Lead time is the total time between an order and its delivery or completion. There are several relevant lead times in supply chain: supplier lead time (from order to receipt), production lead time (from order release to finished product), customer delivery lead time (from customer order to receipt). Each has its own components and variability factors.
Short lead time is typically a goal, but it is never free. Shortening lead time requires strategic stock, reserve capacity, nearby suppliers, and/or more agile processes. The opposite (long lead time) forces more accurate forecasting or more work-in-progress stock. The decision is made product by product, customer by customer, based on demand elasticity and marginal cost.
The MULTI ERP records lead times per article, supplier and customer, with a fulfilment history (standard vs actual lead time) that feeds planning adjustments. In operations with subcontracting, the Portal dos Subcontratados records lead times agreed and confirmed by subcontractors, allowing deviations to be detected early. Lead-time analysis by category is frequently one of the most consulted dashboards in MyBusiness-ITV.