Measures the total time taken to deliver a product from production to the customer, including all handling, packaging, and shipping times.

What it Measures ?

How long it takes to deliver after an order is placed.

Relevant StakeHolders 

Supply Chain Manager, Customer Service

Why it Matters ?

Measures efficiency in fulfilling orders.

In-depth Use Case / Real-world Example

Delivery Lead Time represents the efficiency of the entire order fulfillment process. It’s calculated from when the order is placed to when the product reaches the customer. For example, if a customer orders a product on January 1st and receives it on January 5th, the Delivery Lead Time is 4 days. A shorter delivery time means a faster response to customer demands, which can improve customer satisfaction. If a factory is experiencing delays due to slow packaging or transportation, improving these areas can shorten lead times and create a competitive edge. Efficient lead time management also helps meet customer expectations and manage inventory more effectively.