Measures the time taken to receive goods from suppliers after shipment.

What it Measures ?

Time from placing a PO to goods arriving.

Relevant StakeHolders 

Procurement, Logistics

In-depth Use Case / Real-world Example

A company manufacturing bicycles calculates Inbound Freight Lead Time by tracking the time it takes for materials (e.g., steel frames) to arrive after shipment. For example, if it takes 5 days for the goods to arrive after shipment, the lead time is 5 days. Shorter lead times ensure timely production and reduce inventory holding costs.