Measures the time between placing an order with a supplier and receiving the goods.
What it Measures ?
How long it takes to get an order after placing it.
Relevant StakeHolders
Logistics, Procurement Teams
In-depth Use Case / Real-world Example
A company that manufactures electronic circuits calculates Order Delivery Lead Time by measuring how long it takes from placing an order for components to receiving them. If the company orders components on the 1st of the month and receives them by the 10th, the lead time is 9 days. Shortening this lead time helps reduce inventory holding costs and keeps production running smoothly.
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