Outbound Freight Lead Time
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Category:  
Operational

Measures the time taken to ship products from the company’s warehouse to customers.

What it Measures ?

Time from shipment ready to departure.

Relevant StakeHolders 

Shipping, Logistics

In-depth Use Case / Real-world Example

A company manufacturing home appliances calculates Outbound Freight Lead Time by tracking the time from when an order is ready to ship until it is delivered to the customer. For example, if it takes 3 days for an order to be shipped and delivered, the lead time is 3 days. Reducing outbound lead time improves customer satisfaction and delivery efficiency.

KPI Definition

Business Value

Movement Direction

Sample Formula

Shipment Departure Time - Shipment Ready Time

Should Aim For
1
2
3
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