Measures the consistency and reliability of suppliers in meeting their lead times or delivery schedules.
What it Measures ?
How inconsistent supplier delivery times are.
Relevant StakeHolders
Logistics Teams, Supplier Managers
Why it Matters ?
Improves variability in supplier lead times.
In-depth Use Case / Real-world Example
A manufacturing company that assembles household appliances tracks Supplier Lead Time Variability to assess how often suppliers deviate from their promised delivery schedules. If a supplier consistently delivers components late or early, this metric will reflect the inconsistency. A low variability score means the supplier is predictable, reducing the risk of production delays. For example, if 90% of orders are delivered within the agreed timeframe, the variability score will be low, showing high reliability.
Sample Formula
Standard Deviation in Lead Times