Business Terms Dictionary

Lead Time

The time interval between initiating a process and its completion. In supply chain management, it refers to the time taken from placing an order to receiving the goods. Lead time includes procurement, production, and transportation time. © Copyright 2025 Demand Driven Institute. Used with permission.

What are Lead Times used for?


Lead Times are a critical factor in inventory planning. In general, shorter and more predictable lead times improve responsiveness, while long or unpredictable lead times can disrupt supply chains easily.


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ForgeFlow Cloud ERP with its DDMRP system helps you minimize and stabilize lead times by optimizing replenishment signals and supplier coordination. Gain agility, reduce waiting times, and ensure consistent product availability!

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