Business Terms Dictionary

Purchasing Lead Time

The time required to obtain materials or products from a supplier, measured from the moment a purchase order is placed until the items are received and available for use. © Copyright 2025 Demand Driven Institute. Used with permission.

What does it include?


Purchasing Lead Time includes supplier processing time, production (if applicable), and shipping time.


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In DDMRP, accurate Purchasing Lead Time is crucial for effective buffer management and timely replenishment. Incorrect lead times can disrupt your supply chain, leading to stockouts or excess inventory. ForgeFlow Cloud ERP helps you track supplier lead times, integrate them into DDMRP buffer planning, and receive proactive replenishment alerts—ensuring a smoother, more reliable supply flow.
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