How to reduce your Lead Time?

Lead time can be defined as the time when a customer places an order to the time they accept it from the supplier. Any business is a link between the target customers and suppliers. Your competitive position is determined by your ability to deliver the best quality products, on-time delivery, desired products, etc.

To reduce your lead time, consider the following strategies:

  • Remove unreliable supplier: A supplier evaluation must be done before finalizing the deal, this will improve the impact of your company on the customers. If your supplier is sending back late shipments, then its time to cut them out of your supply chain. This would be costing you more than finding a new one.
  • Choose the right Vendors: Choosing the right vendors for your business is very essential. The vendors who are close to your warehouse can be a great decision. This will reduce your lead time and not complicate the process.
  • Share demand forecast: In an industry with natural fluctuation, orders differ from month to month depending upon the demand. In case of orders which are larger than normal, informing your supplier about the forecast will keep him prepare and ready for managing the same.
  • Less External processes: If all your processes are taking place in house this will also help in reducing lead time. This way you will not be dependent on the third party or have to send it out for the completion of the process.
  • Order processing workflows: Automating your internal order processing workflow can help you get your finished product ready early. If you fail to perform well in the internal processes it is likely to increase your lead time.
  • Smart work: To increase your productivity and to reduce the lead time you have to work smartly. Allocate different processes to each employee who can complete it at the same time. This will help in the smooth and efficient functioning of the lead time-management system and will not create any delay.
  • Internal communication: In order to not create any confusion or delay in the process, it is necessary to communicate properly. The process will need inputs from different levels, hence collaborating well at all internal levels can help reduce lead time.

These above-mentioned topics can help you reduce lead time and increase productivity. It is essential to consider the above strategies for the best results.