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Product ID: 402133EAU
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Supply Chain Lead Time Reduction Tips and Tricks

OnDemand Webinar (85 minutes)

Learn methods that can be utilized in both the short and long term to reduce lead times.All companies have the need to reduce supplier's lead times on occasion. In order to do this effectively the components of lead time must be understood. The product's manufacturing environment also affects the extent lead times can be reduced. Job shops offer the best opportunity to reduce lead times, while products manufactured in a process environment offer the least. There are methods that can be utilized in both the short and long term to reduce lead times. Purchase order language addressing delivery and lead time can be employed to maximize the buyer's leverage when dealing with late deliveries or long lead times.


J. David Alewine, Conflict Resources and Resolution, LLC


What Is Lead Time?

Manufacturing Environments

• Repetitive

• Discrete

• Process

• Job Shop

Components of Lead Time After Order Placement

• Supplier Order Processing

• Engineering

• Material Acquisition (MRP)

• Queue Time

• Manufacturing and Assembly

• Quality

• Packaging and Transportation

The Purchase Order

• Negotiate Lead Times

• Hold Supplier Accountable

• Liquidated Damages

Lead Time Reduction (Short Term - Increase Capacity)

• Eliminate or Reduce Engineering Time

• Material Release

• Utilize Excess Capacity

• Overtime

• Subcontract a Portion of the Work

• Pay a Premium

Lead Time Reduction (Long Term)

• Reduce Supplier Base

• Build Relationships With Suppliers

• Standard vs. Specialty

• Increase Order Frequency

• Share Sales Forecasts