TIME-BASED OPERATIONAL MEASURES
Lead Time
Lead time is the elapsed time between a defined start event and a defined completion event. In logistics, it may describe supplier replenishment, production, order processing or delivery, depending on the chosen scope.
LEAD TIME IN PRACTICE
- Name the endpointsSpecify the start and finish events.
- Choose the clockDefine calendar or working time and time zones.
- Measure the variationCompare actual records over the same scope.
Use the agreed units, actual records and approved procedures for your operation.
A WORKED EXAMPLE
Twenty days to receive is not twenty days to use.
A purchase order is released on day 0, goods arrive on day 20 and become available on day 21. Release-to-receipt lead time is 20 elapsed days; release-to-availability is 21.
WHAT THIS MEANS FOR YOUR QUOTE
Agree the requirement before comparing quotes
Use the actual shipment, stock and service requirements. Record the billing unit, included work and responsibility for exceptions.
A LITTLE MORE CONTEXT
Questions about Lead Time
Does lead time always mean delivery to the customer?
No. Its scope must be stated.
Are working days and calendar days equivalent?
No.
Can an average hide unreliable performance?
Yes. Review the distribution and exceptions.
Source & example notes
Definition and operational example prepared by 3PL Hub. Examples describe hypothetical requirements; verify the actual records and agreed procedures for your operation.
Quantities, costs and scenarios are illustrative, not operating targets, approved handling instructions or guarantees. Source guidance reviewed 22 October 2026.
Last updated: · 3PL Hub
