Lead time assessment is the time from the beginning of the outsourcing process to its conclusion. In short, it’s the amount of time you need to get your product. However, strategic lead time management is tricky because of the different factors you should consider during your lead time analysis: manufacturers palliate the production schedule, shipping delays may occur and your inventory levels may be inadequate.
We believe all lead time assessments should check three main aspects: reviewing the production line, verifying the factory lead time, and analyzing the logistics estimates. Firstly, closely scrutinizing bottlenecks can give you a clear understanding of the lead time potential. Secondly, checking production process information against what the factory estimates gives an accurate understanding. Thirdly, getting the product from the factory to your warehouse requires knowledge about logistics and customs processes.