What is the order lead time?
Whether a company is competitive depends on various criteria. The main factor is whether the company's own products or services meet the requirements of the market.
Order lead time in logistics is one of these requirements. It describes the time that orders take to be picked or shipped to the average for processing. The order lead time is variable, as it depends on many different criteria.
The order throughput time in logistics is made up as follows
The order lead time includes various components:
- The time for the execution of all sequence cuts
- The time for additional drain cuts
- The delivery time (transport time)
- The storage time
Since order throughput time is crucial for the quality of logistics and freight forwarding services, shortening it is always desired. This can be achieved by:
- Digitization of warehouse management systems, for example
- Documentation and analysis of faults and problems (with the aim of preventing further ones)
- Process optimization
- Further training of employees