Supply Chain Lead Time: How to Track & Optimize (calculation & example in Excel)

Download the Lead Time Calculation in Excel here: abcsupplychain.com/download-e...
Join my Inventory Management WORKSHOP (free): abcsupplychain.com/inventory-...
How efficient is your supply chain lead time? 🚀⏱️
Here are the 8 classic mistakes most of us end up making 🙅‍♂️❌:
We don't even track our lead time
We trust our transporter/supplier contract lead time
We only focus on our transport lead time
We never update our lead time in our ERP/WMS/Excel
We trust too much our IT lead time
We don't consider outliers (extreme values)
We only care about the average lead time
We want to reduce the lead time before stabilizing
The consequences :
-Poor visibility 👀
-Poor customer service 😤
-Overstock 📦
-Stockouts 🧻
-Low profits 📉
-And a lot of stress 😓
I bet you fell into at least one of the above (like me) 😜
Don't worry; I've got you covered!
In my new Step-by-Step KZbin tutorial, I explain to you in simple terms how to master & improve it by reviewing your:
Review period lead time 🔄
IT confirmation lead time 💻
Production lead time 🏭
Shipping lead time 🚢
Waiting time ⏱️
International Transport lead time 🛫
Customs Clearance lead time 📝
Warehouse Lead Time 📦
Local Transport lead time 🚚
Reception lead time 🤗
As always, you can download an Excel example to start tracking lead time immediately with your company 🚀
Enjoy this video, and let me know how you track, stabilize and improve your lead time ❓🙋‍♂️.
▬▬▬▬▬▬▬▬▬▬▬ CHAPTERS ▬▬▬▬▬▬▬▬▬▬▬▬
0:00 Intro
0:48 Consequences of bad lead time
2:00 Classic Lead time mistakes
3:23 Lead time meaning
4:37 Review Period Lead time
5:11 IT confirmation Lead time
5:39 Production / Manufacturing lead time
7:00 Waiting Time
7:26 Shipping lead time & custom clearance
7:41 Warehouse lead time
8:32 Local Delivery lead time
9:06 Excel Tutorial
10:00 Contract & Real Delivery Date
10:50 Contract & Real Lead time
13:00 Lead Time Chart
14:30 IT Lead Time Reliability & Outliers
16:09 Lead Time Stability
17:43 My Inventory Management Workshop
MY BLOG: abcsupplychain.com
#supplychain #logistics #leadtime

[@splattrick2432]

I love all of these videos so much and am slowly working my way through them ❤ You are the best Supply Chain Master I've found on KZbin. Thank you so much for sharing your amazing wealth of knowledge!

[@ajaykatiyar815]

Kindly make video to create a Dashboard for forecast accuracy, and KPIs

[@pokpikchan]

very nice explanation

[@GeorgeAJululian]

Very Useful Many Thanks

[@mazensalama5937]

thanks so much

[@yuhaohan556]

Thank you for your tutorial . It is very helpful.

[@abcsc]

My pleasure Yu :) I have more tutorials coming soon 🚀

[@jlobe3159]

Great video. Unfortunately there are too many suppliers with high uncertainty

[@aicenterprisespvtltdbangal1471]

A very good and useful tutorial

[@abcsc]

Thank you 🙏

[@luminiweerasinghe1062]

Thank you

[@abcsc]

I am glad you liked it Lumini :)

[@freddywong7139]

Good video, thanks! 😉qeustion: if a MTO item's raw material is also defined as MTO (specific to this final product), the total replenish lead time of the final product (item) should include the lead time of the raw material (MTO)?

[@petecardona8203]

Thank you for the explanation. Question, why would I use this Excel when at work I am using ERP. programs like SAGE, SAP for Hannah or TigerPaw do all that a lot faster? Some tips would be appreciated .

[@telisko]

Hi, Edouard, but what about the replenishment time? What is the lead time good for if the LT is around 40 days but the replenishment time is 5 days? Shall I use 40 or 5 days for calculation of my safety stock? Or some combinations of those 2 numbers?

Bonjour Edouard, really enjoying your videos. Quick question on how to exclude outliers: would you use the TRIMMEAN function for that? If yes, which percentage would you apply? Thank you :)

[@abcsc]

Hi Sim ! Thanks a lot for your feedback. I prefer more advanced logical functions however TRIMMEAN could be a good alternative to start. The percentage depends on the length and volatility of you lead time. 50% delay on 1 day lead time in not the same than 50% delay on 120 days lead time. You should try different values on you data set and see the impact. Keep in mind that we should only remove extreme and exceptional values (IT issues, error, long shortage period ...) , however, if you supplier has terrible lead time, it should be reflected in you average and level of uncertainty. Good luck and take care, Edouard

​@@abcsc Merci pour ta résponse élaborée :) Could you point my in the direction of more advanced logical functions (like what to search for)? Thanks, Simon

[@milchsauger]

Hi Edouard, Thanks for this amazing content! I have a question: how to track a lead time for blanket order? E.g. a customer issued a PO of 100 ton for product ABC on 1st November, but would like to have them delivered 25 x 4 times for this month, 1 delivery per week. so how do we calculate the lead time? is it different between each deliveries? 1st delivery ( 1 week LT), 2nd delivery (2 weeks LT), 3rd delivery (3 weeks LT) and 4th delivery (4 weeks LT)?

[@andrewvignolle9772]

I came here to ask the same question. Did you ever get an answer ?

[@5588990ful]

There are many conditions, which get changed the real delivery time and it get changed time to time. so the change the average lead time every time will create the delay in some of the shipment's, which create shortage in the store. How will we take care this?