Glossary Term
Lead Time
The total time that elapses from the moment an order is placed until the goods are received by the customer or the warehouse.
The Clock is Ticking
In e-commerce, time is literally money. Lead time includes everything: manufacturing time (30 days), ocean freight (40 days), customs clearance (5 days), and FBA prep/check-in (7 days). If your total lead time is 82 days, you need to place your next order almost 3 months before you actually run out of stock.
Reducing Lead Time with Better Prep
While you can’t make a ship go faster, you can control the "Internal Lead Time"””how long it takes your team to label and ship boxes once they arrive at your facility. Using automated labeling extensions can shave days off your prep time, getting your products to FBA faster and improving your cash flow.
- Crucial for accurate inventory forecasting.
- Directly impacts your "In-Stock Rate" and IPI score.
- Shorter lead times allow for lower "Safety Stock" levels.