customer lead time

6 Reasons Why It Is Important to Understand Expected Customer Lead Time

Customer Lead Time is unquestionably a buzz word in today’s fast paced business environment, and everyone involved needs an in-depth understanding as to why it is important. Customer Lead Time can be defined as the time it takes from the instant an order is made by a customer, till the moment it reaches the hand of the customer. The term ‘Expected Customer Lead time’ is commonly used in many fields like Manufacturing, Material Requirement Planning & Enterprise Requirement Planning (MRP & ERP), Project Management, Supply chain Management, Supplier Management, and so on. Ideally, every business has a Customer Lead Time. […]

Inventory Management Model

The ABC-XYZ Inventory Management Model – Align Planning Parameter with Business Goals

Why Consider Inventory Management Model? One of the leading problems in SCM is the optimization of inventory. Inventory is actually a consequence of other business parameters and policies, such as:   Company goals and objectives: sales target, fill rate goals, purchase price variance, etc Operational policies and parameters: lead times, lot sizes, change over times, safety stocks, replenishment model, frequency and length of planning cycles, etc Efficiency in the execution of those policies: forecast accuracy, manufacturing & quality performance at all levels of the supply chain, etc Number of discrete levels in the business model: vendors, warehouses, factories, distribution centers, etc […]

12 Powerful Inventory Reduction Tips to Free Up Cash

Inventory Reduction Tips Inventory reduction is one of the key goals for most businesses. In this article I have outlined 12 tried and test tips which I have used in my career and find it effective in terms of achieving results. Reduce Lead Times A reduction in lead time will lead to products / materials not being held in stock for a long time. Both a reduction in supplier lead time and manufacturing lead time will contribute to inventory reduction. To reduce lead time the throughput, WIP and cycle time will need to be measured in order to get a […]