Lead Times matter in Supply Chain - Ep 29

Full transcript: https://www.lokad.com/tv/2018/11/21/t... Accurately estimating future lead times is critical for accurately estimating the amount of inventory needed to fulfill future demand. However it is often it is a factor which is overlooked by companies, with a far greater importance being placed on forecasting. On this episode of LokadTV we explain why they are critical to strong business performance and why if you don’t take them seriously you might as well use a random number generator for your forecasts. We talk to Joannes Vermorel and get his views on why many of his customers have had a rather inexperienced approach to their lead times. Lead Time is an important factor for customer satisfaction. It can be summarized as the amount of time between process initiation and completion. But despite its apparent simplicity, often it is not so simple to actually record lead times, with the metrics often confused by companies. In this discussion we explore why there is uncertainty surrounding something which should be simple and understand how we can have more confidence in the lead times used to make purchase decisions. Finally we understand how to account for the variation in lead time between different transportation methods and how you can keep on top of the shear number of variables which must be taken into account. ****** Episode Map 0:00:00 - Introduction 0:00:34 - Why are we talking about something that seems so simplistic? 0:02:47 - Approaching lead times can be complex, what are the first steps someone should take to improve their lead times? 0:05:23 - What are the key factors that contribute to variability in lead times? 0:07:01 - So you’re saying that you should break down lead times in to individual parts, does this not add a new layer of complexity? 0:08:21 - With these added complexities, how can you have confidence in your lead time predictions? 0:10:03 - What’s a real world example of a customer improving their lead times and how did that affect their business processes? 0:12:37 - How can unexpected delays occur in lead times, shouldn’t a business have a better understanding of things? ****** Learn more: https://www.lokad.com/lead-time-defin... Check out our website: https://www.lokad.com/ Follow us on LinkedIn:   / lokad   ******