Lead Time

Lead Time

Lead Time is the total time required for a product to be shipped and delivered to its destination, influencing inventory management and order fulfilment.

Lead Time in maritime or ocean shipping refers to the total time it takes for goods to be transported from the point of origin to the final destination. This duration encompasses various stages of the shipping process, including booking, handling at ports, transit on the vessel, and subsequent inland transportation.

Factors influencing lead time include the shipping route, port efficiency, customs clearance, and the chosen mode of transport for pre-carriage and on-carriage.

Understanding lead times is crucial for supply chain planning, allowing businesses to:

  • Manage inventory
  • Coordinate production schedules
  • Minimize warehousing and storage costs
  • Meet the lead time obligations in the contracts/SLAs
  • Meet customer expectations

Technology Can be Leveraged to Calculate Lead Time

Technology plays a crucial role in calculating and managing shipping lead times effectively. Advanced analytics, real-time tracking, and data integration tools can provide insights into historical shipping data, allowing for more accurate predictions. Machine learning algorithms can analyze various factors influencing lead times and continuously improve predictions based on changing conditions.

Get true visibility for your container shipments, not just carrier updates. Try it yourself!