What is lead time and why does it matter for your business?
In short, lead time is the time it takes for a product to move through the supply chain from order to final delivery. This critical metric plays a significant role in your supply chain efficiency and overall business performance. With shorter lead times, you can respond more effectively to market demand, keep your inventory costs down and ensure your products get to customers fast.
With our decades of experience in supply chain management and global network, DSV excels at minimising lead times. We leverage advanced technologies, including our DSV Supply Chain Management (SCM) Services, to help businesses stay competitive while meeting customers’ ever-growing expectations.
Common issues with long lead time
If your business faces long or unpredictable lead times, it can affect business performance in a number of ways. Firstly, when a supply chain loses it predictability or is affected by delays and disruptions, it has a direct effect on your customer satisfaction rate. In the worst case, you can even potentially lose customers as they seek a more reliable partner. What’s more, it can also increase operational costs as you work to get your lead times under control
Factors that affect lead time
- Supplier delays and bottlenecks
- Insufficient transportation routes
- Poor demand forecasting
- Inventory management challenges
DSV’s proven solutions for minimising lead time
If you want to minimise lead time and increase your supply chain efficiency, we offer a number of proven solutions. These let you streamline your business operations and achieve more predictable lead times.
Key focus areas for lead time reduction
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Supplier coordination
With our global network of trusted partners, we can support you to build strong partnerships that allow timely delivery and keep your supply chain running smoothly. -
Optimised transportation
Rail, road, sea or by air – we offer a range of transport solutions for the most efficient delivery routes supported by our advanced logistics tools that give you full visibility over your cargo. -
Inventory management
We can support your business to have the optimal stock levels to meet demand and avoid delays. With our Inventory Management Solution, you can make data-driven decisions and avoid operational disruptions. -
Real-time tracking and visibility
DSV offers a range of intelligent solutions that let you monitor and adjust your shipments in transit. These give you greater transparency, more control and one point of access for all information regarding your transport bookings.
How reduced lead time can benefit for your business
Reducing lead time offers major benefits for your business, including cost savings and stronger customer relationships. By streamlining processes and ensuring faster delivery, companies can lower inventory carrying costs, minimise storage needs, and reduce the risk of stockouts or delays.
But the real game changer? Exceeding delivery expectations means you can foster greater trust and loyalty among your customers. When you reduce lead time, you can enhance their overall satisfaction and likelihood of repeat business. This results in more satisfied customers and greater operational efficiency in your supply chain.
Get the results you need with DSV
- Faster delivery times for improved customer satisfaction.
- Reduced inventory holding costs.
- Enhanced agility to respond to market changes.
- Increased operational efficiency and competitiveness
Tailored strategies for your industry
Every industry has its unique challenges and opportunities. With our global presence and team of over 80,000 specialists located around the world, you can be sure we have the expertise you need, whatever business you are in. Our experts are ready to customise your lead time strategy to overcome the challenges faced by your business and supply chain.
DSV has a strong presence in the following industries
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Automotive
Whether you work with commercial vehicles, OEMs or spare parts, our supply chain experts can ensure the components you require are delivered on time and in full so you can meet tight production schedules and customer demands. -
Technology
From cloud computing to consumer devices, the digitalised world opens up an array of opportunities. We help tech businesses to reduce lead times and optimise their supply chains so that they are robust and resilient. -
Healthcare
Supply chains in the healthcare industry require control from end-to-end. We can support your business to manage the complexities this brings with it – from GDP-compliant warehousing to cold chain transport. -
Industrial
The industrial sector is characterised by complex supply chains with a need for flexibility and reliability. We streamline the supply of raw materials and components and balance this with cost so you can handle the challenges of dynamic market conditions. -
Consumer
With the rise of online shopping, consumers expect their goods to be with them fast. We support our customers with solutions that ensure their products reach retailers and consumers on time and as expected.
Your questions about lead time answered
Lead time in supply chain management is the amount of time it takes from the moment an order is placed to when it is delivered to the customer. It includes every step of the process – from sourcing materials to manufacturing and transportation. Shorter lead times enable businesses to work more efficiently, reduce costs, and keep customers happy by ensuring they get their orders on time.
DSV has a global network of experts who can support customers to optimise their supply chains and reduce lead time. They use their local market and industry expertise to overcome challenges and introduce great resilience. From adjusting transport routes to ensuring greater visibility over the supply chain and providing valuable insights that can be used to create the right strategy, they can cut lead time and ensure greater predictability in the supply chain.
Definitely! With decades of experience in supply chain management, we know what it takes to get lead times under control. This includes using our network of trusted suppliers to build strong partnerships, optimising transportation routes, managing inventory and using tracking and visibility tools to regain control of the supply chain.
DSV has a number of solutions that help customers in all industries reduce their lead time and keep their supply chains running smoothly. These include DSV Supply Chain Management (SCM) services that offer full visibility of the supply chain – down to SKU level [link to SCM tool]. Our tools can even be customised so they can preempt disruption and take action by rerouting or using other suppliers to avoid delay and keep deliveries on track.
How DSV helped a client achieve shorter lead times
From fast implementation to short lead times, DSV is working with sports apparel footwear and accessories company Under Armour to run their inbound logistics operations. DSV runs their pick and pack operations at the logistics centre in Venlo in the Netherlands and supported Under Armour’s IT department in Baltimore with the installation of their Manhattan warehouse management system. With the new set-up, DSV has achieved short lead times for Under Armour’s three different order flows for wholesales, distributors and e-commerce.
Read about Under Armour
Partner with DSV for shorter, more reliable lead times
If you want to cut lead times and gain greater predictability in your supply chain, let us help. Our team understands how to create a reliable and robust supply chain and can support you to create a customised lead time reduction strategy. With reduced lead time, you can stay ahead of competitors and meet customer demands.
Request a free lead time analysis Talk to our supply chain experts
Trust DSV to keep your business moving
We are committed to keeping supply chains flowing so businesses can achieve operational excellence. Our teams of experts and global network can help you reduce lead time, optimise your supply chain and improve your business performance.