Browse Definitions :
Definition

lead time (in purchasing/procurement)

Contributor(s): Matthew Haughn

Lead time is the amount of time between the commencement and finishing of a process.

In procurement, lead time includes the first effort to initiate acquisition of goods or services, up to the time of their arrival. Procurement lead time includes identifying a need, selecting a good or service and sourcing vendors, in addition to time spent negotiating, ordering and paying. Lead time in procurement also includes purchasing and its lead time. The procurement process is more variable than purchasing lead time, depending on sizes and scopes of what is being procured. Usually lead time in procurement is measured in months.

Purchasing lead time starts when the goods or services are ordered and ends when they are received. This lead time includes availability confirmation, ordering, order acknowledgement, shipping notice, receipt of goods or service, invoice recording and payment. Purchase processes are less customized than procurement processes and tend to have similar best practices across various types of businesses.

This was last updated in April 2016

Continue Reading About lead time (in purchasing/procurement)

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

SearchCompliance

  • regulatory compliance

    Regulatory compliance is an organization's adherence to laws, regulations, guidelines and specifications relevant to its business...

  • Whistleblower Protection Act

    The Whistleblower Protection Act of 1989 is a law that protects federal government employees in the United States from ...

  • smart contract

    A smart contract, also known as a cryptocontract, is a computer program that directly controls the transfer of digital currencies...

SearchSecurity

  • RSA algorithm (Rivest-Shamir-Adleman)

    The RSA algorithm is the basis of a cryptosystem -- a suite of cryptographic algorithms that are used for specific security ...

  • remote access

    Remote access is the ability to access a computer or a network remotely through a network connection.

  • IP Spoofing

    IP spoofing is the crafting of Internet Protocol (IP) packets with a source IP address that has been modified to impersonate ...

SearchHealthIT

SearchDisasterRecovery

  • virtual disaster recovery

    Virtual disaster recovery is a type of DR that typically involves replication and allows a user to fail over to virtualized ...

  • tabletop exercise (TTX)

    A tabletop exercise (TTX) is a disaster preparedness activity that takes participants through the process of dealing with a ...

  • risk mitigation

    Risk mitigation is a strategy to prepare for and lessen the effects of threats faced by a data center.

SearchStorage

  • enterprise storage

    Enterprise storage is a centralized repository for business information that provides common data management, protection and data...

  • disk array

    A disk array, also called a storage array, is a data storage system used for block-based storage, file-based storage or object ...

  • optical storage

    Optical storage is any storage type in which data is written and read with a laser. Typically, data is written to optical media, ...

Close