Browse Definitions :
Definition

lead time (in purchasing/procurement)

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)

SearchCompliance
  • OPSEC (operations security)

    OPSEC (operations security) is a security and risk management process and strategy that classifies information, then determines ...

  • smart contract

    A smart contract is a decentralized application that executes business logic in response to events.

  • compliance risk

    Compliance risk is an organization's potential exposure to legal penalties, financial forfeiture and material loss, resulting ...

SearchSecurity
  • DOS (disk operating system)

    A DOS, or disk operating system, is an operating system that runs from a disk drive. The term can also refer to a particular ...

  • private key

    A private key, also known as a secret key, is a variable in cryptography that is used with an algorithm to encrypt and decrypt ...

  • security token

    A security token is a physical or digital device that provides two-factor authentication for a user to prove their identity in a ...

SearchHealthIT
SearchDisasterRecovery
  • What is risk mitigation?

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

  • change control

    Change control is a systematic approach to managing all changes made to a product or system.

  • disaster recovery (DR)

    Disaster recovery (DR) is an organization's ability to respond to and recover from an event that affects business operations.

SearchStorage
  • What is RAID 6?

    RAID 6, also known as double-parity RAID, uses two parity stripes on each disk. It allows for two disk failures within the RAID ...

  • PCIe SSD (PCIe solid-state drive)

    A PCIe SSD (PCIe solid-state drive) is a high-speed expansion card that attaches a computer to its peripherals.

  • VRAM (video RAM)

    VRAM (video RAM) refers to any type of random access memory (RAM) specifically used to store image data for a computer display.

Close