15 Nov
Article content
The global supply chain continues to dominate the headlines as we face delays and disruptions on a global level. As an owner boutique or store you may have experienced delayed deliveries from suppliers. You may have had to provide slower than average fulfillment options to customers. Customers are feeling the impact of these interruptions more than ever as they struggle to find high-demand items and wait longer for packages to arrive at their doorstep.
To stay competitive during low inventory and long delivery windows, focus on delivery time. In the 2023 Consumer Trends Report, 40% consumers said they would not commit to a online purchaseIf it takes more than two days for delivery. If customers think your turnaround time is too long, they will not hesitate to go to a competitor.
What does lead time mean in shipping?
Delivery lead time refers to the amount of time between placing an order and its final delivery. It includes production preparation, manufacturing, packaging, shipment and delivery. As an owner boutique or storeYou face this both when buying from a supplier and when a customer places an order in your store. You need stock on hand to deliver to your customers, so it's important to know when to start the process with your supplier.
How is the delivery time calculated?
Calculating delivery time is a simple formula, but it requires reliable information from your suppliers. From order placement, pre-production, manufacturing, shipment and delivery. Once you have accurate data, you add how much time each step of the logistics process takes. Total your delivery time.
7 ways to reduce delivery time
- Use software to plan your supply chain;
- Automate order processing and data entry;
- Optimize suppliers and prioritize reliability;
- Offer vendors a bonus structure;
- Consider local suppliers whenever possible;
- Forecasting future product demand;
- Maintain a healthy cash flow to fund your supply chain;
What does delivery time mean for your business?
Calculating and optimizing lead times leads to faster turnaround, more sales, more satisfied customers, and healthier profits. Delivery time is simply the amount of time that elapses between placing an order and delivering the product. Make sure you apply these tips to improve your supply chain and optimize lead times.