what is lead time in supply chain management
Lead time A more conventional definition of lead time in the supply chain management realm is the time from the moment the customer places an order (the moment the supplier learns of the requirement) to the moment it is ready for delivery. In the absence of finished goods or intermediate (work in progress) inventory, it is the time it takes to actually manufacture the order without any inventory other than raw materials. The Chartered Institute of Procurement & Supply identifies "total lead time" as a combination of "internal lead time" (the time required for the buying organisation's internal processes to progress from identification of a need to the issue of a purchase order) and "external lead time" (the time required for the supplying organisation's processes, including any development required, manufacture, despatch and delivery).[2]
Supply chain management In 1982, Keith Oliver, a consultant at Booz Allen Hamilton (now Strategy),[8] introduced the term "supply chain management" to the public domain in an interview for the Financial Times.[9]
Capability Maturity Model Integration Maturity Level 5 - Optimizing
Supply chain management In commerce, supply chain management (SCM), the management of the flow of goods and services,[2] involves the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of consumption. Interconnected or interlinked networks, channels and node businesses combine in the provision of products and services required by end customers in a supply chain.[3] Supply-chain management has been defined [4] as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally."[5] SCM practice draws heavily from the areas of industrial engineering, systems engineering, operations management, logistics, procurement, information technology, and marketing [6] and strives for an integrated approach.[citation needed] Marketing channels play an important role in supply chain management [6] Current research in supply chain management is concerned with topics related to sustainability and risk management, among others, whereas the “people dimension” of SCM, ethical issues, internal integration, transparency/visibility, and human capital/talent management are topics that have, so far, been underrepresented on the research agenda.[7]