Maximizing your efficiency and profits are always an important topic for those within the manufacturing industry. Order lead times are an essential part of your manufacturing processes and keep your supply chain performing well. Longer lead times can lead to customer dissatisfaction and eventually loss of money. Therefore, manufacturers must develop strategies for reducing lead times to keep up with competition, reduce costs, and make more money.

Lead times are the amount of time that it takes for an order to be received, processed, and for the product to leave the manufacturing facility and arrive at its destination. When wanting to focus on optimization it is important to look at the purchase order processing and shipping, so that you can find ways to increase supply chain efficiency and lower lead times.

In this article, we will discuss why lead times matter, the benefits of lead time reduction, strategies to help reduce lead times, and how Conner Industries can help in the process.

Longer lead times can lead to negative effects for both customers and suppliers. Lead times are a huge variable when it comes to managing inventory and your supply chain in general. With shorter lead times your company can be more productive, and it will be easier to increase profits across the board.

When lead times take longer than expected, your employees will have to deal with unhappy customers and unfavorable situations. This can take a toll on a business with an increase in stress, a decrease in profits, and missed opportunities in the future.

There are many benefits to lowering lead times and it is an important strategy to gain a competitive advantage. If your competitors have shorter lead times, you will lose business with even the most loyal of customers. Here are some of the benefits of shorter lead times:

Reducing lead times means shorter wait times for you and your customers. Low lead times limit the amount of time between when an order is placed, received, and employees begin to work on it. This means your company is wasting less time waiting for products to arrive.

Working with suppliers that you know you can trust and are also working towards your goal of lowering lead times will give you more control over your supply chain. When you take the time to invest in building stronger supplier relationships, it will give you a greater ability to manage what is moving in and out of your supply chain. This also helps to control lead times.

Everyone wants less wasted resources. When working on optimizing lead times, you will start to see where waste tends to happen within your supply chain. Once you have the awareness, you can start to work towards less waste and in turn an increased profit. You can cut out any steps that may hinder lead times.

Consistency with shorter lead times will allow your customers to trust you. This can lead to more opportunities and referrals, which will lead to growth and an increase in profits. There will be less time spent trying to work out issues and more time spent on building relationships. Operational confidence is a key to success when asking customers to trust and collaborate with you.

There is no other way to think about it, if you are getting products to customers quicker than other competitors with equal quality, they will want to work with you. If it stays consistent, they will continue to work with you. There is no replacement for a happy customer that keeps coming back. It is in your best interest to lower lead times while maintaining quality products for your customers.

Mapping out the entire process includes measuring your total lead times with variance. In addition, it is beneficial to know the lead times for individual steps, so that you have a breakdown of where you need to optimize steps. Once you have an in-depth understanding of where lead times are you can start to enhance productivity and better manage logistic issues.

After you have mapped out the whole process in its entirety and with individual steps, you will be able to begin the work of optimizing the current processes. This should start with the order-to-delivery process. This encompasses the entire flow from when the customer places an order to when they receive the product. Placing orders should be as streamlined as possible, which will increase customer satisfaction and lower lead times.

After the orders have been placed, there needs to be timely communication, so no time is wasted within your organization. Improved internal communication or implemented an automated workflow system that can help to manage the communications. Lastly, check in with your suppliers to check that their part of the supply chain will not be disrupted. Lead times depend on a healthy supply chain.

Having a good working relationship with your suppliers makes all the difference in lowering your lead times. Your supplier should be dependable and consistent. Check with them about what backups or contingencies they have in place. Supply chains can be disrupted for many reasons and your supplier should be prepared for it. Suppliers impact shorter lead times.

Conner Industries is a leading provider of industrial wood and packaging solutions. We specialize in supplying industrial grade lumber, as well as pallets, crates, and other transportation products to customers nationwide.

We help customers meet their lead times by meeting our own. We have a quick turnaround for your standard wood packaging needs. Working with a reliable supplier can make all the difference in your supply chain efficiency.

With 14 plants across the country, we have contingencies in place so that you are never left without the supplies you need. We have a proven record of being able to use our backup locations, no matter what the supply chain disruption is. Conner puts our customers’ needs first and wants to see you meet all your goals. Reach out today to see how we can help you lower lead times and optimize your supply chain.