Cumulative Lead Time
Cumulative lead time (CLT) is the total time it takes to source components, build, and ship a product.
This metric is used to measure the efficiency of a company’s supply chain and determine how long it will take for a product to reach customers. CLT can be affected by a number of factors, including supplier performance, manufacturing capacity, and delivery times from suppliers.
Reducing cumulative lead time can help companies improve their overall competitiveness and decrease the time it takes for products to reach consumers.
There are several methods companies can use to reduce cumulative lead time.
- One is to optimize the supply chain so that products move as quickly and efficiently as possible from supplier to customer.
- Another is to work with suppliers to shorten delivery times.
- And finally, companies can improve their manufacturing processes to reduce build time.
In today’s competitive marketplace, reducing cumulative lead time is more important than ever. By understanding and addressing the factors that affect CLT, companies can make significant improvements to their supply chain operations and become more agile and responsive to customer needs.
Cumulative Lead Time Definition – Operations & Supply Chain Dictionary
Manufacturing Lead Times