Lead Time Optimisation

What is Lead Time Optimisation in Inventory Management?

Lead time optimisation refers to the strategic process of minimising the time required to fulfil an order or complete a particular process. In inventory management, this optimisation plays a crucial role in reducing inventory levels and associated costs while ensuring timely order fulfilment.

Common Challenges:

• Excessive Inventory Holding: Long lead times often necessitate maintaining higher inventory levels to meet customer demand, leading to increased storage and carrying costs.
• Risk of Obsolescence: Extended lead times elevate the risk of products becoming obsolete or perishable before they can be delivered to customers.
• Storage Costs: Prolonged lead times require more warehouse space, leading to higher storage expenses.
• Customer Satisfaction: Lengthy lead times can result in customer dissatisfaction due to delayed order fulfilment.

How can Libra Europe help?

• Lead Time Analysis: Libra Europe conducts a comprehensive analysis of your lead times, identifying areas for improvement.
• Process Streamlining: We help streamline processes to reduce lead times, improving efficiency.
• Vendor Collaboration: Collaborative efforts with suppliers to expedite order processing and delivery.
• Inventory Optimisation: Lower lead times enable reduced inventory levels, leading to cost savings.
• Customer Satisfaction: Timely order fulfilment enhances customer satisfaction and loyalty.

Benefits to Expect:

• Reduced Inventory Holding Costs: Lower lead times allow for reduced inventory levels and associated carrying costs.
• Mitigated Obsolescence Risk: Quicker lead times decrease the likelihood of products becoming obsolete.
• Cost Savings: Reduced storage expenses contribute to overall cost savings.
• Enhanced Customer Satisfaction: Timely order fulfilment leads to increased customer satisfaction and loyalty.