Discover what lead time is and how this concept can make the difference between having an efficient logistics process and not.
It's not about storage—it's about how to carry out that process. This has always been Bertolini's belief, and it has proven more than essential in recent years. Companies already know that optimizing logistics processes is a priority for those who want to provide faster deliveries at the lowest possible cost.
In this scenario, the concept of lead time becomes quite prominent. A deep understanding of this term means gaining powerful insights into supply chain waiting times and how to minimize bottlenecks. It is also through this knowledge that companies understand how intralogistics can impact this metric.
What is Lead Time?
This term comes from English and, in a free translation, means "waiting time". In logistics, lead time is the total period between the order placed by the customer until the item is shipped to the consumer.
Not surprisingly, this is one of the metrics which can be used to monitor the operational efficiency of the company's logistics warehouse. It is the term of reference for tasks such as supply chain management, manufacturing, and project management. Minimizing lead time means optimizing processes and reducing waste.
In logistics, lead time helps to study the period between order receipt and delivery. This allows managers to develop strategies to reduce waiting times and resolve bottlenecks. This can include integrated management systems, like WMS, intelligent use of storage systems, among others.
How does intralogistics impact Lead Time?
The popular saying "time is money" perfectly fits the definition of What is lead time?. The higher this indicator, the more time and resources companies are using—and the goal is always to reduce these factors. Furthermore, the shorter the lead time, the better the customer service tends to be, as customers receive the product faster than expected.
Inside the warehouse, it is precisely the intralogistics, or "in-house logistics"“, the main player responsible for rethinking operational flows. Thus, it is an essential ally in reducing lead time, since it controls the entire material storage flow.
In recent years, large companies have begun investing in this sector. This is the case with Nike, Amazon, and 3M, which understand that a well-structured intralogistics system impacts the quality of services and team productivity. Therefore, it is a... investment which is quickly converted into profit.
Intralogistics contributes to lead time Your company benefits primarily from increased productivity. Since the supply chain is focused on creating value within the warehouse, employees find it easier to perform their tasks. Consequently, the man-hour ratio is more productive.
Furthermore, in-house logistics promotes the reduction of unnecessary movements, as it manages the operational flow. This also reduces delivery time, since employees do not waste energy on unnecessary travel or tasks.
We hope you have understood how intralogistics impacts your company's lead time. Count on us. Bertolini to offer storage systems that assist in this process.
DOWNLOAD OUR INFOGRAPHIC CLICKING HERE: 4 advantages that Intralogistics can provide for your warehouse
