Lead time is the elapsed time between a defined starting event and completion, such as the period from order placement to delivery. Because businesses measure different stages, every quotation, purchase order, and supplier comparison should state what event starts and ends the lead-time calculation.
Quick reference for Lead time
| Check | What it means for the transaction |
|---|---|
| Category | Trade and logistics |
| Record to keep | Keep the agreed term, named place, shipment reference, carrier event, cost allocation and delivery evidence when they apply. |
| Do not infer | A delivery term does not settle payment timing, transfer of title or regulatory responsibility unless the contract says so. |
Lead time and nearby terms
- Bid comparison: Bid comparison is the process of normalizing supplier quotations so prices, units, specifications, lead times, freight, taxes, payment terms, and exceptions can be evaluated on the same basis.
