Reducing Lead Times
Why should you focus on your business' lead times? It's important to ask yourself this question, especially if your business is serious about getting things done. When it comes to your supply chain, reducing lead times is essential if you want real performance for your business. If you want to increase efficiency in your business and focus on long-term growth strategies keep reading below.
Lead Time Factors
Many things can hurt your company's lead times. For example, if you are outsourcing products from overseas, these often have an extended shipping time, this could play a significant factor in your supply chain's performance. This may seem like a good alternative, but it could be costing you more money in the long run. Are you factoring this time into your sales, production and other important metrics? Shipping delays can often turn into months instead of weeks, causing slowdowns in production and ultimately hurting your bottom line.
What Contributes to Long Lead Times?
- Delays in Ordering Parts.
- Supplier Delays
- Freight Delays
- Shipping & Receiving Delays
The truth is, a lot of the delays that lead to longer lead times are mostly external factors. Not everything has to do with your side of things. These delays can often add weeks to lead times. Delays are frustrating, costly, and bad for business overall.
Take Control of Your Inventory
Instead of living with constant uncertainty, wouldn't it be nice to know exactly when your products arrive? That you can maintain control of your supply chain? If you answered yes, then it might be time for you to consider finding out ways to reduce lead times in your supply chain. There are several ways to do this you can:
- Build stronger relationships with your supplier(s) and begin to utilize their Vendor Managed Inventory programs.
- Identify all the parts of your supply chain.
- Reduce the number of vendors you deal with (Vendor Consolidation)
- Focus on the big picture.
- Source materials from domestic suppliers.
- Focus on accurate forecasting.
You already know that reducing your lead times and gaining control of your supply chain is important. Your business and its long-term success depend on this. So why are you still settling for old solutions that don’t lead to future success? It’s time to figure out how Austin Hardware® can secure solutions for your business. It’s time for Austin’s Able II™ Vendor Managed Inventory.