What is Lead Time in Retail? Explained

Lead time is the duration between initiating a purchase order and receiving the corresponding goods or services. It encompasses the entire procurement process, from order placement to product delivery. Retailers carefully manage lead times to ensure an uninterrupted supply chain, prevent stockouts, and meet customer demands efficiently. By minimizing lead times through effective inventory management and strategic supplier relationships, retailers can enhance operational agility, reduce costs, and optimize their overall business performance.