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Glossary

Lead time

Lead time is the time between placing an order with a supplier and receiving the stock, usually counted in days or weeks.

By Berend Vrakking, founder of Product Metrics. Updated 7 October 2026.

Formula

Lead time = date stock is received − date the order is placed

Here lead time means supplier lead time, the sense used in stock planning.

Example

Worked example, one order
StepDate
Order placed with supplier3 March
Stock received at your warehouse17 March
Lead time (3 March to 17 March)14 days

This supplier takes 14 days, or 2 weeks, from order to delivery: two weeks in which the shelf has to look after itself. Illustrative data.

For one product, and for an account

Lead time follows the supplier and the route each product takes, so one shop can have a 14-day product on the shelf next to a 12-week one. It also drifts, and the figure you used last season may no longer hold.

Lead time decides how early you reorder. Inventory Insights shows a supplier lead time for each product, and works back from it, with projected demand and a safety buffer, to the reorder date.

Common mistake

Counting only the days on the lorry. The clock starts when you place the order, so the supplier’s own preparation or production time is in there too.

Questions

What does a 2 week lead time mean?

It means the stock arrives about 14 days after you place the order. To avoid running out, place the order while you still have at least 14 days of sales in stock, plus your safety stock.

What is the difference between lead time and delivery time?

Delivery time is only the transit. Lead time is the whole wait, from placing the order to receiving the stock.

Does lead time mean something different in manufacturing?

Yes. In manufacturing and project management lead time can describe the time to complete a process or to fulfil a request. In stock planning for an online shop it means the time from ordering from a supplier to receiving the stock.

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