Lead Time
The time between placing a supplier order and receiving the goods.
Definition
Lead time is the elapsed time from when a purchase order is placed with a supplier to when the items arrive and are available to use. It includes order processing time, shipping, and any supplier preparation time. Lead time is a critical input for calculating reorder points and par levels.
Why It Matters
If you only order when you run out, lead time is the gap during which your office is without supplies. Knowing your lead time lets you order early enough that new stock arrives before the old stock runs out. Shorter lead times allow lower safety stock; longer or unpredictable lead times require larger buffers.
Example
Your office supply vendor processes orders on Mondays and delivers on Fridays — a 5-day lead time. If you wait until you have 0 reams of paper before ordering, you will be out of paper for 5 days. With lead time factored into your reorder point, you order when you have 10+ reams left, and the delivery arrives before you run out.
Related Terms
Reorder Point
The stock level that triggers a new purchase order to avoid running out.
Safety Stock
Extra inventory kept as a buffer against demand spikes or supplier delays.
Par Level
The minimum quantity of an item that should always be on hand.
Procurement
The end-to-end process of acquiring goods and services for an organization.
Put Lead Time into practice
OfficeStoreApp tracks par levels, reorder points, and consumption automatically — no spreadsheets, no manual counting.
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