Lead Time
The total elapsed time between the placement of an order and the receipt of the ordered goods or completion of a process.
Full Definition
Lead time in supply chain management encompasses all time segments from order initiation to delivery, including order processing, manufacturing, transportation, and receiving. It is a key performance metric used to evaluate supplier reliability and plan inventory levels. As a compound noun, 'lead time' is written as two words without a hyphen in most industry style guides, though it is hyphenated when used as an attributive modifier (e.g., 'lead-time reduction'). Editors should enforce this distinction. Lead time should not be confused with cycle time, which measures the duration of a single process step.
Usage
Usage note: Two words as a standalone noun; hyphenate only in attributive use. Distinct from 'cycle time' (process duration) and 'transit time' (transport duration only).
In Context
- "The supplier's lead time of six weeks required the buyer to place orders well in advance of peak season." — Procurement planning report
- "Use 'lead time' (two words, no hyphen) as a noun, but hyphenate as 'lead-time' when modifying another noun." — Style guide annotation