Lead Time is an important factor in any demand-driven forecasting or retail replenishment system. It drives your order points and helps you place orders at just the right time. If your lead time is inaccurate you will quickly find yourself overstocked or understocked. Are you making these common lead time mistakes that cost retailers millions? - See more at: http://www.data-profits.com/blog/7-reasons-your-lead-time-is-wrong-and-its-costing-you-millions/#sthash.1a3VKdGE.dpuf

1. 7 Reasons Your Lead
Time is Wrong
(And It’s Costing You Millions)
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2. Lead time is an important factor in
any demand-driven forecasting or
retail replenishment system.
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3. Lead time is an important factor in
any demand-driven forecasting or
retail replenishment system.
It drives your order points and helps
you place orders at just the right
time.
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4. If your lead time is inaccurate you
will quickly find yourself overstocked
or understocked.
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5. If your lead time is inaccurate you
will quickly find yourself overstocked
or understocked.
Are you making these common lead
time mistakes that cost retailers
millions?
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6. #1 Ignoring internal lead times
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7. #1 Ignoring internal lead times
The easiest lead time to forget is
time from distribution center to
store.
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8. #1 Ignoring internal lead times
The easiest lead time to forget is
time from distribution center to
store.
Vendor
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9. #1 Ignoring internal lead times
The easiest lead time to forget is
time from distribution center to
store.
Vendor
DC
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10. #1 Ignoring internal lead times
The easiest lead time to forget is
time from distribution center to
store.
Vendor
DC
Store
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11. #1 Ignoring internal lead times
The easiest lead time to forget is
time from distribution center to
store.
Vendor
DC
Store
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12. #2 Using only vendor-quoted lead time
All your vendors supply you with a
standard lead time. Do you know if
that lead time is correct?
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13. #2 Using only vendor-quoted lead time
Vendor Lead Time
Quoted Actual
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14. #2 Using only vendor-quoted lead time
Vendor Lead Time
Quoted Actual
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15. #3 Using the same lead
time for every item
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16. #3 Using the same lead
time for every item
Some items take more time than
others for vendors to produce or
more time for your distribution
center to pick.
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17. #3 Using the same lead
time for every item
Some items take more time than
others for vendors to produce or
more time for your distribution
center to pick.
CAT FOOD
DOG
FOOD
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18. #3 Using the same lead
time for every item
Some items take more time than
others for vendors to produce or
more time for your distribution
center to pick.
CAT FOOD
3
DAYS
DOG
FOOD
14
DAYS
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19. #3 Using the same lead
time for every item
Some items take more time than
others for vendors to produce or
more time for your distribution
center to pick.
CAT FOOD
3
DAYS
DOG
FOOD
14
DAYS
LOST PROFITS!
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20. #4 Using the same lead time
for every location
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21. #4 Using the same lead time
for every location
A truck can only travel 500 miles a
day.
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22. #4 Using the same lead time
for every location
A truck can only travel 500 miles a
day.
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23. #4 Using the same lead time
for every location
A truck can only travel 500 miles a
day.
DC
#1
#2
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24. #4 Using the same lead time
for every location
A truck can only travel 500 miles a
day.
DC
#1
#2
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25. #4 Using the same lead time
for every location
A truck can only travel 500 miles a
day.
DC
#1
#2
LOST
PROFITS!
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26. #5 Hidden Lead Times
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27. #5 Hidden Lead Times
Are you factoring in every stop,
every touch, every delay?
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28. #5 Hidden Lead Times
Are you factoring in every stop,
every touch, every delay?
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29. #5 Hidden Lead Times
Are you factoring in every stop,
every touch, every delay?
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30. #5 Hidden Lead Times
Are you factoring in every stop,
every touch, every delay?
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31. #5 Hidden Lead Times
Are you factoring in every stop,
every touch, every delay?
LOST
PROFITS!
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32. #6 Poor visibility to
actual lead times
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33. #6 Poor visibility to
actual lead times
There is no easy way for you to tell if
your lead times are right.
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34. #6 Poor visibility to
actual lead times
There is no easy way for you to tell if
your lead times are right.
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35. #6 Poor visibility to
actual lead times
There is no easy way for you to tell if
your lead times are right.
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36. #6 Poor visibility to
actual lead times
There is no easy way for you to tell if
your lead times are right.
LOST
PROFITS!
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37. #7 Manual lead time input
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38. #7 Manual lead time input
Even if you can get to the correct
information, it’s not easy to update.
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39. #7 Manual lead time input
Even if you can get to the correct
information, it’s not easy to update.
Step Step Step
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40. #7 Manual lead time input
Even if you can get to the correct
information, it’s not easy to update.
Step Step Step Step Step Step
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41. #7 Manual lead time input
Even if you can get to the correct
information, it’s not easy to update.
Step Step Step Step Step Step Step Step Step
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42. #7 Manual lead time input
Even if you can get to the correct
information, it’s not easy to update.
Step Step Step Step Step Step Step Step Step Step Step Step
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43. #7 Manual lead time input
Even if you can get to the correct
information, it’s not easy to update.
Step Step Step Step Step Step Step Step Step Step Step StepLOST PROFITS!
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44. Even small improvements in the
accuracy of your lead times can pay
off big in GMROI and top-line sales.
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45. The best way to fix all these
problems is to track and forecast
lead times as an integrated part of
your demand forecasting or
replenishment system.
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46. iKIS™from Data Profits allows you to
easily manage all lead times down to
the SKU location while providing
comprehensive reporting and
customizable automated alerts
visible to all stakeholders.
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47. All Material Confidential - Copyright Data Profits 2013
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