Understanding Lead Times (Expected vs. Measured)
🗓️ Expected Lead Time vs. Measured Delivery Time
Optiply uses two different types of lead time to ensure your purchase advice is as accurate as possible: the Expected Lead Time (what you agree to with the supplier) and the Measured Delivery Time (what actually happened).
1. Expected Lead Time (The Agreed-Upon Duration)
The Expected Lead Time is the number of days you have agreed upon with your supplier for a product to arrive after you place a purchase order.
Action: You must manually enter this agreed-upon time into Optiply.
Where to Enter: Go to the Supplier Page, navigate to the Information section, and fill in the Lead time field. (Add screenshot showing the location of the Lead time field on the Supplier Page).
Optiply’s Use: This value is used as the basis for calculating your purchase agenda, ensuring orders are placed in time to prevent stockouts based on the expected delivery date.
2. Average Lead Time (Measured Delivery Time)
The Average Lead Time (days), also known as the Measured Delivery Time, is a value calculated automatically by Optiply based on data pulled from your Warehouse Management System (WMS) or ERP.
How It’s Measured: Optiply tracks two key dates:
The date the Purchase Order (PO) was placed in your system.
The date the PO was received and booked into stock in your WMS.
The average duration between these two events is your Measured Delivery Time.
Why It Matters: The measured time provides a realistic view of how reliable your supplier is. This helps you understand if you need to manually adjust your Expected Lead Time to match reality.
When the Lead Times Differ
It is common for the Measured Delivery Time to differ from your manually entered Expected Lead Time.
Example 1: Early Delivery: If your supplier delivers consistently faster than the agreed-upon seven days, the measured time will be lower (e.g., five days).
Example 2: Delayed Delivery: If you frequently experience delays, the measured time will be higher (e.g., nine days), indicating a risk of late arrival and potential stockouts if the Expected Lead Time isn't increased.
Important Note on Measured Data
Optiply requires sufficient data to display the Average Lead Time.
The Measured Delivery Time will only be displayed once Optiply has registered at least 10 completed purchase order deliveries from that specific supplier.
If the measured time is not displayed, it means Optiply has not yet registered enough deliveries from the connected WMS/ERP. Continue to process orders, and the data will appear once the threshold is met.
❓ Frequently Asked Questions (FAQs)
Should I change my Expected Lead Time if the Measured Delivery Time is different?
Yes, you should always adjust your manually entered Expected Lead Time to reflect the reality shown by the Measured Delivery Time. Using the more accurate, measured data ensures Optiply provides the safest and most efficient purchasing advice.
What happens if I set the Expected Lead Time to zero?
Setting the expected lead time to zero tells Optiply that the inventory is available instantly (e.g., for internal transfers or self-assembled parts). Use this only for products that do not rely on external shipping time.
If the measured time is exactly 10 deliveries, how often is it updated after that?
Once the threshold of 10 deliveries is met, the average measured delivery time is updated continuously (typically daily) as each new purchase order is fully received and processed in your WMS/ERP.
What if the measured time is very inconsistent (e.g., varies from 5 to 20 days)?
High inconsistency suggests high variability in that supplier's delivery speed. You may need to add an extra buffer of safety stock days to your Expected Lead Time to account for this unreliable delivery window and minimise stockout risk.