Procurement time (also procurement duration or procurement deadline ) in materials management , in particular in determining material requirements , is the period of time between the placing of an order or an order for goods ( production material , product or intermediate goods ) and the availability of these goods.
The lead time is made up of the following periods:
- Requirement assessment time (requirement assessment , order quantity decision),
- Order time : time of the order preparation (in-house production) or order ( foreign production )
- Delivery time : Describes the time between the transmission of an order from the customer to the supplier and the receipt of the ordered goods by the buyer.
- Transport time: the time between acceptance by the shipping carrier and receipt by the receiving carrier .
- Storage and control time: The storage time includes the time of physical storage and the accounting entry in the company. The control time extends to the incoming goods inspection and the quality control ( incoming goods).
Critical lead time
There is also the critical replenishment lead time (KWBZ).
For normal purchased parts it indicates the shortened - fastest possible - replacement time. So it is usually shorter than the "normal" replenishment lead time.
For assemblies that are manufactured by the company itself, the KWBZ stands for the time it takes to manufacture the assembly if none of the required secondary requirements are in stock.