Customer Lead Time

It is a time or period ranging from the time when a customer orders some goods from a store or a salesperson to the time when they are delivered to the customer. Thus, i.e. when the goods are on the store shelf, the Customer Lead Time is only a moment from wrapping them to handing them over to the customer. But when they are not there, the Customer Lead Time includes the time for packaging and transportation because the goods should be ordered from a factory. Regarding special order goods, they are made according to the specifications of the customer, and thus the Customer Lead Time would need several months including not only packaging and transportation but also manufacturing and logistics of parts and materials. From the standpoints of manufacturers and shops, it is a critical element as a marketing strategy to reduce the Customer Lead Time.


Related term: Lead Time