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Your ERP lead times are probably wrong.

Lead times are set once and rarely updated. Here's how to measure the real ones from your own receipts.

WERISCO editorial18 August 20266 min

Planned lead time in the ERP is one of the most influential numbers in the entire planning system. It drives order dates, safety stock and material availability checks. It is also one of the least maintained.

How to measure real lead time

  • Take PO creation date and goods receipt date from your own history.
  • Compute the distribution per supplier and material, not just the average.
  • Compare with the ERP setting; flag differences above a threshold.

Why variance matters more than average

A supplier that averages 21 days but ranges from 14 to 40 needs a very different buffer from one that reliably delivers in 24. Safety stock should reflect the spread.

The average lead time plans the order. The variance decides whether it arrives in time.
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