Fiducia TogetherLead time
How long between an order being placed and it being delivered.
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
What it means
Lead time is the elapsed time from order to delivery. It can be broken into procurement, production, and delivery lead times.
Why it matters
It determines how much stock you must hold, how far ahead you must plan, and what you can honestly promise a customer.
What it looks like in practice
Measure actual lead time rather than quoted. The two diverge, and customers experience the actual one.\n\nReducing variability usually matters more than reducing the average — a reliable two weeks beats an unpredictable one.
What to watch out for
Quoting the best case. A lead time met 60% of the time is a lead time that generates complaints.
Where to get proper advice
Your own order-to-delivery data. Your suppliers, asked what their actual lead time has been this year rather than what it says on the website.
Where to read more
Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.