Lead Time
Lead Time refers to the total duration between when a shipment order is placed and when the goods are delivered to their destination. In logistics ERP systems, lead time is tracked across various stages: booking, dispatch, transit, customs clearance, and final delivery. It serves as a critical KPI for evaluating performance, planning resource allocation, and ensuring customer satisfaction. Shorter, predictable lead times enhance competitiveness, while delays often signal process inefficiencies or disruptions.
How Lead Time Works in Logistics?
When a logistics job is initiated, ERP timestamps are generated at each operational milestone, such as pickup, warehousing, loading, and delivery. The system calculates lead time by measuring the interval between the order date and the actual delivery date. This data is recorded automatically or updated via integrations with carriers and warehouse systems. ERP tools can also compare actual lead times to promised service levels, helping logistics teams manage expectations and identify bottlenecks.
Logistics Leadership in ERP Systems
Strategic Planning
Lead time metrics help planners forecast delivery windows, manage inventory buffers, and choose the most reliable carriers and trade lanes.
Operational Efficiency
By analyzing lead times across jobs, teams can detect delays early and implement faster routing, scheduling, or customs strategies to improve throughput.
Resource Optimization
Consistent lead time tracking allows better coordination of warehouse labor, equipment scheduling, and inventory handling to avoid downtime and congestion.
Technology Integration
ERP systems sync with transport, warehouse, and customs platforms to capture milestone timestamps in real time, ensuring data-driven visibility.
Performance Monitoring
Comparing actual vs. target lead times enables data-backed service reviews, SLA audits, and continuous process refinement for all logistics flows.
Conclusion
Lead Time is a foundational performance measure in logistics ERP systems, shaping how companies manage delivery promises and client satisfaction. By capturing real-time progress and automating time comparisons, ERP platforms help logistics providers act swiftly, plan confidently, and stay ahead in a time-sensitive industry.