Lead time
Lead time is the elapsed time between placing a purchase order and receiving the goods, usually measured in days. It is a core input to reorder points and safety stock: longer or more variable lead times require larger buffers. Manufacturers also track production lead time — the time to build a finished product from components.
How it's calculated
Measure it straight from your own records, per supplier and per SKU:
Lead time = date goods received − date purchase order placed
Watch its variability, not just the average — an erratic supplier needs more safety stock than a slow-but-reliable one. Manufacturers also separate production lead time (build time) from procurement lead time (sourcing components).
Why it matters
Lead time is the single biggest driver of how much inventory you must carry: every extra day of lead time is another day of demand you have to pre-buy. On Shopify, recording the real received-vs-ordered dates lets your reorder points and safety stock reflect how suppliers actually perform, not optimistic quotes.
Track this automatically
Logistified calculates and monitors metrics like this across your whole Shopify catalog and turns them into reorder alerts and purchase orders.