How to Set Accurate Lead Times for SKUs

Aaron Ethridge

Last Update vor 9 Tagen

Setting accurate lead times for your SKUs ensures timely inventory replenishment and reduces risks of stockouts. 


Follow these best practices and steps to calculate and update lead times in Planster.

Understanding Lead Time

Lead time represents the total duration from placing a purchase order until the inventory is available in your warehouse. It typically includes:

  • Supplier processing time

  • Manufacturing time

  • Transit/shipping time

  • Warehouse receiving and processing time

Step 1: Analyze Historical Data

Review past purchase orders to determine actual lead times:


  • Calculate average lead times from order placement to receipt.

  • Note seasonal variations or supplier-specific delays.

  • Instructions/timelines from your suppliers on their estimated lead times

Step 2: Add Buffer Time

Add extra buffer days to account for:

  • Unforeseen delays (weather, customs, supplier issues)

  • Seasonal fluctuations (peak periods)

Typically, add 5-10% additional buffer time to your average calculated lead time.

Step 3: Setting Lead Times in Planster

To update your SKU lead times:

  • Navigate to the Products tab.

  • Select the product SKU.

  • Enter your calculated lead time (in days) directly into the SKU detail page for each SKU. You can adjust lead time for a single SKU, or multiple SKUs at once. 

Step 4: Regularly Review and Update
  • Periodically revisit lead times and update them based on the latest supplier performance and changes in transit conditions.

  • Adjust more frequently for products with significant seasonal or market-driven variability.

Best Practices for Accurate Lead Times
  • Maintain open communication with suppliers to understand and anticipate lead time changes.

  • Monitor external factors (global shipping conditions, trade regulations) that could impact lead times.

  • Different suppliers may require different lead times for similar products—customize accordingly.


Need Help?

If you require assistance or guidance in setting accurate lead times, reach out to Planster Support—we’re always here to help!

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