Transportation Lead Time is the elapsed time from when an order leaves the supplier or manufacturing facility until it arrives at the receiving location. This period includes loading, transit, unloading, and potential delays.Accurate knowledge of transportation lead times is crucial for inventory optimization because it directly affects reorder points, safety stock calculations, and replenishment scheduling. Variability in lead times introduces uncertainty, making real-time tracking and supplier collaboration essential to reduce disruptions and improve supply chain responsiveness.
