Reducing logistic lead time

1. Remove Unreliable Suppliers From Your Supply Chain

Do you routinely receive late shipments from certain
suppliers? Keeping them in your supply chain could be
costing you more than finding a different vendor.
However, if you do change suppliers to reduce your lead time,
make sure you’re stocked up with enough inventory to last
you through the changeover.
Furthermore, ensure that your new supplier is prepared to
start sending you products right away.

2. Choose Vendors That Are Closer to Your Warehouse

In today’s global marketplace, you have access to more
vendors than ever before.
Unfortunately, while chasing the best prices across the globe,
you may end up waiting weeks for products to be shipped
overseas. This not only makes your lead time longer but it
also complicates the process of returning faulty or unwanted
products.
One of the easiest lead time reduction strategies for suppliers
is to give priority to vendors that are located close to your
warehouse or manufacturing plant.
3. Share Your Demand Forecasts With Your Suppliers
If you’re in an industry that naturally fluctuates, your orders
may change from month to month.
In order to keep your suppliers prepared for larger-than-
normal orders, let them know that you’re expecting an
increase in demand as early as possible.
This helps to ensure that they’re not only prepared to handle
an exceedingly large order but also prepared to do so as
quickly as possible.

4. Bring External Processes In-House

Do you handle most but not all of your production processes
in-house? Consider increasing your own capabilities so you
don’t have to send your products out to a third party for
completion.
This requires a significant investment upfront, but the long-
term savings (and the permanent reduction in lead times)
generally make this a financially feasible option. Plus, you’ll
be establishing your infrastructure for growth.

5. Automate Your Order Processing Workflows

Once you have your raw materials and are ready to start
production, make sure that your own internal processes are up
to par as well. Consider:
 How long it takes you to get customer purchase
orders into your system
 How long it takes you to move engineering change
orders through production
 How often the process gets held up as a result of
internal miscommunication
  How often orders get lost entirely
If your performance is poor in any of these areas, your lead
times are likely suffering as a result. 
Automating your order processing workflows can help you
get your finished products out the door more quickly.

6. Complete Multiple Processes at the Same Time

Certain processes have to be completed before others can be
started – and there’s just no way around it.
But, if you’re able to identify processes that different
individuals can complete at the same time, you can increase
productivity and reduce your lead time even further.

7. Improve Internal Communications

Order processing is an important process. If you’re not
collaborating well internally,
you may be creating unnecessary delays.
Let’s use order entry as an example.
If there are multiple steps in your process that require input
from several people, you could be spending extra time you
don’t have to.
This is especially true if you’re dealing with paper, which
can’t be tracked. 
Paper-based projects left sitting on someone’s desk increases
your lead time, as well as the likelihood of lost documents.
Even though poor communication is a major challenge to
solve (and often a symptom of other, deeper issues),
manufacturers have several options for eliminating
bottlenecks. One option? A workflow system that
immediately routes order-related documents from one
department or user to the next, while immediately notifying
users that a project requires their attention.

8. Communicate More Effectively With Your Customers

So this doesn’t technically help you reduce your lead time, but
it does help you keep your customers up-to-date while they
wait for their orders.
Since studies have repeatedly found that communication is a
strong predictor of customer loyalty, it’s an important aspect
to consider.