Lead times

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Introduction

Accurate lead time management is essential for meeting customer expectations and maintaining a smooth order fulfillment process. In Odoo, the Inventory app offers comprehensive lead time settings to help coordinate manufacturing orders, deliveries, and receipts with precision.

 

What Are Lead Times?

 

Lead times represent the number of days required to complete different stages in your procurement, manufacturing, and delivery processes. Odoo supports several types of lead times, each serving a specific purpose.

Types of Lead Times in Odoo

 

Customer Lead Time

 

  • Definition: The number of days between sales order confirmation and the shipping date.
  • Purpose: Ensures realistic delivery commitments to customers.
  • Example: If a product has a customer lead time of 14 days and the order is confirmed on July 11th, the expected delivery date would be July 25th.

Sales Security Lead Time

  • Definition: A buffer (in days) added before the scheduled delivery date.
  • Purpose: Prepares the team to ship earlier, minimizing delays.
  • Example: Setting a 1-day sales security lead time for a delivery originally scheduled for April 6th moves it to April 5th.

Purchase Lead Times

 

Vendor Lead Time

  • Definition: Days needed for a vendor to deliver goods after purchase order confirmation.
  • Setup: Defined per vendor in the product’s Purchase tab.
  • Tip: Multiple vendors can be added with different lead times.

Purchase Security Lead Time

  • Definition: A global buffer to account for supplier delays.
  • Example: If a product’s vendor lead time is 4 days and purchase security lead time is 1 day, Odoo plans the receipt date one day earlier than the vendor lead time.

Days to Purchase

  • Definition: Days required for a vendor to review and confirm a request for quotation (RFQ).
  • Purpose: Ensures timely communication and avoids bottlenecks in ordering.

 

Manufacturing Lead Times

 

Manufacturing Lead Time

  • Definition: Days required to complete manufacturing from MO confirmation to finished product.
  • Setup: Configured in the Bill of Materials (BoM).
  • Note: Includes weekends and holidays.

Days to Prepare Manufacturing Order

  • Definition: Time needed to gather all components for manufacturing.
  • Setup: Found in the BoM’s Miscellaneous tab.
    Clicking Compute automatically calculates the maximum lead time among all components.

Manufacturing Security Lead Time

  • Definition: A global buffer to anticipate possible production delays.
  • Example: A 3-day manufacturing security lead time ensures MOs start earlier than strictly necessary.

How Lead Times Work Together: A Global Example

 

Imagine the following setup:

  • Sales Security Lead Time: 1 day
  • Manufacturing Security Lead Time: 2 days
  • Manufacturing Lead Time: 3 days
  • Purchase Security Lead Time: 1 day
  • Vendor Lead Time: 4 days

Scenario:


Customer order placed on September 1 for delivery on September 20.

 

Odoo’s calculated timeline:

  1. Sept 1 – Sales order confirmed.
  2. Sept 9 – Deadline to order components (based on vendor lead time).
  3. Sept 13 – Components scheduled to arrive (moved earlier by purchase security lead time).
  4. Sept 14 – Start manufacturing (calculated from manufacturing lead times).
  5. Sept 19 – Delivery date moved earlier by sales security lead time.

By combining these lead times, Odoo ensures:

  • Procurement happens on time.
  • Manufacturing starts with all materials ready.
  • Shipments go out without delay.

 

Why Lead Times Matter

  • Customer satisfaction: Accurate delivery dates build trust.
  • Operational efficiency: Minimizes last-minute rushes.
  • Delay mitigation: Buffers absorb unexpected disruptions.

With Odoo’s lead time features, businesses can transform their planning accuracy, prevent bottlenecks, and meet commitments consistently

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