The importance of lead time control in the order fulfilment process

This paper reports a study of the order fulfilment process, with a particular emphasis on internal and external lead times, in a speciality chemical manufacturer. Amongst the main findings are that the company has inadequate control of its external lead times. For example, it was discovered that there is no policy on lead times, lead timesare rarely negotiated, lead times are only reviewed once per year and when a supplier gives a flexible lead time it is always the longest one which is entered into the system. It is also pointed out that internal lead timesare affected by a number of inefficient departmental practices, amongst these are those found in the finished goods warehouse, i.e. order picking, product rotation, product shelf life, working environment, communication and performance monitoring.