Lead Time

Lead time is the time between starting a process and completing it. In restaurant purchasing, supplier lead time is the interval between placing an order and receiving the goods in a condition ready for use. It affects ordering schedules, par levels, safety stock and the ability to maintain menu availability.

What makes up supplier lead time?

• Order processing: the time the supplier needs to confirm and prepare the order.
• Picking and production: time required to select, pack or manufacture the product.
• Transit: the time required to transport the goods to the restaurant.
• Receiving: time for delivery checks, temperature verification, documentation and put-away.

Examples in restaurant purchasing

A local produce order placed Monday may arrive Tuesday, giving a one-day lead time. A specialty imported ingredient may require several weeks because it involves production, shipping, customs and local distribution. Actual lead time can vary with supplier capacity, holidays, weather and transport disruption.

Lead time versus delivery frequency

Lead time is how long an order takes to arrive. Delivery frequency is how often a supplier delivers. A supplier may have a short lead time but deliver only twice a week, which still affects how much stock the restaurant needs to carry.

Why lead time matters

Long or variable lead times require more planning and may increase the need for safety stock. Accurate lead-time data helps determine reorder points and reduces emergency purchases, stockouts and excess inventory.

Chef’s tip: record actual lead times by supplier and product, not just the supplier’s advertised schedule. Use the variation to plan ordering and backup sources for critical ingredients.