Inventory glossary

What is Manufacturing lead time?

Manufacturing lead time is the time a supplier needs to produce goods, measured from when they start the build to when the finished goods are ready to ship.

For a small Shopify store, manufacturing lead time is often the biggest chunk of total lead time, especially if you sell private label or custom made goods. If your supplier needs 6 weeks to manufacture and you only plan for 2, you will run out of stock while production is still happening.

Track manufacturing lead time separately from shipping time. Add them together to get your full supplier lead time, then use that total to set your order-by dates and reorder points so you order before you actually need the stock, not after.

Example

A candle brand orders from a manufacturer that needs 20 days to pour, cure, and pack a batch of 500 candles, then 5 days to ship. Total lead time is 25 days. If the store sells 15 candles a day, it needs to place the order when stock on hand covers at least 25 days of sales, which is 375 units, plus some safety stock on top.

Common mistakes

  • Confusing manufacturing lead time with total lead time and forgetting to add shipping and customs time.
  • Assuming manufacturing lead time is fixed when it actually grows during busy seasons or with larger order quantities.
  • Not asking the supplier for updated lead times before placing a new order, relying on an old number instead.

Manufacturing lead time and SteadyShelf

SteadyShelf uses each supplier's lead time, including manufacturing time, to calculate the order-by date for every SKU so purchase orders go out before stock runs low.

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Related terms

Lead time · Supplier lead time variability · Procurement lead time · Transit time · Lead time demand

Full inventory glossary

FAQ

How is manufacturing lead time different from procurement lead time?

Manufacturing lead time is just the production time. Procurement lead time includes the full process: order placement, manufacturing, shipping, and receiving the goods into stock.

Does manufacturing lead time change with order size?

Often yes. A supplier might need 10 days to make 200 units but 25 days to make 1,000 units. Always confirm the lead time for the specific quantity you plan to order.

Let SteadyShelf do this math for every SKU

Order-by dates per supplier, seasonal forecasts and draft POs for your Shopify store. $29/month after a 30-day free trial.

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