Inventory glossary

What is Transit time?

Transit time is the number of days it takes a shipment to travel from a supplier's dock to its destination, once it has left the supplier.

Transit time is one piece of total lead time. If you only track the time a supplier takes to make or pack an order, you will underestimate how long it actually takes stock to land on your shelf, and you will reorder too late.

Small store owners should ask each supplier for both production time and transit time separately, then add them together. This split also helps when a supplier changes carriers or shipping method, since transit time can shift even if production time stays the same.

Formula

Lead time = Production time + Transit time

Example

A candle supplier takes 5 days to make and pack an order, then ships it by ground freight which takes 4 days to arrive. Production time is 5 days, transit time is 4 days, so total lead time is 9 days.

Common mistakes

  • Treating quoted lead time as transit time only, and forgetting production time.
  • Not updating transit time when a supplier switches from air to ocean freight or changes carriers.
  • Ignoring customs delays or holidays that can stretch transit time beyond the usual average.

Transit time and SteadyShelf

SteadyShelf uses each supplier's full lead time, including transit time, to calculate the order-by date for every SKU.

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Related terms

Lead time · Supplier lead time variability · Procurement lead time · Reorder point · Incoming inventory

Full inventory glossary

FAQ

Is transit time the same as lead time?

No. Lead time includes the supplier's production or pick-pack time plus transit time. Transit time only covers the shipping leg after the order leaves the supplier.

How do I find my transit time?

Check past purchase orders and compare the ship date to the date stock was received. Doing this for a few orders per supplier gives a realistic average.

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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