Average Lead Time
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Pro Tip
To instantly improve your cash flow, focus on compressing internal lead times—such as administrative PO approval cycles and warehouse check-in times—which are entirely within your control and cost nothing to optimize.
Did you know?
In the 1970s, Toyota revolutionized global manufacturing by pioneering the Just-In-Time (JIT) production system, which aimed to compress lead times to near-zero. By systematically eliminating waste and reducing lead times, they drastically lowered inventory holding costs, transforming supply chain management into a major competitive advantage.
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