lead time

lead time

Delivery time or Lead Time, is currently a term widely used in the world of logistics, since it allows to determine the duration, from the beginning of an operating process until it ends.

The longer the Delivery Time, the higher the total level of the Inventory.

The Total Inventory must include the available and required merchandise. Longer Delivery Times increase the dependence of the company that makes the orders that have specific predictions. As for a delivery of 24 hours, an error in the order is rectifiable in 2 or 3 days, adopting correction measures. On the contrary, if in an overseas shipment, the orders are erroneous they can be penalized to the company during 6 or more months.

The reduction of Lead Time leads to the reduction of working time, that is, of the Inventory that is generated during the manufacturing process of a product. With the reduction of the Lead Time, the Preparation Time (Set Time), Run Time can be reduced, and there will be a better knowledge of the real capacity of the work center. This knowledge will allow to adjust the waiting and transfer times.

There are several causes of variability in the Delivery Time when measured in calendar days:

For example, the Supplier may have one or two days of closing per week which may increase the delivery time of one or two days respectively;

Also, the variability of the Delivery Time can be caused by the lack of stock of the Supplier. In this case, the supplier must wait until his own inventory is replenished to make the shipment.

Another factor to take into account within the Lead Time is the measurement of the Delivery Time. Because it is variable and time must be tracked for each order and delivery. In short, this allows you to monitor the performance of the supplier and adjust the inventory levels.

Once we have seen everything about the Lead Time, we must bear in mind that some business activities correspond inadequately to orders with deliveries and their times. But to act appropriately would be advisable a training in Logistics to know all the obstacles of transport, storage, trade or legislation.

PROCESS	TIME
Contact with suppliers	1 day
Collection of merchandise	5 days
Grouping of merchandise	1 day
Transportation of goods to point of origin	1 day
Loading of goods at point of origin	1 day
Transport of goods to destination	3 months
Download of merchandise	1 day
Documentation in both countries	5 days
Download of merchandise	1 day
Loading of goods in trucks	1 day
Transportation of goods buenaventura-Bogotá	4 days
Download merchandise in Main Store	½ day
Load in distribution company	1 hour
merchandise delivery	1 day
TOTAL	22 d, 13 h

MODES AND MEANS OF TRANSPORT

Below you can see the starting point and arrival of the merchandise imported from China

Therefore, once the route taken by the goods is identified, the means and modes of transport are identified from the previous traceability that the merchandise will take.

For the first stage of the trajectory of the merchandise, the maritime mode has been selected. This type of transport adapts well to the shipment of large volumes. The maritime transport has two major generic specializations: the transport of divided loads and the transport of massive loads. Ships that transport fractional cargo, also called general cargo, are often used in regular line transport, and those that transport massive cargo are often used in 'roving' traffic. However, combinations of both types of traffic often occur. Thus, there are regular-line and fractional cargo ships that also transport bulk cargo in some of their itineraries.

In addition to the different characteristics of the merchandise transported, the way of contracting and the applicable regulations is different. In the case of fractional load or regular line, it is usual that the shipper has to accept the conditions imposed by the line. On the other hand, in a massive cargo negotiation, it is the free play of the positions of the parties, marked by market conditions.

Regarding the predisposition of the merchandise for boarding, it is important to take into account that maritime international transport uses approved containers (container), with standard measures of 20 and 40 feet in length (6 and 12 meters). There are containers adapted to the different special traffics, such as refrigerators, calorifiers, isotherms, tanks for liquids and gases, hoppers, etc.

Finally, it should be noted that the complexity of transport in general, and maritime in particular, makes it necessary if you do not have sufficient knowledge - request the assistance of the cargo agent.

Through the company CHINA STORE COLOMBIA, the processes of consulting and accompaniment and import management are carried out.

For the second stage the mode used is the land, the means used will be trucks, then the point of departure and arrival of the goods is shown.

The service is offered by the company Ccargas:

ORIGIN	Port of Buenaventura
DESTINATION	Bogotá
COMPANY	Cloads
COSTS	360000 monthly

The third stage consists of the following points:

In this stage the mode of transport continues to be the land means are both the trucks by the company Transport Aranda, and all types of vehicles such as trucks, trucks, small buses, among others by the company Servientrega.

The supply of the goods from the main warehouse to the other two remaining warehouses.

ORIGIN	Warehouse in the Old Candelaria
DESTINATION	Chapinero and Usaquén
BUSINESS	Transportadora Aranda
COSTS	220000 monthly

The distribution of the products to the client

ORIGIN	local
DESTINATION	consumer
BUSINESS	Servientrega
COSTS	6000 per shipment

ROUTE PLAN

TOTAL DISTANCE	517 km
TOTAL TIME	10 h, 28 min

Report points via  Buenaventura – Bogotá

OTHER ROUTE

                                                  

TOTAL DISTANCE	595 km
TOTAL TIME	12 h, 7 min

COST

COST  ROUTE 1
Origin	Buenaventura
Destination	Bogotá
Configuration	Rigid 2 axle truck
Hours load	2
Hours download	2
Ton value	$218082
Travel value	$1962738
Tons max	9
Kilometers route	517 km
Value tolls	$179800

COSTOS  RUTA 2
Origin	Buenaventura
Destination	Bogotá
Configuration	Rigid 2 axle truck
Hours load	2
Hours download	2
Ton value	$218082
Travel value	$1962738
Tons max	9
Kilometers route	595 km
Value tolls	$137500

EVALUATION OF THE ROUTES

The second route established in the planning is more expensive, although the toll charges are lower the distance that the trucks must travel is greater, other factors influence increasing the transport cost of the merchandise so it is still more profitable to opt for the First route since both costs and times are decreased.

The second route can be taken as a secondary option in case there are inconveniences in the route, this route also has a control point less and is that the route in some sections are superior to those of the first route.