# What is lead time?

> Lead time is the wait between placing an order and receiving it. Definition, how it feeds reorder points, and a worked example with figures.

Updated 2026-11-06. Source: https://atta.sh/glossary/lead-time

Lead time is the time between placing an order with a supplier and having the goods in hand. It includes the supplier's processing, production, shipping and receiving, and it sets how early you need to reorder.

## Example

A bakery orders flour from a mill. Order confirmed on Monday. The mill packs it Tuesday, the carrier collects Wednesday and delivers Friday, and the bakery counts it in Friday afternoon. Lead time is 4 days.

The bakery uses 25 kg a day. Over the 4 days it uses 100 kg, so it must reorder while at least 100 kg remain, plus any buffer.

Quoted lead time and actual lead time differ. Keep both.

## In Atta

A supplier's catalog entry stores price, minimum order and a quoted lead time per item, along with what the vendor says it has. The stock outlook and runway use those quoted lead times; they don't predict a drive time or a carrier delay.

Supplier scores summarise delivery performance and change nothing. Ordering a purchase opens its shipment, and an inbound with an expected date is late once that date passes, so the gap between quoted and actual is visible. A promise date on an outbound does the same for what you ship.

## Where it hides

Lead time has parts: order processing, production or picking, transit and receiving. Suppliers quote the first three. If your dock takes two days to book in a delivery, that belongs in your number as well.

## Questions

### Should I plan with quoted or actual lead time?

Actual, when you have it. A quoted figure is the supplier's best case.