Lead time & Supply chain disruptions

   Managing construction projects is no small feat; intricate supply chains and diverse resources all have to come together in the right place at the right time. Tracking material supplies, equipment availability, and labor resources are complicated, and inefficient project resource planning and supplier coordination can be slow and ineffective. 

It can result in material waste, underutilized equipment, and underperforming labor resources, not to mention the increased cost for a project executive or a construction business owner.

How does lead time affect the supply chain?

• So formally, it is an interruption in the flow of goods or services that happens in a supply chain because of what we call a triggering event. For example, if a supplier goes bankrupt, that is, or that can be a major disruption for the buying company that sources from that supplier. Lead time can be summarized as the latency between the initiation and completion of a process. A supply chain is usually involved whenever goods are purchased, transformed or serviced. 

• Lead times are just as important as thinking about future demand. The time normally measured in days between what you decide to do today and the time it takes for the impact of that decision to be felt shapes how our entire supply chain operates. So why are they important? Well, the importance can be seen when you ask why we need to forecast at all. Forecasting stock requirements allows us to prepare for the delay of stock being delivered and helps us do our best to ensure stock-outs do not occur. 

• To do this, the demand planner needs to anticipate how much inventory will be consumed between now and the next replenishment. Whilst taking into account that whilst those goods are in transit, inventory is gradually getting depleted too, as such lead times represent a lower bound of the maximal agility that a company can achieve. As a rule of thumb, a company remains committed to its past decisions rfor oughly the duration of this period logically. 

• It means that the longer the lead times, the higher the risk. If market conditions brutally change. There’s nothing we can do about the container. It is already at sea, slowly chugging its way over to us. So, where do the key challenges lie? Well, often when we have little or no experience on lead times, we rely on what our suppliers promise us; this value often goes unchallenged in its systems for years, and as a single fixed value doesn’t take into account the wide variability we often can experience with our lead time meaning. 

Unfortunately, this approach often falls short because lead times generally follow seasonal patterns such as shipping delays around holidays like the Chinese new year or the lazy summer break in France. Secondly, if a delay occurs, it often can be significant. For example, your supplier has a raw material delivery delay or customs control issues; this is why we take a probabilistic approach to lead Times, which could look a little like this where 90 of the cases, everything runs smoothly, and deliveries arrive within 15 days.

Solution of Lead time and supply chain disruption:

• Construction management software; the software will help you streamline your resource management and supply chain coordination processes so you can always have the right resources available at the right time and place.

• It will help you improve your resource planning using our readiness index technology. It will help to track your resources in real-time and improve resource utilization. You will also keep all project stakeholders on the same page to improve supplier coordination. 
• Construction estimating software easily sets up project workspaces assigns resource dependencies and streamlines your material equipment and labor planning processes using intuitive tools and automation.

• Workflows in the software supply chain, the inbuilt business intelligence analytics, and alert capabilities will help you make the right decisions at the right time resulting in cost reduction and faster project deliveries.

It can result in material waste, underutilized equipment, and underperforming labor resources, not to mention the increased cost for a project executive or a construction business owner.

How does lead time affect the supply chain?

• So formally, it is an interruption in the flow of goods or services that happens in a supply chain because of what we call a triggering event. For example, if a supplier goes bankrupt, that is, or that can be a major disruption for the buying company that sources from that supplier. Lead time can be summarized as the latency between the initiation and completion of a process. A supply chain is usually involved whenever goods are purchased, transformed or serviced. 

• Lead times bias are just as important as thinking about future demand. The time normally measured in days between what you decide to do today and the time it takes for the impact of that decision to be felt shapes how our entire supply chain operates. So why are they important? Well, the importance can be seen when you ask why we need to forecast at all. Forecasting stock requirements allows us to prepare for the delay of stock being delivered and helps us do our best to ensure stock-outs do not occur. 

• To do this, the demand planner needs to anticipate how much inventory will be consumed between now and the next replenishment. Whilst taking into account that whilst those goods are in transit, inventory is gradually getting depleted too, as such lead times represent a lower bound of the maximal agility that a company can achieve. As a rule of thumb, a company remains committed to its past decisions for roughly the duration of this period logically. 

• It means that the longer the lead times, the higher the risk. If market conditions brutally change. There’s nothing we can do about the container. It is already at sea, slowly chugging its way over to us. So, where do the key challenges lie? Well, often when we have little or no experience with lead times, we rely on what our suppliers promise us; this value often goes unchallenged in its systems for years, and as a single fixed value doesn’t take into account the wide variability we often can experience with our lead times. 

Unfortunately, this approach often falls short because lead times generally follow seasonal patterns such as shipping delays around holidays like the Chinese new year or the lazy summer break in France. Secondly, if a delay occurs, it often can be significant. For example, your supplier has a raw material delivery delay or customs control issues; this is why we take a probabilistic approach to lead Times, which could look a little like this where 90 of the cases, everything runs smoothly, and deliveries arrive within 15 days. lead time bias lead time meaning

Also read;- Lead timehttps://en.wikipedia.org/wiki/Lead_time