Lead Time Configuration

Setting up transfer times between warehouses

Lead Time Configuration

Lead times determine how long it takes to move inventory between locations. Accurate lead times are essential for Tether to recommend orders at the right time.

What Are Lead Times?

Lead time is the total time from when an order is placed until inventory is available at the destination.

Lead Time Components

Component	Description
Processing Time	Time to prepare the order
Transit Time	Shipping duration
Receiving Time	Time to receive and stock
Total Lead Time	Sum of all components

Example Lead Time

Order placed Monday
+ 1 day processing
+ 3 days transit
+ 1 day receiving
= 5 days total lead time
= Available Saturday

Types of Lead Times

Supplier Lead Times

Time for orders from suppliers to reach your warehouse.

Configured in: Supplier Settings → Capabilities

Transfer Lead Times

Time to move inventory between your warehouses.

Configured in: Warehouse Settings → Lead Time

Production Lead Times

Time to manufacture products internally.

Configured in: Transaction Settings → Production

Configuring Transfer Lead Times

Accessing Lead Time Settings

1. Navigate to Warehouse

   Go to Inventory → Warehouses

2. Open Warehouse Detail

   Click on a warehouse to open its settings

3. Go to Lead Time Tab

   Select the Lead Time Settings tab

Setting Lead Times

Configure the time to transfer TO this warehouse from other locations:

1. Select Source Warehouse

   Choose the warehouse you’re transferring FROM

2. Enter Lead Time

   Specify the number of days:

   • Total Days - Combined lead time
   • Or break down by component if needed
3. Save

   Save the lead time configuration

4. Repeat

   Configure for each source warehouse

Example Configuration

For a warehouse in New York receiving from other locations:

From	To NYC	Lead Time
LA Warehouse	NYC	5 days
Chicago DC	NYC	3 days
Atlanta	NYC	4 days

The Lead Time Matrix

The lead time matrix shows transfer times between all warehouses.

Accessing the Matrix

Navigate to Inventory → Lead Times (or through Settings).

Matrix View

          To:   NYC    LA    CHI   ATL
From:
NYC             -      5     3     4
LA              5      -     4     5
CHI             3      4     -     3
ATL             4      5     3     -

Editing in Matrix View

1. Click on any cell to edit
2. Enter the lead time in days
3. Changes save automatically

Lead times are directional. NYC → LA might be different from LA → NYC due to shipping routes.

Lead Times and Supply Planning

Lead times directly impact supply recommendations:

How Tether Uses Lead Times

1. Calculates order timing - When to place orders to arrive on time
2. Projects inventory - When incoming stock will be available
3. Generates alerts - Warns when lead time exceeds coverage

Example Calculation

Stockout projected: March 15
Transfer lead time: 5 days
Order should be placed by: March 10

If coverage drops below lead time, you’ll see an urgent alert.

Factors Affecting Lead Times

Consider these factors when setting lead times:

Factor	Impact
Distance	Longer distance = longer transit
Shipping Method	Ground vs. air vs. expedited
Carrier Reliability	Add buffer for unreliable routes
Processing Capacity	Larger orders take longer to process
Receiving Capacity	Busy warehouses take longer to receive
Seasonality	Holiday periods may have delays

Buffer Time

Consider adding buffer to lead times:

Why Add Buffer

• Account for delays
• Provide safety margin
• Handle variability

How Much Buffer

Situation	Suggested Buffer
Reliable routes	0-1 days
Standard routes	1-2 days
Unreliable routes	2-3 days
International	3-5 days

Example with Buffer

Actual transit time: 3 days

• Processing: 1 day
• Receiving: 1 day
• Buffer: 1 day = Configured lead time: 6 days

Lead Time by SKU

Some configurations allow SKU-specific lead times:

When to Use

• Bulky items that ship differently
• Special handling requirements
• Different suppliers for different SKUs

Configuration

Set in supplier capabilities or SKU settings.

Monitoring Lead Time Accuracy

Track actual vs. configured lead times:

Review Process

1. Check transaction history for actual times
2. Compare to configured lead times
3. Adjust if consistently off

Signs of Incorrect Lead Times

• Frequent stockouts despite orders in transit
• Inventory arriving earlier/later than projected
• Alerts don’t align with actual urgency

Best Practices

Start Conservative

When uncertain, use longer lead times:

• Orders arrive early = extra safety stock
• Orders arrive late = potential stockout
• Better to have buffer than shortfall

Review Regularly

Update lead times periodically:

• Seasonal changes (holiday delays)
• New shipping contracts
• Route changes
• Performance trends

Document Assumptions

Keep notes on lead time configurations:

• What components are included
• What buffer is added
• Why certain routes are longer

Consider Variability

For routes with high variability:

• Use the longer end of the range
• Consider expedited shipping for urgent orders
• Monitor closely during peak periods

Troubleshooting

Orders Always Late

Possible causes:

• Lead time configured too short
• Not accounting for all components
• Carrier performance degraded

Solutions:

1. Review actual transit times
2. Add appropriate buffer
3. Consider faster shipping methods

Orders Always Early

Possible causes:

• Lead time configured too long
• Carrier improved performance
• Processing time reduced

Solutions:

1. If consistently early, reduce lead time slightly
2. Early arrivals are usually acceptable
3. Don’t over-correct—keep some buffer

Inconsistent Results

Possible causes:

• High route variability
• Seasonal fluctuations
• Different carriers used

Solutions:

1. Use longer lead time to cover worst case
2. Review carrier selection
3. Consider average + buffer approach

Next Steps

Warehouses Overview

Manage warehouse settings

Suppliers

Configure supplier lead times

Supply Plan

See lead times in action

Inventory Settings

Configure fulfillment rules