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Global Lead Time Settings

Updated

Global Lead Time Settings are settings that apply globally to how lead times are used and calculated in StockIQ

 

Default Lead Times

The first section allows you to specify default lead times.  These are used when no other values are available in the system, such as no ERP-Provided or no StockIQ calculated lead times due to insufficient receipt history.

  • Default Admin Lead Time - used when no Admin LT is available based on the applicable lead time settings.
  • Default Manufacturing Lead Time - used when no Manufacturing LT is available based on the applicable lead time settings.
  • Default Shipping Lead Time - used when no Shipping LT is available based on the applicable lead time settings.
  • Default PutawayLead Time - used when no Putaway LT is available based on the applicable lead time settings.

 

Planning

  • Use ERP Lead Time For Transfers - When enabled, StockIQ will always use the ERP-provided lead times for transfers, rather than any values calculated by receipt history.
  • Plan to Calculated Lead Times - This option enables generating purchase orders based on calculated lead times, as well as setting safety stock values.  When disabled, the calculated lead times are only used for safety stock, thus incorporating supplier performance/variability into the safety stock picture, but when writing PO's, the stated lead time from the ERP is used.  This is necessary in cases when the vendors require you to place PO's to their published lead time (perhaps via contract), rather than their actual performance.

 

Lead Time Calculation

These settings control how the StockIQ calculated average lead times are produced.  For more on the calculation itself, see Shipment/Receipt-based Lead Time Calculations topic.

  • Min Number Of Receipts - Specifies the minimum number of receipts for a given lead time average to be calculated.  For example, a particular item-site-supplier must have this number of receipts to have its own averages calculated, or a particular supplier-site combo must have this number of receipts to have those supplier-site averages calculated.
  • Max Allowable Percent Change - This defines the maximum deviation from the ERP-provided lead time that StockIQ is allowed to do.  So, if one lead time component is 10 days, and this percentage is 50%, then the most StockIQ can adjust is in the range of 5 days to 15 days, e.g. +/- 50% on either side of the ERP provided value of 10.
    • For a bit of additional safety against bad receipt data (which is common in many ERP's, setting this to 1.0-2.0 is a reasonable range. 
    • TIP: Clear out this value, and StockIQ will not be limited to an adjustment from the baseline ERP value.
  • Max Days of Receipts for Lead Times - This allows you to set a threshold on how far back to look in receipt history for lead time, on the assumption that more recent data is of higher value / more accurate for current supplier performance.
  • Outlier Filtering Tolerance (sigma) - When calculating averages, StockIQ first filters outliers from the data before arriving at a calculated value.  Use this sigma to set the tolerance in terms of standard deviations.  3-5 is typically a reasonable range.
  • Recency Weighting (alpha) - This sets how much more recent data points are weighted when calculating the averages.  More recent data is weighted more heavily as alpha approaches 1.0.  We recommend relatively low values here, 0.05-0.30 range.
  • Target Pad Percentile - After the data is filtered and a new average is calculated for your lead time, StockIQ uses this pad percentile to then pad the average with a safety margin.  50th percentile would be exactly your filtered average lead times.  75th percentile is a reasonable value here, covering some, but not all of your lead time variability.
  • Allow Item-Site-Supplier Level Lead Time Stats - When calculating these averages, StockIQ calculates lead times for several groupings of attributes.  See Shipment/Receipt-based Lead Time Calculations for more details.  This option sets whether item-site-supplier specific values are allowed, or if we always start with one of the more aggregated sets, such as Supplier-Item or Supplier-Site etc.
  • Exclude Drop Ships - Excludes from calculations any PO's marked as drop-ship PO's.

 

ERP Lead Time Sync

  • Subtract Putaway Time from ERP Date - When enabled, this option will adjust the date sent on PO's into the ERP by subtracting any putaway lead time, so that the lead time seen in the ERP - and thus by the vendor, is the date they need to have inventory at your door, not the date you expect to have it put away and on the shelf.  This can be necessary when receiving is overloaded and it can take many days to put away inventory physically at your warehouse.
  • Update Planned Receipt Date on Open PO's with Current Putaway Time - In all cases, when the ExpectedDockDate of a PO changes, the PlannedReceiptDate will be updated according to the putaway lead time. When this option is enabled, planned receipt date on a PO will be updated based on CURRENT Putaway lead time, rather than putaway lead time that was stored by StockIQ in the PO data at the time the PO was placed.
    • NOTE: This option only becomes available if Subtract Putaway Time from ERP Date is checked. If you want this behavior to take effect on already open POs, please reach out to Support. 
  • Use Original Date for Supplier Performance - When measuring supplier performance, StockIQ tracks original dates vs expected dates.  If some of the dates are updated (e.g. the expected ship date) you have the option of measuring their performance against the original date (e.g. what they may have initially agreed to), or the updated date, if it was updated for a reason you agree with.

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