Summary
There are four components of lead time that StockIQ attempts to measure from receipt history, which are the same four components that StockIQ can accept from the ERP:
- Admin LT
- Manufacturing LT
- Shipping LT
- Putaway LT
These are summed together to make your overall planning lead time. Using supply orders and receipt history, they are calculated as follows for each particular shipment or receipt for which StockIQ has data.
NOTE: Many ERP's or organizations do not have the capability to store all of these dates, so often times StockIQ may calculate 0 for certain lead times if the data is not available from the ERP.
- AdminLT = (Order Release Date - Order Creation Date) - this tells you the delay between when the order was created, and when it was actually released to the supplier. In many ERP systems, this distinction is not recorded, and so it is often 0. These facts come from the supply order data feed.
- Manufacturing LT = (Shipment Ship Date - Order Release Date) - this tells you how long the order was in the supplier's hands before being shipped out.
- Shipping LT = (Shipment Date Delivered- Shipment Ship Date) - tells you how long between the order being shipped, and when it arrived at your shipping dock. This information is in the StockIQ incoming shipment data feed
- Putaway LT = (Shipment Receipt Date - Shipment Date Delivered) - tells you how long between the delivery and actual putaway of your order.
Applies To
All items in StockIQ
Process
StockIQ goes through several steps to calculate the final recommended lead time. After calculating the measured lead times for each PO and receipt (above), several sets of lead time stats are calculated for the following groupings:
- Item-Site-Supplier -- specific history for each item-site-supplier that has receipt data
- Supplier-Item -- supplier + item combos, across all sites
- Supplier-Site -- supplier + site combos, across all items
- Supplier -- supplier lead time stats, across all items and sites.
Future plans call for Supplier + Supplier Category and Supplier + Supplier Location groupings as well.
For each of these groupings, the following process is run:
- Determine if enough receipts exist for the grouping to do a calculation, based on the minimum # of receipts in Global Lead Time Settings
- If so, calculate the average and std deviation for each of the 4 lead time types above.
- Filter out receipt data that falls outside the tolerance range set in Global Lead Time Settings
- Recalculate the average and standard deviation on the filtered data
- Apply the planning pad to each
- The result is the final lead time for that particular lead time type within the group, for example, the filtered, padded Manufacturing lead time for a particular Supplier + Item combo.
Lead Time Assignments
Once lead time calculations have been run, a series of checks is run to decide which lead time should be assigned to a given item-site-supplier, based on the available data. StockIQ starts with the most specific data set available, then falls back to broader groupings of data.
Below are the order of fallbacks for each lead time type:
-
Administration Lead Time
- Item-Site-Supplier
- Supplier-Item
- Supplier
-
Manufacturing Lead Time
- Item-Site-Supplier
- Supplier-Item
- Supplier
-
Shipping Lead Time
- Item-Site-Supplier
- Supplier-Site
- Supplier
-
Putaway Lead Time
- Item-Site-Supplier
- Supplier-Site
NOTE: If the setting in Global Lead Time Settings to allow item-site-supplier level LT's is disabled, then StockIQ does not check the item-site-supplier level LT calculation to begin with.
After each lead time is finally decided for a given item-site-supplier, StockIQ applies the change-versus-ERP-max to each from Global Lead Time Settings, and the result is the calculated lead time that will be evaluated for use by that item-site-supplier versus ERP etc, according to your lead time settings for that item-site-supplier.
Details on the final lead times calculated can be see in the "Lead Time Calculations" tab of the Lead Time Viewer.