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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.

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What Are Lead Times?

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

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Lead Time Components

ComponentDescription
Processing TimeTime to prepare the order
Transit TimeShipping duration
Receiving TimeTime to receive and stock
Total Lead TimeSum of all components

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Example Lead Time

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

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Types of Lead Times

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Supplier Lead Times

Time for orders from suppliers to reach your warehouse. Configured in: Supplier Settings → Capabilities

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Transfer Lead Times

Time to move inventory between your warehouses. Configured in: Warehouse Settings → Lead Time

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Production Lead Times

Time to manufacture products internally. Configured in: Transaction Settings → Production

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Configuring Transfer Lead Times

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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

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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

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Example Configuration

For a warehouse in New York receiving from other locations:
FromTo NYCLead Time
LA WarehouseNYC5 days
Chicago DCNYC3 days
AtlantaNYC4 days

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The Lead Time Matrix

The lead time matrix shows transfer times between all warehouses.

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Accessing the Matrix

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

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Matrix View

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

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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.

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Lead Times and Supply Planning

Lead times directly impact supply recommendations:

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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

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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.

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Factors Affecting Lead Times

Consider these factors when setting lead times:
FactorImpact
DistanceLonger distance = longer transit
Shipping MethodGround vs. air vs. expedited
Carrier ReliabilityAdd buffer for unreliable routes
Processing CapacityLarger orders take longer to process
Receiving CapacityBusy warehouses take longer to receive
SeasonalityHoliday periods may have delays

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Buffer Time

Consider adding buffer to lead times:

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Why Add Buffer

  • Account for delays
  • Provide safety margin
  • Handle variability

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How Much Buffer

SituationSuggested Buffer
Reliable routes0-1 days
Standard routes1-2 days
Unreliable routes2-3 days
International3-5 days

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Example with Buffer

Actual transit time: 3 days
  • Processing: 1 day
  • Receiving: 1 day
  • Buffer: 1 day = Configured lead time: 6 days

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Lead Time by SKU

Some configurations allow SKU-specific lead times:

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When to Use

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

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Configuration

Set in supplier capabilities or SKU settings.

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Monitoring Lead Time Accuracy

Track actual vs. configured lead times:

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Review Process

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

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Signs of Incorrect Lead Times

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

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Best Practices

When uncertain, use longer lead times:
  • Orders arrive early = extra safety stock
  • Orders arrive late = potential stockout
  • Better to have buffer than shortfall
Update lead times periodically:
  • Seasonal changes (holiday delays)
  • New shipping contracts
  • Route changes
  • Performance trends
Keep notes on lead time configurations:
  • What components are included
  • What buffer is added
  • Why certain routes are longer
For routes with high variability:
  • Use the longer end of the range
  • Consider expedited shipping for urgent orders
  • Monitor closely during peak periods

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Troubleshooting

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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

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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

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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

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Next Steps

Warehouses Overview

Manage warehouse settings

Suppliers

Configure supplier lead times

Supply Plan

See lead times in action

Inventory Settings

Configure fulfillment rules