Lead time is the total period between placing an order and receiving the goods, encompassing production or packing, document preparation, transport and customs clearance, and directly shapes stock planning for buyers of frozen fruit, honey and other agri products.
In trade practice
Suppliers state lead times in quotations, typically splitting production lead time from transit time. For frozen fruit, production lead time varies by whether stock is available or requires packing to order. Buyers use realistic lead times to set safety stock levels and avoid out-of-stock situations. A common mistake is quoting transit time only, leaving buyers unprepared for document preparation delays or customs queues.
In a specification
Purchase contracts and quotations should specify production lead time and transit time separately, with the clock starting from the agreed trigger point such as receipt of advance payment or signed order confirmation.