As a retailer, every minute can count when you’re supervising your store. A big term that retailers talk about is “lead time,” but what does it mean? This blog will discuss everything you need to know about lead time and why it's so important when it comes to retail operations. Read on for more!
To put it simply, lead time is the total amount of time it takes for a customer order to be fulfilled. It can be for both in-store and online. Lead time starts right when the customer places an order and ends when the customer receives the product. There are of course, several steps throughout this process. The biggest goal for a retailer is to decrease the amount of lead time as much as possible so customers can order and receive what they want instantly. Thanks to eCommerce giants like Amazon, the bar is set pretty high in terms of speedy fulfillment. Retailers that fail to implement a fast lead time can risk losing customers and overall sales.
Lead time is very important in retail operations. The last thing you want as a retailer is to have your customers wait a very long time to get their product. This can result in frustration, confusion, and overall loss of profits. Lead time is a super crucial KPI that can honestly make or break a store’s success. Here are some main reasons why S-Cube Fixtures thinks lead time is important:
As we’ve mentioned, one of the biggest things about lead time is customer satisfaction. Most customers now expect to receive their product as quickly as possible once they’ve placed an order. Faster, accurate deliveries lead to happier customers, which in turn builds loyalty and enhances brand reputation.
Another great thing about lead time is that if it’s done effectively, retailers can avoid understocking and overstocking issues. Lower lead times allow businesses to invest less in warehousing large amounts of stock, resulting in reduced operational costs.
Another problem retailers have to deal with is their supply chain. If lead times aren’t quick enough, there can be delays everywhere, including from the vendor, the manufacturing process, shipping, and more. Being able to streamline all of this for a smoother process can create a more agile supply chain, like a domino effect.
Sometimes, brands and other stores don’t always think about things like lead time. If you’re able to create a fast lead time, most likely, you’ll be ahead of your competitors and set yourself apart from the market.
Even if you have a small store, lead time can be a great thing to focus on as a retailer. Customers like to be able to get their product as fast as possible, and your overall retail operations will thank you. It’s not just about moving products from Point A to Point B—it’s about improving your processes, exceeding customer expectations, and staying ahead in a competitive market. Want to team up with a company that knows all about lead time? S-Cube Fixtures has some of the best and most efficient retail operations and can provide you with custom fixtures and more to make sure you’re perfecting your store. Get in touch with us today!