Procurement and RFQs
Lead Time
The time between placing an order and the goods or services becoming available or completed. In maritime procurement, the concept helps buyers and providers define, price, compare and authorize operational requirements.
What lead time measures
Lead time measures the gap between committing to buy and having the goods or service.
It is counted from the order, not from the enquiry. Time spent deciding does not count against it.
In port call work it is judged against the vessel’s window rather than in absolute days.
It varies per item, so a single order can carry several lead times.
Lead Time is a term used in maritime business and operations.
The time between placing an order and the goods or services becoming available or completed.
In maritime procurement, the concept helps buyers and providers define, price, compare and authorize operational requirements. The exact meaning may vary with the contract, jurisdiction, port practice or workflow in which it is used.
What lead time is made of
Stage
Order processing
What it accounts for
The time between the order being placed and the provider acting on it.
Stage
Sourcing or preparation
What it accounts for
Obtaining the goods, or mobilising the people and equipment needed.
Stage
Transit
What it accounts for
Moving the goods to the port, terminal or agent.
Stage
Clearance
What it accounts for
Customs, port access and any permissions required before delivery.
Stage
Delivery to the vessel
What it accounts for
Getting alongside or on board, which depends on berth, anchorage and the vessel’s own availability.
Lead time compared with turnaround time
Lead time
Measured from the order to delivery or completion.
Turnaround time
Measured from the vessel’s arrival to its departure.
Lead time
Belongs to the supply, and is set by the provider.
Turnaround time
Belongs to the port call, and is shaped by berth, cargo and clearance.
Lead time
Answers whether an offer can be delivered in time.
Turnaround time
Answers how long the vessel is tied up.
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