Improve Company Lead Times with PostNord

Lead times have a great influence on a company’s profitability and are thus a crucial competitive factor to consider. Here’s a quick guide to what lead times are, what factors influence lead times, and why they matter. You’ll also get advice on how to optimise your company’s lead times using PostNord.

What are lead times?

Lead time refers to the time it takes from when an order process starts, to when the customer receives their delivery. Unlike delivery time, lead time doesn’t just refer to the time it takes to send something from sender to receiver, but the entire process of producing and/or packaging the product.

See also: What is Supply Chain Management?

Why are lead times so important?

What lead times a company have is crucial to how well it will survive in a competitive market. The shorter the lead time, the better. The reasons for this are numerous, but primarily:

  • Customers in general expect fast delivery and value companies that can offer it
  • Shorter lead times lower warehouse costs and increase turnover
  • The faster products can reach customers, the less space there is for the customer to change their mind, that a best before date expires, or that something happens that leads to the product no longer being in demand.

In short, lead times are all about taking action while the iron is hot. To respond to an enquiry and need as soon as possible, to avoid the risk of fast changes.

How you can optimise your company’s lead times with PostNord

If you want to improve your company’s lead times you need to go over the entire production and delivery chain. How long a lead time is depends on everything from access to materials and the production method, to packaging and shipping.

If you sell physical products, transport from warehouse to customer plays an important part in the total lead time. Thus, it’s beneficial to be careful with the shipping method of choice – and to work with a reliable logistics partner. As the leading supplier of shipping and logistics solutions for businesses in the Nordics, we at PostNord can help you reduce lead times thanks to several smart business services.

By getting an account in PostNord Portal Business – which is free and only takes a minute – you can, among other things, use features like:

Schedule Pickup

Schedule pickup of outgoing deliveries straight from your warehouse or factory. You choose the time and date – we pick up the goods accordingly.

Skicka Direkt Business

Purchase shipping quickly and easily with Skicka Direkt Business. Register receiver, pay directly in the portal, and print your shipping labels all at once.

Integration solutions

Connect your business system or e-commerce store using our integrations to automate the purchasing of shipping, reduce administrative work and achieve shorter lead times.

Do what thousands of other Nordic companies do – reduce your lead times and improve profitability with PostNord.

If you want to learn more about distribution, shipping and other parts of the logistics chain, don’t miss our expansive collection of articles on logistics.

Frequently asked questions about lead times

How are lead times calculated?

The calculation is done using a lead time analysis, in which components that affect the lead time are considered and evaluated.

What is a good lead time?

This varies between industries, markets, and products. A good lead time is generally one that is comparable, or better, than that of the competitors.

When should I review my lead times?

Lead times are a crucial competitive factor in a market climate that is constantly evolving. Therefore, they should be reviewed and analysed continuously.