Last week we learned the definition of the “replenishment lead time” (RLT), a crucial concept in the procurement world that could help your processes get so much more efficient if you know how to take advantage of it. We also briefly mentioned the factors that influence its calculation and some really important things and notions that you should keep in mind before diving into the topic.
If you have not read our previous BLOGs on the series you can find the first one here and the last one here. Make sure to check those out in order to get all the juicy information we have for you.
And without further ado, let's start with the RLT calculation, the benefits of thoroughly calculating it, and some bonus tips from us.
You already got to know the 5 key determinants for the RLT calculation, and you understand the first three (if you don't find them here). But what about the last two?
Great! Now you know why you would want to be on top of your supplier management, and you have the basic tools to know how to get it done. Let’s review some of the amazing benefits that your enterprise will experience once you start prioritizing these crucial part of procurement:
So yes, being on top of your supplier management and achieving a higher On-Time Delivery percentage is going to take a bit of effort and investment at the beginning. But as you have seen, the results will be more than worth the effort.
We hope you enjoyed these BLOGs and found it useful. Stay tuned for more on this topic.
Contact us if you are interested in how to set up an easy-to-use monitoring tool for your suppliers performance or just want to check if the RLT that your ERP uses for planning is up-to-date.
Until the next time,
your Statistance team.