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
What it accounts for
Order processing
The time between the order being placed and the provider acting on it.
Sourcing or preparation
Obtaining the goods, or mobilising the people and equipment needed.
Transit
Moving the goods to the port, terminal or agent.
Clearance
Customs, port access and any permissions required before delivery.
Delivery to the vessel
Getting alongside or on board, which depends on berth, anchorage and the vessel’s own availability.
Lead time compared with turnaround time
Lead time
Turnaround time
Measured from the order to delivery or completion.
Measured from the vessel’s arrival to its departure.
Belongs to the supply, and is set by the provider.
Belongs to the port call, and is shaped by berth, cargo and clearance.
Answers whether an offer can be delivered in time.
Answers how long the vessel is tied up.
FAQ
FAQ
The most common questions we get about Lead Time.
What does Lead Time mean?
The time between placing an order and the goods or services becoming available or completed.
Why do two quotes for the same item show different lead times?
Because providers source differently. One may hold stock locally while another brings it in, which changes the time and often the price with it.
What happens if the lead time is longer than the port stay?
The delivery has to move to a later port, be sent ahead, or be arranged through a forwarder. A quote that cannot land inside the window is not a usable option.