Reduce lead time for foreign procurement

Foreign procurement is the process of sourcing goods and services from suppliers outside of one’s home country. It can be a complex and time-consuming process, but it can also offer significant benefits, such as access to lower prices, higher quality goods, and new technologies.

One of the key factors to consider when undertaking foreign procurement is lead time. Lead time is the total amount of time it takes to procure a good or service, from the moment the order is placed to the moment it is delivered to the customer. Lead time can be affected by a number of factors, including the supplier’s location, the mode of transportation, and the customs clearance process.

Consideration

When calculating foreign procurement lead time, it is important to consider the following:

• Supplier lead time: This is the time it takes the supplier to produce or assemble the goods or services. Supplier lead time can vary depending on the complexity of the order and the supplier’s workload.
• Transportation lead time: This is the time it takes to transport the goods or services from the supplier to the customer. Transportation lead time will vary depending on the mode of transportation used and the distance between the supplier and the customer.
• Customs clearance lead time: This is the time it takes for the goods or services to be cleared through customs and released for delivery. Customs clearance lead time can vary depending on the country of import and the complexity of the shipment.

In addition to the above factors, foreign procurement lead time can also be affected by unforeseen events, such as natural disasters, strikes, and political instability. It is therefore important to build in some contingency time when calculating foreign procurement lead time.

4 Tips to reduce Lead time

Here are some tips for reducing foreign procurement lead time:

• Work with reliable suppliers: Choose suppliers with a good track record of meeting deadlines and delivering high-quality goods or services.
• Plan ahead: Place orders with suppliers well in advance, especially if the goods or services are complex or have a long lead time based on supplier production lead time and booking shipment.
• Use expedited shipping: If necessary, use expedited, direct shipping to reduce transportation lead time and avoid transhipment shipping route if possible.
• Work with a customs broker: A customs broker or C&F agent can help you with the customs clearance process and expedite the release of your shipment.