In Odoo 19, lead times are essential scheduling factors that assist companies in estimating the completion dates of production, shipping, and purchase processes. Organizations can improve their understanding of the entire supply chain movement by establishing lead times for customers, vendors, and purchases.
- Delivery Lead Time: Also known as "vendor lead time," this is the period of calendar days that passes between a purchase order being confirmed and the products being delivered to your warehouse. It assists companies with procurement scheduling and guarantees that goods arrive in time to fulfil downstream obligations.
- Customer Lead Time: The period of calendar days between the confirmation of a sales order and the products' shipment from the warehouse to the client. It is employed to predict and synchronise internal processes with a delivery date promised to the customer.
- Manufacturing lead time: The amount of calendar days required to finish a manufacturing order from the time it is confirmed until the final product is ready is known as the manufacturing lead time. It makes it possible to schedule the commencement of manufacturing, coordinate component procurement, and oversee downstream delivery.
To help businesses anticipate delays and prevent late deliveries, Odoo 19 also supports buffer times, also referred to as Security Lead Times. By putting these parameters in place, your operations teams can improve customer happiness and reliability by coordinating production, shipping, and purchase dates with practical restrictions. Therefore, a key component of efficient replenishment and fulfillment planning in Odoo 19 is an understanding of lead times.
Advantages of using Delivery Lead times in a business
- Better inventory planning and fewer stock-outs: By knowing when products will arrive, you can more accurately schedule orders and replenishments, lowering the chance of running out of essential items.
- Reduced carrying and storage costs: You may keep inventory levels lower and tie up less capital in stock when lead times are shorter and more predictable.
- Improved customer satisfaction and dependability: when deliveries go as planned, clients have more faith in your company, which fosters reputation and loyalty.
- Enhanced operational agility: You can react to changes in demand more quickly, plan production or procurement more efficiently, and adjust to market fluctuations with precise delivery lead times.
- Improved cash flow: Quicker turnover, less capital invested in waiting inventory, and better cash conversion cycles are all results of speedier goods receipt.
- Competitive advantage: Companies that effectively monitor and control delivery lead times can beat their peers by providing quicker fulfilment, reduced costs, and improved dependability, which increases their appeal to partners and customers.
Let's examine the Odoo 19 Purchase module's Delivery Lead Time capabilities, emphasizing how to set up the anticipated arrival date of products and factor in buffer days for supplier delays. By enhancing procurement planning and lowering the possibility of late deliveries, these options assist you in more precisely scheduling orders and receipts. Your team can better manage supplier timeframes and proactively handle unanticipated delays by utilising both functionalities in tandem.
Lets configure Delivery Lead time first. With the option to specify distinct lead times for various vendors, Odoo 18 offers a user-friendly method for configuring product delivery schedules. Businesses can give customers a more realistic expectation of when their orders will arrive by establishing these delivery schedules.
Go to the Odoo 19 Purchase module's Vendor Pricelists and make or modify a new vendor pricelist to activate this feature. You can then adjust the delivery lead time settings to suit your company's needs.
So click on the New button. Here the Vendor is Abigail Carter. Add the other details like Vendor Product Name, Vendor Product Code, Product, Quantity Discount etc. and the users can set the Delivery lead time also.
10 days is the delivery lead time in this case. This indicates that the laptop will be delivered by seller Abigail Carter 10 days from the date of order. Save the price list.
Then the created pricelist can be viewed from the product. Open the product Laptop and check the purchase tab. To add a new vendor price list, click on the Add a line button.
Then let's move to RFQ. Create a new Rfq. The vendor should be “Abigail Carter”. And choose the product Laptop inside the orderline.
Then check that the Order Deadline is set as October 30th, and the Expected arrival date is automatically updated as November 9th, which means 10 days after the order date.
Confirm the order and open the Receipt. While checking the receipt it's clear that the transfer is scheduled to November 9th (10 days after the order confirmation date).
Businesses may more precisely plan their inventories and procurement by controlling delivery lead times with Odoo 19 Purchase. Businesses can predict delays, optimise stock levels, and prevent supply chain interruptions by monitoring and evaluating lead times. In the end, effective lead time management enhances supplier collaboration and operational efficiency.
To know more about the above-mentioned Vendor Price list in Odoo 19 Purchase, refer the blog: How to Improve Purchase Efficiency with Vendor Pricelists in Odoo 18.