Procurement Glossary
Delivery time: definition, measurement and strategic importance in Procurement
November 19, 2025
Delivery time is a key performance indicator in procurement management that defines the time between the order being placed and the goods being received by the customer. It has a significant influence on planning reliability, stock levels and customer satisfaction throughout the supply chain. Find out below how delivery time is measured, which factors influence it and how you can strategically optimize it.
Key Facts
- Delivery time includes all process steps from order to goods receipt
- Average delivery times vary greatly depending on industry and product complexity
- Shorter delivery times enable lower safety stocks and better cash flow optimization
- Delivery time variance is often more important than the absolute delivery time for planning reliability
- Digital tools and AI-based forecasts significantly improve delivery time prediction
Contents
Definition and meaning of delivery time in Procurement
The delivery time is the period between the order being placed and the actual receipt of goods by the customer. This key figure is fundamental for procurement planning and supply chain management.
Components of the delivery time
The total delivery time is made up of various partial times:
- Order processing time at the supplier
- Production or picking time
- Transportation time and logistics processing
- Incoming goods and inspection time at the recipient
Delivery time vs. lead time
While the delivery time describes the external procurement process, the lead time covers the entire internal production process. Both key figures are of crucial importance for materials planning.
Importance of delivery time in Procurement
Delivery times have a direct impact on inventory planning and capital commitment. Shorter, reliable delivery times enable more precise inventory optimization and reduce the risk of shortages or excess stock.
Measurement, database and calculation
The systematic recording and evaluation of delivery times requires structured data collection and statistical analysis methods. Modern ERP systems support automated measurement.
Data acquisition and measuring points
Defined time stamps are recorded for precise delivery time determination:
- Order time (release of the order)
- Order confirmation by the supplier
- Shipping time and goods issue
- Goods receipt and availability notification
Statistical evaluation methods
The analysis is carried out using various statistical key figures. In addition to the average delivery time, the delivery time variability is an important indicator of planning reliability. Percentile values (P50, P95) provide information on delivery time variability.
Integration into inventory planning
Delivery times flow directly into the calculation of safety stocks and order points. The replenishment time forms the basis for automated scheduling.
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Interpretation and target values for delivery time
The evaluation of delivery times requires industry-specific benchmarks and clear target values. Various KPIs enable differentiated performance measurement and continuous improvement.
Central delivery time KPIs
In addition to the average delivery time, other key figures are also relevant:
- On-time delivery rate
- Delivery time variability (standard deviation)
- Delivery service level by Categories
- Proportion of late deliveries
Sector-specific target values
Target values vary considerably depending on the industry and product category. While just-in-time deliveries with delivery times of a few hours are common in the automotive industry, other sectors accept longer lead times. The delivery service level should be at least 95%.
Performance monitoring and optimization
Continuous monitoring using warehouse key figures and regular supplier evaluations enables deviations to be identified at an early stage. Dashboards and automated alerts support the proactive management of delivery times.
Risks, dependencies and countermeasures
Delivery times are subject to various internal and external risk factors that can have a significant impact on procurement planning. A systematic risk analysis is therefore essential.
Supplier-related risks
Production downtimes, capacity bottlenecks or quality problems at the supplier can lead to unforeseeable delivery time extensions. A diversified supplier base and regular supplier evaluations reduce these dependencies. The implementation of safety time buffers offers additional protection.
External disruptive factors
Natural disasters, political instability or pandemics can have a massive impact on global supply chains. Companies should develop scenario plans and identify alternative procurement sources. Robust inventory management with appropriate buffer stocks helps to bridge short-term disruptions.
Planning risks and countermeasures
Inaccurate demand forecasts or incorrect delivery time estimates lead to suboptimal inventory planning. Regular forecast error analyses and the continuous adjustment of planning parameters significantly improve planning quality.
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Practical example
A mechanical engineering company analyzes the delivery times of its strategic C-parts suppliers. By systematically evaluating 12 months of order data, the purchasing team identifies that supplier A has an average delivery time of 14 days, but a high variance of ±8 days. Supplier B consistently delivers in 18 days with a deviation of only ±2 days. The company opts for supplier B because the higher planning reliability enables lower safety stocks and reduces overall costs.
- Data analysis over 12 months for a well-founded decision
- Consideration of average and spread of delivery time
- Total cost consideration instead of isolated delivery time optimization
Data and market trends on delivery times
The development of delivery times is significantly influenced by technological innovations, market dynamics and global events. Current trends highlight both opportunities and challenges.
Digitalization and AI-based optimization
Artificial intelligence is revolutionizing delivery time forecasting through machine learning and predictive analytics. AI systems analyze historical data, weather conditions and market factors to make more accurate predictions. This enables proactive consumption forecasting and improved planning accuracy.
Nearshoring and regionalization
Companies are increasingly shifting their procurement to geographically closer regions in order to shorten delivery times and minimize risks. This development leads to more stable delivery times, but can result in higher procurement costs.
Real-time tracking and transparency
Modern tracking technologies enable real-time tracking of shipments and significantly improve delivery time prediction. IoT sensors and blockchain technology create new opportunities for supply chain transparency and more precise inventory analyses.
Conclusion
Delivery time is a fundamental key performance indicator in strategic Procurement that goes far beyond mere time. Its systematic measurement and optimization enables more precise inventory planning, reduces capital commitment and improves security of supply. Modern technologies such as AI-based forecasts and real-time tracking open up new possibilities for delivery time optimization. Successful companies take a holistic view of delivery times, taking into account both average values and variability for a robust supply chain strategy.
FAQ
What is the difference between delivery time and lead time?
The delivery time describes the period from the order to the receipt of goods by the customer, while the lead time covers the internal production process from the receipt of materials to the finished product. Both key figures are relevant for procurement planning, but have different areas of application.
How do you calculate optimum safety stocks with fluctuating delivery times?
In the case of variable delivery times, the safety stock is calculated using the delivery time variance and the service level. The formula takes into account both fluctuations in demand and delivery time uncertainty. Modern ERP systems automate this calculation based on historical data.
Which factors influence the delivery time the most?
The main influencing factors are supplier capacities, transportation routes, product complexity and seasonal fluctuations. External factors such as weather conditions, strikes or political events can also lead to unforeseeable delays. A diversified supplier strategy minimizes these risks.
How can delivery times be systematically shortened?
Delivery time reductions can be achieved through supplier development, process optimization, local procurement and digital communication. Long-term framework agreements and consignment stocks can also contribute to a reduction. It is important to keep an eye on the overall costs, as shorter delivery times often mean higher prices.
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