Manufacturing lead time is a crucial factor to take into account when looking to expand your business. In this article, we will provide you with a comprehensive explanation of what it is, how to calculate it, and ways to minimize it.
- Understanding Manufacturing Lead Time
- Reducing Manufacturing Lead Time
- Let Onestopimport help you conduct factory audits.
Understanding Manufacturing Lead Time
Manufacturing lead time, also known as production lead time, refers to the time it takes for a factory to receive an order and complete it. This includes producing samples, purchasing raw materials, bulk production, and packaging.
For importers, manufacturing lead time is crucial. By calculating it along with shipping time, importers can determine when they will receive their goods. This information helps them plan their sales and inventory.
For example, an Amazon seller who imports products from China and wants to sell them during peak season needs to ensure that the products are manufactured on time. If there is a delay, the seller will miss the peak season, and the products may get stuck in the warehouse, leading to a significant loss.
To avoid this, some importers include the manufacturing lead time and a solution for delays in the contract. This helps to ensure that the factory meets the agreed-upon timeline and protects the importer’s business interests.
Calculating Manufacturing Lead Time
In practice, manufacturing lead time is generally calculated in a general sense. This is because there is no set period of time for each process. For example, if we look at the production of 1,000 customized hoodies, it usually takes 15-20 days to complete.
Once the purchase contract is signed, the manufacturing lead time begins. The formula for calculating it is:
Manufacturing lead time = pre-production sample and confirming time + purchasing raw materials time+ manufacturing time + packaging time
Pre-Production Sample and Confirming Time
Before mass production, a pre-production (PP) sample is made to ensure that the product meets the importer’s requirements. The PP sample is used to check the size, fabric, pattern, color, logo, etc. This sample must be approved before bulk production begins to avoid errors or misunderstandings. Making and delivering the PP sample takes some time.
Purchasing Raw Materials Time
The factory needs time to purchase raw materials according to the contract. This usually doesn’t take long, as factories often have long-term, cooperative suppliers. However, in some special conditions, such as when a product suddenly becomes popular and leads to a shortage of materials, this period of time may be longer.
Mass Production Time
Once the PP samples are approved, mass production can begin. This period of time covers a large part of the total manufacturing lead time because there are many production stages involved in the manufacturing process. Additionally, the mass production time varies for different products, which have different manufacturing techniques and procedures.
If customized products are in high demand, the manufacturing lead time is often longer. For example, Bing Dwen Dwen, the Beijing 2022 Olympic Mascot, became popular once the Olympics began on February 4th. Chinese factories are now fully occupied with back orders scheduled for the end of March.
Packaging Time
When production is complete, workers package the products. This doesn’t take much time and depends on the complexity of the packaging methods and work efficiency.
In real business, manufacturing lead time delays can occur. The factory may cite reasons such as a shortage of labor, environmental inspections, or power rationing policies.
Aside from these objective reasons, another reason could be that factories prioritize big orders or complete orders with pre-payment first before finishing others when they have time. We’ll explain how to address this problem in the next section.
Reducing Manufacturing Lead Time
Choose Reliable Factories
Choosing a reliable factory is the first step in reducing manufacturing lead time. Many methods on Google can help you distinguish between reliable and unreliable factories, but the most effective way is to conduct a factory audit. This helps you better understand the factory’s production conditions, scale, capacity, quality control, etc. These are all key factors that determine whether your products can be finished on time and with high quality.
Onestopimport can help you conduct factory audits and issue reports. Based on years of experience in dealing with factories, we can make an accurate judgment about whether a factory has the capability to manufacture your product. Alternatively, you can use our supplier resources. They have all passed our factory audit and worked with us many times. They perform professionally and reliably throughout the entire process, helping to ensure that your order production is completed on time.
Let Onestopimport help you conduct factory audits.
Ask Your Agent to Follow Up on Production and Control Lead Time
Following up on the entire manufacturing process by yourself can be time-consuming. Therefore, it’s a good idea to find a sourcing agent. Onestopimport can help you supervise the entire process while manufacturing. We confirm with the factory about production every 10 days and push them to complete the goods on time. We also conduct product inspections to ensure that no problems occur in the end.
Additionally, Onestopimport can help you confirm the details with the factory, such as the requirements for packaging, labels, and shipping marks. We ensure that the factory has a good understanding to avoid modifications and rework. Each modification can delay production by three working days, so it’s best to avoid them.
Suppose you’ve paid the deposit and the factory is ready to purchase material, but they can’t work because of COVID-19. In that case, we can help you find other factories in different regions. We have a rich and long-term cooperative supplier network for assistance. We can help you solve all problems occurring in the manufacturing process, ensuring that your products can be finished on time.
