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How To Calculate Lead Time of An Apparel Export Order?
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How To Calculate Lead Time of An Apparel Export Order?

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In the clothes export industry, the customer specifies the shipment lead time for final products. Sometimes the buyer gives suppliers the task of figuring out the best lead time for orders or gives suppliers a specific lead time to work with, and then both sides agree on a shipping date. The lead times for shipping can vary depending on the product line and order volume.

What lead time means to a supplier and how to determine the wait time for an order are covered in this post.

What does lead time mean in an export order?

The lead time is the interval between getting an order and shipping the product to the customer. Ex-factory date is typically regarded as the shipment date. It is specified in terms of days.

As an illustration, suppose manufacturing got an order on January 1st, 2022, and the buyer requested that it be shipped on March 31st, 2022. The lead time for this order is 30 (Jan.) + 29 (Feb.) + 31 (Mar.) days, which is 90 days.

The buyer should not tell the supplier the lead time (when the product will be available) before placing an order. Instead, they ought to request that the supplier determine and offer a lead time based on the quantity of the order, the length of the process, the supplier's capability, the length of time needed to develop the product, and the time needed to source the materials. How can the supplier determine the lead time for an export order if the buyer does not provide the ex-factory date?

How to calculate lead time?

Below is a step-by-step explanation of the lead time calculating process.

Step 1: Create a list of the procedures and activities anyone must carry out in the specified order.

Making a time and activity calendar is the most effective approach to accomplish this (TNA). They may rapidly create an activity list and determine the lead time using the TNA template. When calculating lead time, one should also have the national holiday calendar and the buyer's holiday list (preparing the TNA calendar).

Step 2: Calculate the duration of each process.

They must be aware of the duration of the preparation work, the sourcing of sample and bulk materials, the approval procedure, production, finishing, and other processes. Determine each process's production capability for the specified sequence. Find the lead time of each procedure based on the processing time. Don't forget to include weekends and holidays when determining the number of days needed for a specific process.

• Start-up time for the process

• a weekly day off,

• Days off in between processing periods.

One might need to request processing time from the buyer or supplier for specific activities (such as lap-dip and sample approval) that are part of an external procedure.

Step 3: Check supplier's lead times for getting different supplies.

Request a delivery guarantee from the supplier. One should plan the PCD date based on sourcing time. Before beginning bulk cutting, they need to wait a few days for fabric approval.

Step 4: Determine the critical processes for the specified order   

Establish the critical path for each process and event. Understanding which operations may be carried out in parallel and which cannot be begun without finishing the prior step is crucial. Take into account working on numerous processes concurrently and overlapping them. They can shorten lead times in this way.

Step 5 Date the beginning and end of each process in the TNA calendar.

As a result, they will receive the order's completion and packaging completion date. Processes for production can be combined. For instance, if the cutting process takes five days, one can begin loading products the same day or the day after the cutting process begins. Similar to stitching, finishing can begin as soon as production parts begin to leave the line, without having to wait for stitching for the entire order to be finished. This will shorten the wait time for manufacturing.

Step 6: Calculate Lead time

calculate

The dates of order receipt, production completion, and finishing completion can be found above.

The number of days needed to travel from one event to the next and note the dates for each occasion.

• List the beginning and ending dates of each procedure that follows a critical path.

• Count number of days between the order receiving date and the shipment date to calculate the total time between the two. For the supplied order, one received a lead time.

Now let’s talk about three ways to reduce lead time in the textile industry.

1. Select a Trustworthy Business Partner for Paper Cone and Tube

Long lead times are frequently the result of inefficiency with the chosen textile packaging partner. Investigating this issue is crucial because of this. When purchasing Paper cones and tubes, choosing the wrong supplier can lead to both longer lead times and subpar finished products.

A trustworthy textile packaging partner will have a factory set up to meet needs, whether someone only needs a single tube or 10 diverse sizes. For textile yarn carrier applications, the right partner will have a tested procedure in place to get the precise size and specification they need.

2. Make the Packaging Vendor Understand Needs

One of the most frequent mistakes that might result in extended lead times for textile packaging is when the partner for paper cones and tubes does not anticipate their recurrent needs. While some customers place orders every two weeks, others do so every two months. We need to be proactive and foresee those incoming orders so that, when they arrive, we can start processing them straight immediately. In the end, this shortens the lead time for our clients.

Being proactive means keeping paper cones and tubes on hand, but it also means keeping the machines in good working order so that they are all available when our clients place their orders. So, let's continue.

3. Maintenance of the vendor’s equipment

The biggest delay may arise in the textile business if the vendor's equipment isn't properly maintained. Never ask, "Will this machine break? When will it break is the question. Longer lead times result in orders being delayed when equipment malfunctions. They should give equipment maintenance such high importance because of this.

Because of this, anyone should never hear their textile packaging partner claim, "Our equipment is currently out of action, but they will begin processing their order right immediately." Don't be afraid to enquire about how the vendor partner maintains their machinery, though.

Now that one understands how to measure lead time and how to shorten lead times in the textile sector, let's move on.

Record dates for each event and the number of days needed to travel from one match to the next. Record the start and end dates of each step that follows the main path.

The number of days between the order receipt date and the cargo date must be taken into account to determine the total distance. For the specified order, anyone obtained lead time.

Conclusion

If someone looking for a dependable apparel export order, then, will be Fashinza. New fashion business owners should give this manufacturing firm great consideration. They have a good understanding of how to calculate lead times and maintain them efficiently. Working with them won't result in any lead-time complications, thus. They supply products of the best caliber at reasonable costs.

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