Business Studies

Reducing Lead-time
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Many organizations across the world often work towards the reduction of the Bullwhip effect. This is due to the risks associated with the same. For the minimization of this crucial aspect, there are different mechanisms that have been put in place, thereby reducing the lead-time is one of them. To facilitate the reduction of lead-time, scholars argue that submitting electronic records plays a significant role, and hence should be encouraged. In this perspective, lead time refers to the time lag, of placing and receiving an order. The aim of this essay is to give in-depth explanations of other mechanisms, other than submitting electronic records that can be used to enhance the reduction of lead-time. Below are the explanations.
Using a domestic supplier is another approach that can be used in the reduction of lead-time. Domestic suppliers are always based on the stateside, and hence coordination and flexibility get enhanced. Furthermore, business analysts have always claimed that by the adoption of domestic suppliers, the lead-time is reduced by two or more weeks, which is a significant undertaking in any business environment (Chatfield et al., 2004).
Besides the above-mentioned aspect, lead time can be reduced by enhancing communication with suppliers. By staying in touch during the production process, expectations, goals, and objectives are easily met. In addition, it becomes easier to handle any arising issues, hence minimizing any obstructions that might be the source of delays.

In addition to this, communication is crucial, as it builds trust and understanding between suppliers, distributors and other associated parties, making them committed to the success of the organization. It is therefore important to adopt the above-mentioned strategies, for the minimization of lead time.
Conclusion
There is a strong urge as to why organizations have always sought to reduce lead time. For instance, customers don’t like waiting, and the consequences of extended lead-times. In addition, for manufacturers, consequences of long lead times can be detrimental to their operation ability.
References
Chatfield, D. C., Kim, J. G., Harrison, T. P., & Hayya, J. C. (2004). The bullwhip effect—impact of stochastic lead time, information quality, and information sharing: a simulation study. Production and Operations Management, 13(4), 340-353.