Hi @Vallin98,
1. Supplier Manufacturing Lead Time
The time from recognition of the need for replenishment until the product is ready for shipment from the supplier.
2. External Transport Lead Time
The time from when a shipment is ready for dispatch from the supplier until it is registered as arrived at your site.
3. Internal Transport Lead Time
The time from when the part is registered as arrived until it becomes available for inspection.
4. Internal Inspection Lead Time
The time from when the part is available for inspection until it is available in inventory.
5. Transport Lead Time
Represents the time required to move material from one location to another.
This lead time is mainly used by planning (MRP / Supply Planning) to calculate realistic receipt dates.
6. External Service Lead Time
Represents the time required when a part is sent outside the company for processing (subcontracting), such as:
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Heat treatment ,Coating ,Painting, Calibration
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Relevant only when Outside Operations are used in routings in IFS Cloud
In IFS Cloud, these lead times work together as a continuous chain that determines when material becomes available for use. Supplier Manufacturing Lead Time defines how long the supplier needs to produce the item, after which External Transport Lead Time covers the time to move the goods to your site. Once received, Internal Transport Lead Time accounts for handling from the receiving dock to inspection, and Internal Inspection Lead Time represents the time required to complete quality checks before the part is available in inventory. Transport Lead Time is mainly used by planning as a simplified way to calculate realistic receipt dates when detailed transport steps are not modeled, while External Service Lead Time is applied within routings for subcontracted operations and directly affects production schedules. To make this setup efficient, each lead time should reflect real, observed process durations, be maintained at the correct level (supplier, part, transport mode), avoid hidden safety buffers, and be reviewed regularly so MRP calculations remain realistic and reliable.
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Supplier Manufacturing Lead Time
Base this on actual historical PO data, not quoted targets. Maintain it per supplier and part, and reduce variability by using framework agreements, frozen horizons, and sharing forecasts with suppliers.
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External Transport Lead Time
Differentiate by transport mode and Incoterms. Include customs and port delays, but avoid padding it with safety time - handle uncertainty through safety stock or planning fences instead.
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Internal Transport Lead Time
Keep it realistic, even if short. Reflect real constraints such as shift patterns, warehouse capacity, and handling resources. Reducing internal handoffs and improving dock-to-inspection flow shortens this lead time.
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Internal Inspection Lead Time
Adjust based on supplier reliability and part criticality. Use longer lead times for new or high-risk suppliers, and shorten them through supplier quality agreements, skip-lot inspections, or pre-approved suppliers.
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Transport Lead Time (Planning)
Use this only when detailed transport lead times are not modeled. Avoid double counting by not combining it with external and internal transport lead times for the same flow.
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External Service Lead Time
Include the full subcontracting cycle - queue time, processing time, and transport to and from the supplier. Maintain different values for normal and peak periods to keep production plans realistic.
I hope the above explanation works for you. If so, please mark it as the final answer🙂.
Regards,
Nikila Dissanayake
