Lead time in material procurement refers to the duration between placing an order and receiving it from the supplier. Using Dhyey’s Purchase KPI Add-On, businesses can monitor their replenishment process by calculating the average time taken to replenish an item based on the order date and posting date of the purchase receipt. It also enables the comparison of vendor-wise actual lead times, thereby identifying vendors with the most efficient delivery times. Furthermore, the item card and item-vendor catalog show lead time data for easy reference.
In addition, the Purchase KPI Add-On allows businesses to track non-moving or dead stock items that have remained unused over a specific timeframe. Such goods may end up idle in storage locations for an extended period, leading to decreased efficiency and increased costs. This feature enables businesses to monitor items that have remained idle for a specified duration, with no sales or consumption transactions recorded. This helps businesses identify the reasons for non-moving inventories, such as overproduction, defects, QC rejections, customer returns, obsolescence, or expiration, and take appropriate measures to address them.