Ecommerce Encyclopedia

‟Ecommerce is a powerful means to connect the unconnected to global trade” - Arancha Gonzalez

How to reduce production time

Production time, also frequently known as lead time, production lead time or manufacturing lead time, could be defined as the period of time in which a retailer’s order is being processed and completed by the manufacturer. Therefore, it is obvious that a short production lead time is better than a long production lead time, which hinders the shopping experience of customers. 

PRACTICES TO REDUCE PRODUCTION TIME 

1. Forecast your demands with your suppliers

If your business is located in a market which has demand flexibility, it is common to find changes in sales during each quarter or month. With that taken into account, you should keep your manufacturers prepared for sudden big orders to ensure high satisfaction for your customers.

2. Communicate with your customers

While customer support does not technically reduce production lead time, it could help deliver a more enjoyable shopping experience for your customers as many business studies have many times proven that communication could ensure customer loyalty. Also given that customer loyalty plays an important role in eCommerce business development, it is essential that business owners should be taking this factor into consideration.

A simple method that could be easily applied is sending automated order notifications via several platforms, e.g SMS or email, so you might want to think of investing in a system for that. 

3. Choose manufacturers that is geographically close to your warehouse

Thanks to the development of technology, you could now have access to more manufacturers than ever before. However, this could make it harder and more time-consuming to pick out the best manufacturer for your business. While pricing is an important factor to keep in mind when choosing a supplier, you should also take shipment time for consideration as well. 

And of course, if your orders are not overseas, your lead time could decrease tremendously by opting for domestic suppliers.