Queue Time

TermiKnowledge - Supply Chain, Procurement and Inventory Terminologies
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In most production businesses, the average real "take to production" time for a product or job is comprised of more than 90 percent queuing time. By varying the rate of queuing time that you assign to each job, you effectively control the desired lead time of an order by a significant margin. The faster your warehouse or production facility processes an order, the sooner it will be on its way to your customers and ultimately your profit goals. In fact, the quicker you can process an order, the more profitable it becomes for your company.

If you are experiencing a significant amount of lead time, it's likely that there are many jobs that are not being processed as quickly as they could be. For example, when you use an in-house system, the person who is responsible for processing each order must wait for the operator's return for approval before proceeding with the order. If there are problems, delays, or other performance issues with the processing equipment you are using, this could have a negative impact on the completion of jobs and result in lost revenue for your business. It's important to only allow those operations that are processing as quickly as possible.

If you are using an in-house system, it's important to also manage your own warehouse or production facility's queuing system to ensure that there is plenty of lead time available to do the work that you need done. Your company's in-house system may not be ideal, but it does not require the training and supervision of qualified professionals to properly manage your warehouse's current server queue times. Rather than trying to manually manage the queue system, it's much more beneficial to utilize the lead time management services of an experienced managed service provider. A professional managed service provider can guarantee you a high percentage of lead times that meet your company's goals, which will lead to higher revenues and an increase in profits.

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