lead time
Definition
Lead time is the amount of time between placing an order and actually receiving the goods or services. In contracts, this term sets clear expectations about how far in advance you need to request something before your supplier or vendor can deliver it.
Example
If your supplier has a 30-day lead time on custom packaging, you need to place your order at least 30 days before you actually need those boxes in your hands.
Watch Out
Always get lead time commitments in writing because a verbal promise of two weeks can quietly stretch to six weeks during busy seasons, leaving you unable to fulfill your own customer orders.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.