Lead time is an important aspect of managing your product stock. You have to factor in the lead time to maintain a consistent supply chain. In the handbag manufacturing industry, managing the lead time requires special consideration because of the prevalence of international shipping.

But how do you manage lead times and production schedules for handbags? Is there a way to find a consistent lead time for your orders? In this article, we'll explain everything related to lead time in the handbag manufacturing sector.

What Is Lead Time?

We’re sure most of you have a general idea of what a lead time refers to. But to make sure we’re all on the same page, let’s go over the basic description one more time. Lead time refers to the time it takes to complete a process. 

Lead time varies for different entities in the consumerist supply cycle. For the manufacturer, the lead time usually refers to the delay between placing their order for the raw material to the production of the product. From a seller’s perspective, the lead time refers to how long it takes for the manufacturer to deliver the finished product to them. 

Regardless of whether you’re a manufacturer or a seller, the functions of lead time are identical. The ways of managing the lead time are also extremely similar for all entities. At its core, lead time is fundamentally a logistics factor. You can easily plan around this variable once you know how.

Why Is Lead Time Is Important For Inventory Forecasting?

Handbags are part of fast fashion, and they're a time-sensitive market. Some designs sell well during specific times of the year, so lead time plays a very important role in Handbag markets.

For one thing, you need to account for the lead time when planning your inventory for a season. If you order too late, then you'll miss a crucial sales window due to the time lag between order and delivery. It's also a problem to order too early because then you'll have to hold on to that stock for additional time, which means wasted storage space.

Lead time is also important for the calculation of risk management. This specific market has significant competition, so in order to capture the market, you need strategic product placements. The entire investment strategy will go down the drain if you don’t account for the lead time.

Things That Affect Lead Time

Lead times can vary based on several factors. Some, you can control with a streamlined supply chain, but many are often arbitrary and can change based on geopolitical situations. Here are some of the important ones you should keep track of:

Customs

Customs is one of the most convoluted supply chain components in international trade. It's a time-sink if you don't have everything sorted out properly. This is partly why it's important to partner with a reliable manufacturer. Experienced manufacturers can usually handle customs formalities much more effectively.

That said, you don’t need to worry about customs clearance if you source from local suppliers. But it’s often still economical to hire more efficient overseas manufacturers instead, despite the customs delays.

Transportation mode

The next thing that affects the lead time the most is the shipping delay. Long shipping time is unavoidable with international manufacturers. You could opt for a faster shipment by using air freight, but those are usually more expensive, and less carbon-efficient than sea freight. Most eco-friendly businesses avoid that. 

The transportation delay is inevitable no matter where you order and source from. Even local suppliers have shipping delays albeit much less than the international manufacturers. But historically, international shipping lines of Asian countries like Cina, have been much more consistent than local sources because they operate on a very streamlined route.

Manufacturer Reliability

The manufacturer's reputation and skill in managing their operation are also crucial for a seamless supply chain. If they fail to create the product on time, even the most flawless shipping route can't get it to you on time. That's just how things are. So, it's always important to find a reliable supplier before establishing a partnership.

It’s also a good practice to have a secondary manufacturer in case of unforeseen events, like natural disasters, or political unrest. While delays related to such events are rare, the possibility still exists. 

Ways You Can Manage Lead Time Effectively

There’s no real way to take lead time delays off the equation unless someone invents a teleportation technology. Lead times are a constant part of inventory and logistics in any business, much like the designer handbag industry. 

There are, however, ways you can play around its scope of influence. The first thing you can do is plan ahead. Account for the delay, and place your orders accordingly so that by the time your shipment arrives, you can start selling the bags.

You can also streamline the process further by establishing a better collaboration with your supplier. Most suppliers will listen and change the manufacturing process to accommodate your needs. But you need to communicate with them clearly. This helps establish trust and also minimizes unforeseen disruption in the supply chain due to miscommunication. 

You can also make up for lead time delays by making your inventory more efficient. Streamlining every stage of the supply chain will give you enough room to negate the effect of the lead time.

Conclusione

Hopefully, this article shed some light on how do you manage lead times and production schedules for handbags. To recap, lead times are a constant in any manufacturing supply chain, and there’s no way to get rid of them. Lead times are affected by distance, supply method, and the competency of the manufacturer.

You can effectively work around the lead time delays by improving your overall inventory management. But still, the most crucial factor is having a reliable manufacturer. We, at Slbag have been manufacturing designer handbags for many years now, so feel free to reach out if you need anything.