WHAT IS LEAD TIME Lead time is the

WHAT IS LEAD TIME Lead time is the amount of time counted from when you start a process to when you finish it. ? Planning Order confirmed Customer LT Storage Materials LT Order materials from Production LT Receive Production start materials Production complete Delivery LT Products are ready to be delivered Customer receive products

WHAT IS LEAD TIME Inventory is a huge concern Customer LT Production LT ROP Production start Materials LT Order materials from suppliers Receive materials Order confirmed Production complete Delivery LT Products are ready to be delivered Customer receive products

PROBLEMS

EXAMPLE IN VIETNAM Another Country

ISSUES Production Extend Leadtime by waiting to produce and replenish the product when stockout Production time is too long No inventory Increase in Lead Time & Price Boost exports Outsourcing is not for domestic Distribution Products sold in Vietnam are products that are re-imported Increase both shipping time and product price

SOLUTIONS 01 Production Material Source Quantity Vietnam China Diversity Solution Search Compare Choose quality suppliers Keep a good relationship Negotiate a good price Guaranteed delivery time Avoid stock out

01 Production Labor shortage Labor quality is low Labor Solution Benefits Wages Invest in labor training Hire laborers in another country

01 Production Warehouse Management Use software to optimize warehouse operations such as WMS

02 Distribution Popular Ecommerce Developed Worldwide Use Ecommerce Cheaper Price E-commerce share of total global retail sales from 2015 to 2023

LEAD TIME ISSUE IN KENYA o Most healthcare supply chains in Kenya are immature and at their infancy. o Many healthcare facilities run short of drugs and long durations before replenishment is done. Traditional supply chain management methods Poor Logistics Lead Time

CONCEPTUAL FRAMEWORK OF KENYA’S PHARMACEUTICAL INDUSTRY Which is the most important? Optimal Planned Lead Time

SOLUTIONS o Ensure the shortest time involved in planning deliveries o Ensure minimal paperwork involved in planning deliveries o Ensure the proper prediction of lead time and involve software for improved management of logistics o Timely delivery of appropriate quantities of drugs

CONCLUSION Lead Time is very important. More time means more costs Who can reduce Lead Time can be the winner in the market

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