Lead time risk is a predictive risk powered by SourceDay Intelligence. Using our patent-pending ML platform, SourceDay Intelligence uncovers and highlights POs at risk of delay due to an unrealistic lead time before the delay occurs. Lead time risk gives buyers time to resolve or mitigate the risk before it impacts their operations.
How does Lead time risk work?
When new POs are issued, SourceDay compares the new PO to similar orders for that item and supplier comparing:
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- Historical actual lead times
- Recent delivery performance trends
- Seasonal trends
- Supplier characteristics
POs with risky lead times based on the comparison are flagged. SourceDay then provides an expected delivery range in the recommended actions.
Where do I see Lead time risks?
POs with a Lead time risk will be included in your All risk view under Needs attention. Because Lead time risks are detected on new orders you will also see them in your Pending view under PO Lifecycle and other filters that include pending orders.
Any new PO is eligible and will be evaluated for Lead time risk when it is:
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- Created and moved to pending (shared with a supplier), or
- The due date is updated while the PO is still pending.
How do I manage Lead time risks?
SourceDay Intelligence doesn’t just detect unseen risks, it provides recommended paths to resolution.
Click on the red risk in your PO Dashboard and take action.
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Manage the Lead time risk by messaging your supplier. SourceDay will auto fill in the message with details about the risk detected and the predicted delivery range. Once a PO has been acknowledged and the due date confirmed, SourceDay will no longer predict new Lead time risk on a PO.
Manage the Lead time risk by updating your ERP. Lead time risk is detected on each individual PO line, but inaccurate lead times can be a repeat problem due to inaccurate data in your ERP. To check if this is the case, click ‘View lead times for this item’ to see a report that flags items that are consistently delivered outside of their lead times (both early and late). Items that may need lead times updated in your ERP will be listed with an ‘Items Arrive Late’ risk.
Factors that influence Lead time risk
Lead time risk is one possible cause of a delayed order, but is not the only one. All POs are eligible for these risks, but they can be detected more often and more accurately for orders that have:
- Larger item order history
- Larger order volume with a supplier
- Shorter lead times (less than a month)
Question about your lead time risks?
Open a support ticket if you have questions about the factors influing your lead time risks. Our data teams will investigate and reach out.