Supremo

How it works

How Supremo Uses Supplier Lead Times

Supremo multiplies average daily sales by supplier lead time to estimate demand between placing and receiving a purchase order.

The operational problem

Inventory must last until the supplier delivers

Current inventory is only sufficient if it covers the delivery period and the chosen safety buffer.

A longer lead time therefore creates an earlier reorder threshold.

The workflow

Lead time in the purchasing cycle

  1. 1Record expected supplier lead time.
  2. 2Use it in the reorder-point calculation.
  3. 3Add an expected date to the PO.
  4. 4Compare actual receiving history with the expectation.

What Supremo provides

Specific capabilities for this job

  • Supplier lead-time records.
  • Use in reorder calculations.
  • PO expected dates.
  • Actual lead-time reporting.
  • On-time delivery reporting.
  • Fill-rate reporting.
Fit boundary: Supremo relies on recorded supplier data and actual PO history. It cannot predict disruptions not represented in that information.

Worked example

At five units per day, a 20-day supplier lead time represents 100 units of expected demand before safety stock is added.

Frequently asked questions

Related Supremo resources

Purchase order guide

See the complete create, send, receive, and close workflow.

Read more

Supplier management

Organize supplier terms, lead times, costs, and performance.

Read more

Know when to reorder

Use inventory and supplier inputs to time purchasing decisions.

Read more

Put the workflow into practice

Connect your Shopify catalog, set supplier and replenishment inputs, and manage purchasing from one place.