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Supply Chain Glossary - V

Supply Chain Glossary - V

vendor lead time also supplier lead time

Syn: supplier lead time.

A means of optimizing supply chain performance in which the supplier has access to the customer's inventory data and is responsible for maintaining the inventory level required by the customer. This activity is accomplished by a process in which resupply is done by the vendor through regularly scheduled reviews of the on-site inventory. The on-site inventory is counted, damaged or outdated goods are removed, and the inventory is restocked to predefined levels. The vendor obtains a receipt for the restocked inventory and accordingly invoices the customer. See: continuous replenishment.

The act of measuring the vendor's performance to a contract. Measurements usually cover delivery reliability, lead time, quality, and price. See: supplier measurement.

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