Impact of a Set of Factors on Order Lead Time: A Case Study of an Apparel Company

Apparel supply chain is facing challenges due to recent unexpected market turbulences. This might affect the order lead time with consequences on customers’ satisfaction. It is therefore important to have more control over the supply chain to be more resilient and to respond to market changes. In this context, the distances that products must travel from the production plants can be very significant, influencing order lead times. Consequently, in order to quantitatively measure the effect of distance, as well as other operation independent factors, on order lead time, an empirical model is presented. The data is collected from orders placed by a clothing company that sells its products internationally and outsources production. The results show a significant relationship between lead time, distance or proximity, quantity actually shipped, order cost and product category ordered.