Lead Time Ordering is a business concept that refers to how long it takes for a company to receive an item they ordered from a supplier. It’s important to understand lead time ordering when planning and scheduling business operations, as well as taking steps to create a cost-effective supply chain. By getting an estimate of the lead time associated with any order you place, you can more accurately plan for production, delivery and other tasks associated with each purchase. With proper lead time ordering in place, companies can maximize their efficiency and effectively manage resources.