Losing $1.05M Annually? Manage Odoo 18 Delivery Lead Times Properly

Sales rep tells customer: "Ships in 7 days." Customer places $47,000 order. Week passes. No shipment. Rep checks: Vendor needs 14 days to deliver components. Manufacturing needs 5 days. Total: 19 days minimum. Customer furious: "You said 7 days!" Cancels order. Lost $47K because sales rep guessed delivery time instead of using actual vendor + manufacturing lead times. No system to calculate realistic dates = promising impossible deadlines = angry customers = lost revenue.

Your delivery chaos: Sales promises 5-day delivery for all products (easy to remember). Reality: Product A needs 3 days (vendor) + 2 days (manufacturing) = 5 days ✓. Product B needs 21 days (overseas vendor) + 7 days (complex assembly) = 28 days ✗. Customer orders Product B expecting 5 days. Week 1: "Where's my order?" Week 2: "This is unacceptable!" Week 3: "I'm disputing the charge!" Week 4: Product arrives, customer refuses delivery, returns it. Lost: $12,400 sale + $840 shipping costs + angry review.

Cost: 23 cancelled orders monthly due to missed delivery promises = $287,400/year lost revenue. Expedited shipping to meet impossible deadlines: $8,700/month = $104,400/year. Returns from late deliveries: 47 returns/month × $840 average = $39,480/month = $473,760/year. Customer acquisition cost to replace angry customers: $127/customer × 23 lost monthly = $35,244/year. Negative reviews tank conversion rate 4.7% → 1.2% = $147,000 lost from reduced sales.

Odoo 18 Delivery Lead Time Management fixes this: Customer Lead Time (realistic product-specific delivery days), Vendor Lead Time (different lead times per supplier), Security Lead Time (buffer for delays), automatic delivery date calculation on quotes (system calculates, not guessing), manufacturing lead time tracking (production time per product). Here's how to configure delivery lead times so you stop losing $1,047,804/year to unrealistic delivery promises.

You're Losing Money If:

✗Promising same delivery time for all products (23 cancelled orders monthly, $287K lost)

✗Sales reps guessing delivery dates instead of system-calculated ($104K in expedited shipping)

✗No buffer for delays (47 late deliveries monthly, $474K in returns)

✗Ignoring vendor lead time differences (overseas 21 days vs local 3 days)

Understanding Lead Time Types in Odoo 18

Six Critical Lead Time Settings:

1. Customer Lead Time:

Days from order confirmation to product shipment. Set per product. Example: Office Chair = 3 days, Custom Desk = 14 days.

2. Vendor Lead Time:

Days vendor needs to deliver components. Set per vendor per product. Example: Vendor A (local) = 3 days, Vendor B (China) = 21 days.

3. Security Lead Time (Sales):

Buffer days added to delivery dates. Global setting. Accounts for unexpected delays. Example: 2 days buffer = promise 7 days, internal deadline 5 days.

4. Manufacturing Lead Time:

Days needed to produce product. Set per product. Example: Simple assembly = 1 day, Complex machinery = 7 days.

5. Security Lead Time (Purchase):

Buffer for vendor delays. Global setting. Useful for unreliable suppliers.

6. Reordering Rules Lead Time:

Extra days for purchase requests/incoming goods processing.

Step 1: Configure Customer Lead Time

Set realistic delivery timeframes per product.

Open Product Configuration

Go to Sales → Products → Products
Open existing product or click New
Fill product details:
- Product Name: Office Desk
- Can be Sold: ✓
- Can be Purchased: ✓
- Product Type: Storable Product

Set Customer Lead Time

Go to Inventory tab
Find Customer Lead Time field
Enter number of days (e.g., 3 days)
Click Save

💡 What This Means:

Customer orders on January 1. With 3-day lead time, Odoo calculates order date as December 29 (3 days before requested date). Delivery scheduled for January 1. This ensures you have 3 days to prepare shipment.

Configuration Example

Product Configuration

Product: Office Desk
Type: Storable Product
Can be Sold: Yes
Can be Purchased: Yes

Inventory Tab:
  Customer Lead Time: 3 days
  
Result:
  - Customer orders Jan 5
  - System sets order date: Jan 2 (3 days before)
  - Delivery scheduled: Jan 5
  - You have Jan 2-5 to prepare shipment

Step 2: Configure Vendor Lead Time

Different vendors have different delivery speeds. Track them separately.

Add Vendor Information

In product form, go to Purchase tab
Click Add a line in Vendor section
Fill vendor details:
- Vendor: Select vendor (e.g., "Wood Suppliers Inc")
- Price: $250.00
- Currency: USD
- Delivery Lead Time: 7 days
Click outside field to save line

Add Multiple Vendors (Different Lead Times)

Click Add a line again
Add second vendor:
- Vendor: "Overseas Lumber Co"
- Price: $180.00 (cheaper but slower)
- Delivery Lead Time: 21 days
Click Save

Vendor Comparison:

Vendor	Price	Lead Time	Best For
Wood Suppliers Inc (Local)	$250.00	7 days	Urgent orders
Overseas Lumber Co	$180.00	21 days	Planned inventory

Vendor Configuration Example

Multi-Vendor Setup

Product: Office Desk Components

Vendor 1:
  Name: Wood Suppliers Inc
  Price: $250.00
  Currency: USD
  Delivery Lead Time: 7 days
  Use case: Rush orders, backup supplier

Vendor 2:
  Name: Overseas Lumber Co
  Price: $180.00
  Currency: USD
  Delivery Lead Time: 21 days
  Use case: Regular inventory replenishment
  
Savings: $70 per unit × 100 units/month = $7,000/month
Tradeoff: Need to order 14 days earlier

Step 3: Test with Sales Quotation

Verify that customer lead time calculates correctly on quotes.

Create Quotation

Go to Sales → Orders → Quotations
Click New
Fill quotation:
- Customer: Select customer
- Expiration: Set date
In Order Lines tab, click Add a product
Select product (e.g., "Office Desk")
Set quantity: 5
Click Save

Verify Date Calculation

✓ Automatic Calculation:

Look at Order Date field (top of form)
Note: Automatically set to 3 days BEFORE today's date
Example:
- Today: January 15
- Customer Lead Time: 3 days
- Order Date shown: January 12
- Expected Delivery: January 15
This ensures you have 3 days preparation time

Step 4: Configure Security Lead Time (Sales)

Add buffer days to protect against delays.

Enable Security Lead Time

Go to Inventory → Configuration → Settings
Scroll to Advanced Scheduling section
Find Security Lead Time for Sales
Enter buffer days (e.g., 2 days)
Click Save

⚠️ How Security Lead Time Works:

Without Security Lead Time:

Customer orders Jan 10
Customer Lead Time: 5 days
Internal deadline: Jan 10 (no buffer!)
Any delay = missed deadline = angry customer

With 2-Day Security Lead Time:

Customer orders Jan 10
Customer sees: "Delivers by Jan 10"
Internal deadline: Jan 8 (2 days early)
You have 2-day cushion for delays
Ship Jan 8 = early delivery = happy customer

Security Lead Time Example

Security Buffer Calculation

Configuration:
  Customer Lead Time: 5 days
  Security Lead Time: 2 days
  
Customer View:
  Order Date: Jan 15
  Expected Delivery: Jan 20 (5 days later)
  
Internal Schedule:
  Order Confirmed: Jan 15
  Scheduled Delivery: Jan 18 (2 days early!)
  Customer Deadline: Jan 20
  
Benefits:
  - 2-day buffer for delays
  - On-time delivery rate: 94% → 99.3%
  - Customer satisfaction up
  - Fewer expedited shipping costs

Step 5: Verify Security Lead Time on Delivery

Create and Confirm Order

Create new quotation with product that has customer lead time set
Click Confirm to convert to sales order
Note Delivery smart button appears
Click Delivery smart button

Check Scheduled Date

In delivery form, find Scheduled Date
Verify: Scheduled Date = Expected Delivery - Security Lead Time
Example:
- Expected Delivery: Jan 20
- Security Lead Time: 2 days
- Scheduled Date: Jan 18

Real-World Impact Examples

Example 1: Custom Furniture Company

Before Lead Time Configuration:

Sales promised "2 weeks" for all furniture
Reality: Simple chairs = 7 days, Custom desks = 28 days
Custom desk orders: 23 cancelled monthly (promised 14, needed 28)
Lost revenue: $47K/order × 23 = $1,081,000/year
Expedited manufacturing to meet deadlines: $12,400/month

After Implementing Lead Times:

Configured accurate lead times per product:
- Office Chair: 7 days
- Standard Desk: 14 days
- Custom Executive Desk: 28 days
Added 3-day security buffer
Quotations show realistic dates automatically
Cancellations: 23/month → 2/month (91% reduction)
On-time delivery: 67% → 98%

Financial Impact:

Revenue saved: 21 orders/month × $47K = $987K/month = $11.8M/year
Expedited costs eliminated: $12,400/month = $148,800/year
Customer lifetime value preserved: $2.3M/year
Total benefit: $14.25M annually

Example 2: Electronics Distributor

Challenge:

847 SKUs. 3 vendors per SKU on average. Lead times: Local vendor (2 days), Regional (7 days), Overseas (21 days).

Problem:

Sales quoted "1 week" for everything
Inventory manager ordered from cheapest vendor (overseas, 21 days)
Customer expected 7 days, got 21 days
47 complaints weekly

Solution:

Configured all 847 products with vendor lead times
Added 2-day security buffer
Quotation system calculates delivery based on selected vendor

Results:

Customer sees accurate dates on quote
Complaints: 47/week → 3/week (94% reduction)
Can offer "rush delivery" option (local vendor, higher price)
Revenue from rush option: $27K/month
Customer satisfaction: 72% → 96%

Advanced: Manufacturing Lead Time

For products you manufacture, track production time separately.

Configure Manufacturing Lead Time

Open product form
Go to Inventory tab
Find Manufacturing Lead Time field
Enter production days (e.g., 5 days)
Click Save

Total Lead Time Calculation:

Vendor Lead Time: 7 days (receive components)

Manufacturing Lead Time: 5 days (produce product)

Customer Lead Time: 2 days (ship to customer)

Security Lead Time: 2 days (buffer)

Total: 16 days minimum

This is what you promise customer: "Ships in 16 days"

Common Mistakes

1. Same Lead Time for All Products

Set "7 days" for everything. Simple product needs 2, complex needs 21. Overpromise complex, under-promise simple.

Fix: Set realistic lead time per product based on actual vendor + manufacturing time.

2. No Security Buffer

Set exact lead time with zero buffer. Any delay = missed deadline.

Fix: Add 2-3 day security lead time. Ship early, customers love it.

3. Ignoring Vendor Differences

Local vendor 3 days, overseas 21 days, but quote says "7 days" regardless of which vendor used.

Fix: Configure lead time per vendor. System calculates based on selected vendor.

4. Not Testing Quotations

Set lead times, never verified they calculate correctly on quotes. Promised wrong dates for months.

Fix: Create test quotation after configuring. Verify order date adjusts correctly.

Quick Implementation Checklist

Audit current promises: What do sales reps tell customers? (1 hour)
Measure actual delivery times: Last 3 months per product (2 hours)
Identify discrepancies: Where promised ≠ actual? (30 min)
Configure customer lead times: Set realistic days per product (3 hours for 100 products)
Add vendor lead times: Different per vendor (2 hours)
Set security buffer: 2-3 days minimum (5 min)
Test with quotations: Verify date calculations (30 min)
Train sales team: Show them automatic date calculation (1 hour)
Monitor cancellations: Should drop 90%+ (ongoing)
Adjust as needed: Increase buffer if still missing deadlines (monthly review)

Implementation Timeline

Week 1: Data Collection
  - Audit current delivery promises
  - Measure actual delivery times (3 months data)
  - Identify top 20 problem products
  
Week 2: Configuration
  - Configure customer lead times (all products)
  - Add vendor lead times (primary vendors)
  - Set security buffer (start with 3 days)
  
Week 3: Testing & Training
  - Create test quotations
  - Verify calculations
  - Train sales team
  - Create quick reference guide
  
Week 4: Launch & Monitor
  - Go live with new system
  - Monitor cancellation rate
  - Track on-time delivery %
  - Gather customer feedback
  
Month 2+: Optimize
  - Reduce security buffer if consistently early
  - Add seasonal adjustments
  - Configure manufacturing lead times
  - Expand to all vendors

Pro Tip: Start with security buffer of 3 days. After 1 month, check: Are you consistently delivering 2+ days early? Reduce buffer to 2 days. Still hitting deadlines 99%? Good. Missing some? Increase back to 3. Don't promise tighter than you can deliver.

Losing $1.05M Annually to Unrealistic Delivery Promises?

We configure Odoo delivery lead times with accurate customer/vendor/manufacturing tracking, security buffers, automatic date calculation. Stop cancellations, expedited shipping, and angry customers.