Setup Transport method on Stock Keeping Units

When you set up items with stock keeping units in Business Central, you can pull the lead time calculation directly from the vendor’s transport method. This means the transport method, transport time, and lead time calculation fields fill out automatically when you enter the vendor number on the stock keeping unit card.

The total lead time is calculated as the vendor lead time (the internal handling time) plus the transport time. For example, with a vendor lead time of seven days and a sea transport time of three months and 14 days, the lead time calculation becomes seven days plus three months plus 14 days.

You can override both the transport method and the transport time on a specific location. If you change the method from sea to air, the lead time calculation updates immediately, for instance from seven days plus three months down to seven days plus two days.

Setting up lead time from the vendor’s transport method

If you have items with stock keeping units and you want to use the vendor’s transport method, you go to the stock keeping unit card and enter the vendor number. Once you do that, the data in the lead time window fills out by itself. The transport method, transport time, and lead time calculation are all populated automatically.

All these numbers come from the setup of the transport method on the vendor card. The vendor lead time is the handling time for the vendor, in other words their internal handling time before the goods leave their facility.

How the lead time calculation is built up

The lead time calculation combines two elements: the vendor lead time and the transport time for the chosen transport method.

Take a stock keeping unit set up on a location basis. Say the transport method is sea transportation and the transport time is normally three months and 14 days. If the vendor lead time is seven days, the lead time calculation becomes:

• Seven days vendor lead time
• Plus three months transport time
• Plus 14 days

This gives you the full picture of how long it takes from placing the order until the goods are available at the location.

Changing the transport method or transport time per location

You are not locked to the vendor’s default settings. You can change the transport method for a particular location, or you can change the transport time directly.

On a specific location you might decide you want the goods shipped by air instead of by sea. As soon as you make that change, the lead time calculation updates immediately. Instead of seven days plus the longer sea transport time, you might see seven days plus two days.

If the change does not reflect reality, you can switch back. For instance, if the actual transport time to a given location is always four months for that particular item, you set it back to sea so the calculation matches what really happens.

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