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Lead time is one of the key parameters affecting device production planning. For displays, however, it covers more than just the time required to manufacture a specific module. It may depend on component availability, the scope of customisation, production schedules, transport and order volume. In this article, we explain what affects lead time and how to factor it into the planning of serial production projects.
What is lead time (LT)?
Lead time (LT) refers to the period between order acceptance and the point at which the product is ready for shipment under the agreed terms.
Lead time should not be treated as a fixed value assigned to a specific product. It depends on factors such as product availability, project requirements, order volume and the scope of any modifications. The actual fulfilment time may therefore vary from one scenario to another – a standard display may be available from local stock or stock in the Far East, or it may require a new production run in a specific configuration. Customised solutions developed for a particular application involve additional considerations.
For orders fulfilled by Unisystem, lead time is always determined based on the individually agreed terms of cooperation. According to our General Terms and Conditions of Sale, the delivery date specified in the order confirmation refers to the date the goods are dispatched from Unisystem. The stated dates are estimates and may change if unforeseen circumstances arise.
This guide is an original Unisystem resource based on questions we receive from our customers. We have brought the answers together in one place to help device manufacturers plan orders, assess fulfilment times and account for production and logistics factors in serial production projects.
What factors contribute to display lead time?
Depending on the product and the order fulfilment model, different factors can affect the overall lead time. Their relevance varies from project to project and may include:
- availability of the display or the components required for its production,
- module production time,
- additional modifications,
- integration of a touch panel and/or protective glass,
- production of a custom FPC or other mechanical and electronic components,
- testing,
- quality control,
- preparation of the order for shipment,
- transport,
- for international deliveries – customs formalities.
For this reason, lead time should always be considered in relation to a specific product, order volume and configuration.
Why can lead time change?
Lead time can be affected by factors at different stages of the supply chain.
One of the most important is component availability. A display consists of multiple elements, including the panel, driver ICs and FPC. Depending on the configuration, the solution may also include a touch panel, protective glass or components developed specifically for a given project. Limited availability of any one of these elements can affect the fulfilment time of the entire module. Other factors include production line capacity, order volume and temporary production constraints, such as planned shutdowns at the manufacturer. Logistics can also play a role – for example, transport availability, the delivery route and the current situation across the supply chain.
For this reason, lead time defined at the beginning of a project should not necessarily be treated as a fixed value throughout the entire product lifecycle.
Demand forecasting and lead time
In serial production projects, one of the key planning tools is a forecast, i.e. a projection of future demand. Sharing expected volumes sufficiently in advance enables us to plan component purchases, production capacity and upcoming deliveries more effectively. This is particularly important for displays and other components with longer production times or limited availability.
A regularly updated demand projection helps align production and delivery schedules with the actual needs of the project and makes it easier to account for volume changes, seasonal increases in demand or planned production scale-ups in advance. Forecasting does not automatically guarantee product availability or shorten order fulfilment time. It does, however, reduce the risk of demand exceeding current production capacity or being communicated too late to secure the required components in time.
Greater predictability of the project schedule also supports more effective logistics planning. In long-term projects, regular demand forecasting can therefore help maintain continuity of production.
Buffer orders and lead time
In serial production projects, one way to reduce the risks associated with long or variable fulfilment times is to use buffer orders. This model involves securing a specified quantity of a product in advance and collecting it according to an agreed schedule. As a result, subsequent deliveries do not have to depend solely on current demand and production lead times. Part of the required volume is already secured, which increases delivery predictability.
This approach is particularly useful in serial production projects where continuity is critical and fulfilment times for subsequent batches may extend to several or even more than ten weeks. The buffer size should, however, reflect actual demand and the project schedule – too little stock may not provide sufficient protection, while too much may lead to excessive inventory.
We discuss buffer orders in more detail in a separate article, including how to determine the appropriate buffer size, plan collection schedules and manage the risks of maintaining too little or too much stock. Learn more: Buffer orders in the electronics industry – how to secure component availability and streamline deliveries?
Impact of transport on order fulfilment time
Products sourced from the Far East require the completion of the relevant customs procedures. We handle these on our side, without involving the customer. Once the formalities are completed, the goods are delivered to our warehouse, where they are verified before further shipment. This is particularly important for products ordered for the first time – an additional quality check allows us to confirm their compliance. The order is then sent to the address agreed with the customer, which may be, for example, the production facility where the devices are assembled.
Products from the Far East can be transported in several ways.
Air freight is usually the fastest, but also the most expensive option, which is why it is mainly used for urgent deliveries or smaller batches.
Sea freight is more cost-effective for larger volumes, but involves the longest transit time and may be more exposed to delays related to port congestion, route conditions or other developments in international transport.
Rail freight offers an intermediate option in terms of both time and cost, although its availability and reliability depend on the specific route and the current geopolitical situation.
Customers sometimes ask us about direct shipment from the manufacturer. This model is not always the most advantageous – it may involve additional formalities on the customer’s side, such as customs clearance, and, above all, significantly higher transport costs. By consolidating shipments on our side, we can reduce these obligations and, in many cases, lower transport costs considerably.
How can fulfilment time become more predictable?
Not all delays can be eliminated, but careful planning can reduce their impact on the project schedule and production continuity. In serial production projects, the key measures include:
- defining demand as early as possible,
- regularly updating projections of future volumes,
- factoring fulfilment time into the production schedule,
- maintaining an appropriately sized safety stock,
- using buffer orders in serial production projects,
- monitoring the lifecycle of key components,
- checking availability before changing order volumes or delivery schedules.
Regular communication between the customer and supplier is equally important. Changes in demand, production ramp-ups or higher volumes may require components or production capacity to be secured further in advance.
This is particularly important for displays, as replacing one model with another often requires changes to the device design. Differences may involve mechanical dimensions, interfaces, FPC, optical parameters or the touch panel, meaning that availability issues can affect more than just the delivery schedule.
Lead time as part of project planning
Lead time is not relevant only to the purchasing department. It can affect the implementation schedule, planning of subsequent production batches, inventory levels, logistics and continuity of supply throughout the project lifecycle.
For this reason, lead time should be considered as early as the display selection stage. Alongside optical, mechanical and electrical parameters, factors such as product availability, the production model, the ability to secure future batches and the expected product lifecycle also matter. For customised solutions, the time required to implement modifications and prepare subsequent batches in line with the approved configuration should also be taken into account.
Considering lead time early in the project makes it easier to plan subsequent stages, maintain continuity of supply and reduce the impact of potential component availability issues on the production schedule.
Looking for a specific display model? Contact us – we will check its current availability and lead time for your project.
