Lead time is an optional configuration for shipping time at SKU level. This means that you can set a shipping period for a warehouse SKU, and this time will be added to the order's total shipping time.

Lead time configuration is done within inventory management as it relates to items in a warehouse that are available for sale.

This article covers the following:

• Total shipping time: How lead time affects the order's shipping time.
• Main use cases: Scenarios where lead time can optimally apply.
• SKU availability: How the platform behaves when the SKU is unavailable for sale.
• Configuring lead time: How to configure lead time through the VTEX Admin.
• Configuring lead time calculation in calendar days: Optional step for the lead time calculation to be in calendar days, not business days (default).

To configure lead time via API, see Update inventory by SKU and warehouse.

When configured, the lead time is an additional time comprising the shipping time for the order displayed to the customer at checkout. The image below shows how the total time is calculated:

• Lead time: The amount of time that can be configured for a warehouse SKU. For example, this period could correspond to the item's handling or manufacturing time. This configuration is optional and, by default, is set as zero days
• Warehouse time: Time the SKU takes to leave a warehouse and arrive at a loading dock. This configuration is required, but you can set the time to zero.
• Loading dock time: Time the SKU takes to leave the loading dock, the point between the warehouse and the carrier, and be shipped to the customer. This configuration is required, but you can set the time to zero.
• Shipping policy: Gathers the rules and conditions displayed to customers at checkout, including:
  • Shipping rates
  • Carrier business hours
  • Delivery windows
  • Delivery capacity
  • Types of deliverable products (modals)

Here are some use cases where the lead time setting is particularly useful.

Easily manage the time a third-party supplier, such as a factory or manufacturer, takes to produce, handle, ship, or deliver a product.

For operations that sell large products, such as furniture or customizable products, lead time enables them to manage product handling time, contributing to warehouse and dock management efficiency.

In dropshipping — when the supplier ships the product directly to the customer — configuring shipping time at SKU level means having more flexibility to set deadlines for handling and shipping the product from third-parties.

The VTEX platform will behave differently depending on SKU availability, and these are the possible scenarios:

• SKU is in stock: You set the SKU lead time, the time considered in the order shipping calculation, and the total time will be displayed to the customer at checkout.
• SKU is out of stock: You set the SKU lead time, but the SKU is not considered valid because there are no units available for sale.
• Unlimited inventory: You set the SKU lead time, the time considered in the order's shipping calculation, and the total time will be displayed to the customer at checkout. As long as inventory is enabled as unlimited, the SKU will always be valid for sales.

Lead time is set to zero, and the limit is 365 days. By default, the calculation is made in business days, considering public holidays and other shipping policy conditions, but you can change the calculation to calendar days.

To configure the lead time for a SKU, follow the steps below:

1. In the VTEX Admin, go to Catalog > Inventory > Inventory Management, or type Inventory Management in the search bar at the top of the page.
2. Select the SKU you want to configure. You can use the search bar and filters.
3. In the SKU row and the Lead time (days) column, enter the days you want.
   
4. Click Save at the bottom of the page.

In the VTEX Admin, lead time is always configured in days, but you can configure it in hours, minutes, and seconds using the endpoints Update inventory by SKU and warehouse and Update inventory lead time by SKU and warehouse.

Lead time only works with positive values since you can add shipping time but not decrease it. Using negative values could lead to unexpected behaviors.

If you want the lead time to be calculated in calendar days, follow the steps below:

1. In the VTEX Admin, go to Shipping > Shipping Strategy > Shipping Policies, or type Shipping Policies in the search bar at the top of the page.

2. Find the shipping policy you want. You can use the search bar and filters.

   To create a new shipping policy, read the Shipping Policy article.

3. In the shipping policy row, click the menu icon and select Edit.

4. In the Weekends and Holidays section, activate the desired toggles:

   • Saturday delivery
   • Sunday delivery
   • Holiday delivery

5. Click Save Changes.