PLT

In Amazon’s supply chain and vendor management context, PLT is a key operational metric used to measure how long it takes vendors to procure inventory after a purchase order (PO) is issued. PLT directly affects availability, replenishment frequency, and instock rates across Amazon’s fulfilment network.

How It Works:

• PLT covers all steps between PO creation and inventory readiness at the vendor’s warehouse:
  1. PO receipt and confirmation by vendor.
  2. Raw material procurement or component sourcing.
  3. Manufacturing and assembly (if applicable).
  4. Quality control and packaging.
  5. Goods ready for dispatch to Amazon or other destinations.
• PLT is usually measured in days and varies by category, supplier location, and production complexity.

Example Calculation:
A vendor receives a PO on March 1.
The product is ready for shipment on March 21.

PLT=20 days

Benefits for Vendors:

• Better planning: Knowing the PLT helps vendors align with Amazon’s replenishment schedule.
• Inventory control: Reduces overstocking or understocking risk.
• Forecast accuracy: Enables more predictable lead times and smoother fulfilment.

Benefits for Amazon:

• Supply chain predictability: Helps ensure product availability and avoid out-of-stock situations.
• Efficiency: Facilitates better routing, shipping, and FC scheduling.
• Vendor performance evaluation: PLT is a core metric in Amazon’s Vendor Scorecard, alongside VLT (Vendor Lead Time) and OTIF (On-Time In-Full).

Challenges:

• External dependencies: Delays in raw materials, logistics, or customs can extend PLT.
• Inaccurate reporting: Vendors sometimes underestimate PLT, leading to late deliveries.
• Category variability: Electronics or custom-made goods have longer PLTs than FMCG products.

Why It Matters:
A short and reliable PLT improves Amazon’s supply chain responsiveness and ensures continuous availability for high-demand ASINs. For vendors, optimising PLT reduces working capital tied up in production and storage.

Example:
A beauty brand with a PLT of 12 days can restock Amazon faster than a competitor with 30 days. This results in better instock %, lower missed POs, and stronger sales continuity.

In short:
PLT (Procurement Lead Time) is the total time a vendor needs to procure and prepare goods after receiving a purchase order - a key metric for ensuring efficient, predictable supply to Amazon.