This measure helps companies calculate the average number of days in supplier lead time on purchased materials, which begins with the transmission of the purchase order and ends when a business entity receives delivery. It is part of a set of Cycle Time measures that help companies analyze the duration of the process "procure materials and services" from beginning to end.
Average supplier lead time on purchased materials
Cycle time is the total time from the beginning of the process to the end. This includes both time spent actually performing the process and time spent waiting to move forward.
The metric value which represents the 50th percentile of a peer group. This could also be communicated as the metric value where half of the peer group sample shows lower performance than the expressed metric value or half of the peer group sample shows higher performance than the expressed metric value.