After installing an electronic data interchange, Kay Jewelers was able to reduce lead time, the amount of time between the recognition that an order needs to be placed and the arrival of the needed merchandise.
Lead time is defined as the amount of time between the initiation and completion of a production process. When Kay's installed the data interchange, they were able to facilitate the process of completing orders at a much faster pace. This stopped them from taking too much time with human error of knowing when these jobs needed to be completed and orders needed to be placed. They are able to make sure full stock remains constant using a system like this.