Procurement Cycle Time
Procurement Cycle Time refers to the total elapsed time from the initial identification of a need to the fulfillment of that need through receipt of goods or services. This key performance indicator measures the efficiency and responsiveness of the procurement function.
The procurement cycle typically includes these time components:
- Requisition creation and approval time
- Sourcing and supplier selection period
- Purchase order creation and issuance time
- Order acknowledgment and processing duration
- Production or service preparation time
- Shipping and delivery timeframe
- Receipt and inspection period
Digital procurement platforms reduce cycle times by automating workflow steps, eliminating manual handoffs, providing real-time status visibility, and identifying bottlenecks through process mining and analytics capabilities.
Related Terms
Purchase Order (PO)
A Purchase Order (PO) is a commercial document issued by a buyer to a seller, in...
Learn moreRequest for Quotation (RFQ)
A Request for Quotation (RFQ) is a standard business process that invites suppli...
Learn moreSupplier Relationship Management (SRM)
Supplier Relationship Management (SRM) is a comprehensive approach to managing i...
Learn moreExplore More Supply Chain Terms
Enhance your procurement knowledge with our comprehensive glossary
Browse Full GlossaryReady to streamline your procurement process?
Start your free trial today and see how AuraVMS can transform your vendor management.