Procurement Glossary
Bottleneck analysis: identifying bottlenecks and optimizing supply chains
November 19, 2025
Bottleneck analysis is a systematic method for identifying bottlenecks in procurement processes and supply chains. It enables purchasing organizations to identify critical weak points that hinder the flow of materials or increase costs. Find out below what a bottleneck analysis is, which methods are used and how you can successfully eliminate bottlenecks.
Key Facts
- Systematic method for identifying bottlenecks in procurement and the supply chain
- Focus on critical resources, suppliers or process steps with limited capacity
- Enables targeted optimization measures to increase throughput times
- Reduces procurement risks and improves security of supply
- Supports strategic decisions in supplier selection and capacity planning
Contents
Definition: Bottleneck analysis
Bottleneck analysis systematically examines all elements of a supply chain in order to localize bottlenecks and assess their impact.
Basic concepts and features
A bottleneck refers to the process step or resource with the lowest capacity that limits the overall throughput. In procurement, this can be critical materials, suppliers with limited production capacities or internal approval processes.
- Identification of capacity-limiting factors
- Quantification of the effects on throughput times
- Evaluation of cost-benefit ratios for optimization measures
Bottleneck analysis vs. risk analysis
While the deviation analysis examines differences between target and actual states, the bottleneck analysis focuses on capacity bottlenecks. Both methods complement each other in holistic supply chain resilience.
Importance of bottleneck analysis in Procurement
Bottleneck analysis is essential for purchasing organizations to ensure a continuous supply of materials. It supports the procurement strategy through data-based decisions on supplier portfolios and capacity expansions.
Methods and procedures
The systematic implementation of a bottleneck analysis is carried out in structured phases using various analytical tools.
Data collection and process analysis
The first step involves the complete recording of all process steps and their capacities. Throughput times, processing times and waiting times are documented.
- Mapping the entire value chain
- Recording of capacity data and utilization rates
- Documentation of dependencies between process steps
Bottleneck identification through key figure analysis
Potential bottlenecks are identified with the help of key figures such as throughput, cycle times and utilization rates. The demand analysis provides an important basis for capacity assessment.
Simulation and scenario analysis
Various optimization scenarios are tested using simulation models. This makes it possible to evaluate measures before they are implemented and supports demand planning when dimensioning capacity.
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Key figures for controlling the bottleneck analysis
Specific key figures enable the objective evaluation of bottlenecks and the success of optimization measures.
Throughput and capacity figures
Throughput measures the number of units processed per period, while capacity utilization indicates the ratio between used and available capacity. These key figures identify bottlenecks directly.
- Throughput rate (units/time)
- Capacity utilization (%)
- Queue time
Efficiency and cost ratios
Overall equipment effectiveness (OEE) evaluates the productivity of resources, while bottleneck costs quantify the financial impact. The capital commitment period shows the impact on working capital.
Supply chain performance indicators
Delivery reliability, lead times and inventory coverage measure the impact of bottlenecks on overall performance. These key figures support stakeholder management through transparent performance measurement.
Risks, dependencies and countermeasures
Bottleneck analysis involves various risks that can be minimized by taking appropriate measures.
Data quality and analysis errors
Incomplete or incorrect data leads to incorrect conclusions when identifying bottlenecks. Systematic data validation and regular plausibility checks are essential for reliable results.
- Implementation of data quality controls
- Use of multiple data sources for validation
- Regular calibration of the analysis methods
Dynamic market changes
Bottlenecks can shift quickly due to fluctuations in demand or supplier failures. Security of supply requires continuous monitoring and flexible adaptation strategies.
Optimization paradox
Eliminating a bottleneck can cause new bottlenecks elsewhere. A holistic view of the supply chain and step-by-step optimization prevent unwanted relocation effects. Supply Base Optimization supports balanced capacity development.
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Practical example
An automotive supplier used bottleneck analysis to identify a bottleneck in the quality inspection of electronic components. The analysis showed that 80% of the throughput time was accounted for by waiting times in front of the test station. By investing in an additional testing system and parallelizing the processes, the overall throughput time was reduced by 40%.
- Data acquisition of all process steps and waiting times
- Identification of quality inspection as a critical bottleneck
- Implementation of additional testing capacities
- Continuous monitoring to avoid new bottlenecks
Trends & developments around bottleneck analyses
Modern technologies are revolutionizing bottleneck analysis through automated data acquisition and intelligent evaluation processes.
AI-supported bottleneck detection
Artificial intelligence enables the automatic identification of bottlenecks in real time. Machine learning algorithms recognize patterns in historical data and predict future bottlenecks. AI in Procurement supports preventative optimization measures.
Digital supply chain visibility
Integrated platforms offer end-to-end transparency across all stages of the supply chain. IoT sensors and digital twins enable continuous monitoring of capacities and throughputs. Supply chain visibility is becoming a decisive success factor.
Agile optimization approaches
Flexible methodologies enable rapid adjustments to changing market conditions. Agile Procurement uses iterative improvement cycles for continuous bottleneck optimization and increases responsiveness to market changes.
Conclusion
Bottleneck analysis is an indispensable tool for efficient procurement processes and resilient supply chains. It enables the systematic identification and elimination of bottlenecks that hinder the flow of materials. Modern AI-supported approaches increase the precision and speed of the analysis. Companies that use bottleneck analyses strategically have been proven to achieve better delivery performance and reduced procurement costs.
FAQ
What is the difference between bottleneck and critical path?
A bottleneck limits the throughput of the entire system, while the critical path is the longest sequence of activities in a project. Bottlenecks can lie outside the critical path and still affect the overall performance.
How often should a bottleneck analysis be carried out?
The frequency depends on the dynamics of the supply chain. In volatile markets, continuous monitoring is recommended, while quarterly analyses are sufficient in stable environments. Event-based analyses following major changes are also useful.
What are the costs of undetected bottlenecks?
Undetected bottlenecks cause increased stock levels, extended delivery times and opportunity costs due to lost sales. Studies show that bottlenecks can increase total costs by 15-25%, while eliminating them often requires little investment.
How do you prioritize several identified bottlenecks?
Prioritization is based on the impact on overall throughput, the cost of elimination and strategic importance. Bottlenecks with a high impact and low elimination costs have the highest priority. A cost-benefit analysis supports the objective assessment.
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