Procurement Glossary
Lead time BANF→PO: Measurement of purchase requisition efficiency
November 19, 2025
The lead time BANF→PO measures the time span from the creation of a purchase requisition (BANF) to the final purchase order. This metric shows the efficiency of internal procurement processes and reveals delays in the approval chain. Find out below how this metric is calculated, what optimization approaches exist and how you can systematically reduce throughput times.
Key Facts
- Measures internal process efficiency from the purchase requisition to the purchase order
- Typical lead times vary between 2-15 working days depending on complexity
- Automation can reduce lead times by up to 70%
- Approval workflows are often the biggest time factor
- Direct correlation to supplier satisfaction and procurement costs
Contents
Definition and meaning of lead time BANF→PO
The lead time BANF→PO systematically records all process steps between the initial purchase requisition and the final order.
Core components of throughput time
The total throughput time is made up of several sub-processes:
- Checking and validating the purchase requisition
- Approval workflow through various instances
- Supplier selection and price negotiations
- Creation and release of the purchase order
Lead time BANF→PO vs. other time metrics
In contrast to PO Cycle Time, this key figure focuses exclusively on internal processes. Requisition Cycle Time, on the other hand, covers the entire procurement cycle including goods receipt.
Importance in strategic Procurement
Short lead times improve planning, reduce emergency procurements and strengthen supplier relationships. They also enable better negotiating positions through timely orders.
Measurement, database and calculation
Precise measurement requires systematic data acquisition of all process steps and their time stamps.
Data sources and collection
The primary data sources are ERP systems, workflow management tools and procurement platforms. Each process step is documented with a time stamp:
- BANF creation date and time
- Approval times of all instances
- PO creation and release date
Calculation formula and metrics
The basic formula is: lead time = PO release date - BANF creation date. Mean values, medians and percentiles are calculated for meaningful analyses. The three-way match rate can provide additional quality indicators.
Segmentation and categorization
Sensible segmentation is carried out according to procurement categories, order values and supplier types. Standard items typically have shorter lead times than complex capital goods or new suppliers.
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Interpretation & target values for throughput time
Benchmarks and target values vary depending on the industry, complexity and degree of automation of the procurement processes.
Industry-specific benchmarks
Manufacturing companies typically achieve 3-7 business days, while complex services take 7-14 days. Best-in-class organizations manage under 2 business days for standard items. The touchless rate correlates strongly with short lead times.
Target value definition and monitoring
Realistic target values take procurement complexity and available resources into account. Continuous monitoring identifies trends and outliers at an early stage:
- Standard article: less than 3 working days
- Complex procurements: less than 10 working days
- Emergency orders: less than 24 hours
Performance indicators and correlations
Short throughput times correlate positively with a high catalog ratio and low procurement costs. Regular analysis identifies optimization potential and measures improvement measures quantitatively.
Risks, dependencies and countermeasures
Long lead times harbour operational and strategic risks that can be minimized through targeted measures.
Operational risks and effects
Delayed orders lead to production downtime, emergency procurements with higher costs and deteriorated supplier relationships. Adherence to delivery dates suffers due to unforeseeable internal delays.
System dependencies and technical risks
ERP system failures or insufficient integration between different platforms can bring processes to a standstill. Manual workarounds increase error rates and further extend throughput times. Regular system maintenance and backup processes are essential.
Compliance and governance challenges
Complex approval structures strike a balance between control and efficiency. Excessive bureaucracy prolongs processes, while insufficient controls create compliance risks. Contract compliance must be integrated into optimized workflows.
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Practical example
An automotive supplier reduced its average BANF→PO lead time from 12 to 4 working days through systematic process optimization. The implementation of automatic approvals for orders under EUR 5,000 and the introduction of mobile approval apps for managers were key factors. In addition, an escalation mechanism was established for overdue approvals.
- Automatic release for standard articles under defined threshold values
- Mobile approval workflows for location-independent decisions
- Escalation rules if defined time limits are exceeded
Current developments and effects
Digitalization and AI integration are revolutionizing traditional procurement processes and significantly shortening throughput times.
Automation and AI integration
Artificial intelligence optimizes approval workflows through intelligent routing algorithms and automatic approvals for standard orders. Machine learning analyzes historical data to predict bottlenecks. The degree of automation for invoices shows similar developments.
Mobile procurement and cloud solutions
Mobile approval apps enable location-independent approvals and drastically reduce waiting times. Cloud-based procurement platforms offer real-time visibility and accelerate decision-making processes through centralized data availability.
Supplier integration and e-procurement
Direct system integration with suppliers shortens communication channels and eliminates manual transmission errors. Electronic Data Interchange (EDI) and API connections automate the entire ordering process, from inquiry to order confirmation.
Conclusion
The lead time BANF→PO is a critical indicator of the efficiency of internal procurement processes. Short, predictable lead times improve supplier relationships, reduce procurement costs and increase operational flexibility. Systematic automation and digital workflows are key to sustainable optimization. Regular monitoring and continuous improvement ensure competitive procurement processes in the long term.
FAQ
What is an acceptable lead time BANF→PO?
Acceptable lead times vary according to the complexity of the procurement. Standard items should be processed within 3 working days, while complex capital goods can take up to 14 days. The consistency and predictability of the processes is crucial.
Which factors increase the lead time the most?
Complex approval workflows, manual data transfers and unclear responsibilities are the main causes of long lead times. A lack of substitution rules and incomplete purchase requisitions further increase delays.
How can lead times be systematically reduced?
Systematic reduction is achieved through process automation, clear approval structures and digital workflows. Regular process analyses identify bottlenecks, while employee training improves data quality and minimizes queries.
What role does supplier integration play?
Direct system integration with suppliers speeds up communication and reduces manual transmission errors. Electronic catalogs and punch-out systems enable seamless ordering processes and significantly shorten the time between BANF creation and final purchase order.
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