Procurement Glossary
Requisition cycle time: lead time from the requirement request to the order
November 19, 2025
The Requisition Cycle Time measures the time from receipt of a requirement request to the final order release. This key figure is crucial for the efficiency of the procurement process and directly influences the company's ability to deliver. Find out below what exactly Requisition Cycle Time means, what methods exist for optimization and how you can use this key figure strategically.
Key Facts
- Measures the entire lead time from the purchase requisition to order release
- Typical values are between 2-15 working days depending on complexity and degree of automation
- Has a direct impact on delivery capability and customer satisfaction
- Can be reduced by up to 70% through digitization and workflow optimization
- Important indicator for process efficiency in Procurement
Contents
Definition: Requisition Cycle Time
The Requisition Cycle Time covers all process steps from the initial requirement request to the final order release.
Core components of the acquisition cycle time
The total throughput time is made up of several sub-processes:
- Recording and specifying requirements
- Approval workflow and release process
- Supplier selection and offer evaluation
- Order creation and final release
Differentiation from related key figures
In contrast to PO Cycle Time, the measurement begins with the requirement request. The BANF-PO cycle time covers a similar period, but focuses more strongly on internal processes.
Importance of the Requisition Cycle Time in Procurement
An optimized acquisition cycle time makes a significant contribution to competitiveness. It enables faster reactions to market changes and reduces the risk of delivery bottlenecks by shortening internal lead times.
Methods and procedures
Various approaches enable the systematic measurement and optimization of the acquisition cycle time.
Process analysis and time recording
Value stream mapping identifies bottlenecks and waiting times in the procurement process. Detailed time recording of all sub-steps allows optimization potential to be quantified.
Automation and digitalization
The degree of automation has a significant impact on cycle time. Electronic workflows, automatic approvals and integrated systems significantly reduce manual processing times.
Catalog-based procurement
A high catalog quota shortens the requisition cycle time thanks to standardized ordering processes. Predefined articles and prices eliminate time-consuming quotation processes for routine procurements.
Tacto Intelligence
Combines deep procurement knowledge with the most powerful AI agents for strong Procurement.
Key figures for controlling the acquisition cycle time
Specific key figures enable systematic monitoring and control of the requisition cycle time.
Average and maximum cycle time
The average requisition cycle time shows the process efficiency, while maximum values identify bottlenecks. The touchless rate should also be measured, as automated processes have significantly shorter cycle times.
Process quality and error rates
The three-way match rate and error rate for invoices show whether shortened cycle times are at the expense of process quality. A balanced view prevents quality losses.
Segment-specific analysis
The ABC analysis enables differentiated cycle time targets for each procurement category. A-items may require longer, but higher quality processes than C-items with standard procurement.
Risks, dependencies and countermeasures
Optimizing the acquisition cycle time entails specific risks that can be minimized by taking appropriate measures.
Loss of quality due to time pressure
An excessive focus on speed can lead to inadequate supplier ratings. A balanced supplier rating ensures quality standards despite a shortened cycle time.
Compliance violations in accelerated processes
Shorter throughput times must not be at the expense of contract compliance. Automated compliance checks in digital workflows prevent rule violations in accelerated processes.
System failures and dependencies
A high level of automation increases system dependency. Redundant systems and manual fallback processes ensure procurement capability even in the event of technical faults.
.avif)
Practical example
A mechanical engineering company reduced its requisition cycle time from an average of 12 to 4 working days by introducing a digital procurement portal. Standard items are approved automatically, while complex requirements go through an accelerated workflow. The implementation included:
- Digitization of all approval processes with mobile approvals
- Automatic supplier selection for catalog items
- Integration into the ERP system for seamless data transfer
Trends & developments around acquisition cycle time
Technological innovations and changes in working methods are shaping the development of the requisition cycle time.
AI-supported process optimization
Artificial intelligence is revolutionizing procurement through intelligent demand forecasts and automated approval workflows. Machine learning algorithms analyze historical data and continuously optimize processes.
Mobile procurement solutions
Mobile apps enable location-independent requisitions and approvals. This significantly reduces waiting times and speeds up the entire requisition process, especially in decentralized organizational structures.
Integration of supplier networks
Direct connections to supplier systems shorten lead times by providing real-time information on availability and prices. This integration eliminates manual coordination processes and speeds up order processing.
Conclusion
Requisition cycle time is a key performance indicator for the efficiency of the procurement process. Systematic optimization through digitalization and process automation can achieve significant improvements. A balanced view of speed and quality ensures sustainable success. Continuous measurement and analysis enables data-based decisions for further process optimization.
FAQ
What is a typical requisition cycle time?
Typical values are between 2-15 working days, depending on complexity, approval levels and degree of automation. Highly automated processes often take less than 3 working days, while complex capital goods require longer cycles.
How can the Requisition Cycle Time be measured?
The measurement takes place from the time stamp of the purchase requisition to the final order release. Modern ERP systems record these times automatically and enable detailed analyses by category, supplier or organizational unit.
Which factors have the greatest influence on cycle time?
The main influencing factors are the degree of automation, the number of approval levels, the complexity of the requirement and the availability of approvers. Catalog-based procurement and digital workflows significantly reduce time.
How does a shortened cycle time affect costs?
Shorter cycle times reduce administrative costs and enable better market prices through prompt procurement. At the same time, opportunity costs are reduced thanks to faster availability of required resources for productive activities.
.png)
.png)
.png)
