Procurement Glossary
Execution process: Systematic control of procurement processes
November 19, 2025
The handling process comprises all structured steps for the systematic execution of procurement processes, from requirements to final delivery. This procedural approach ensures efficiency, transparency and quality assurance throughout the entire procurement chain. Find out below what characterizes the handling process, which methods are used and how you can use key figures to control it.
Key Facts
- Structured sequence of all procurement steps from determination of requirements to delivery
- Standardized workflows reduce throughput times by up to 30%
- Digital process support enables real-time tracking and automated approvals
- Clear responsibilities and escalation paths minimize delays
- Continuous process optimization through KPI-based control
Contents
Definition: Settlement process
The execution process refers to the systematic and structured implementation of all necessary steps for the realization of procurement processes.
Core elements of the settlement process
An effective handling process is based on defined phases and clear responsibilities:
- Determination and specification of requirements
- Supplier selection and contract design
- Order processing and deadline tracking
- Incoming goods and quality inspection
- Invoice verification and payment release
Execution process vs. sourcing process
While the sourcing process comprises strategic supplier identification and evaluation, the execution process focuses on the operational implementation of specific procurement processes. Order processing forms a central part of this.
Importance in modern Procurement
Standardized handling processes create transparency, reduce error rates and enable the efficient use of resources. They form the foundation for digital transformation and automated procurement solutions.
Methods and procedures
Various methodical approaches support the optimization and standardization of handling processes.
Process modeling and standardization
The systematic recording and documentation of all process steps forms the basis for increasing efficiency. Workflows are defined, interfaces identified and responsibilities determined. A structured purchasing manual documents these standards in a binding manner.
Digital process support
Modern ERP systems and procurement platforms automate recurring activities and create transparency. Electronic workflows enable order approval according to defined criteria and significantly reduce manual intervention.
Continuous process improvement
Regular process analyses identify optimization potential and bottlenecks. Systematic data evaluation and stakeholder feedback are used to continuously develop handling processes and adapt them to changing requirements.
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Key figures for controlling the settlement process
Meaningful key figures enable the objective evaluation and continuous improvement of handling processes.
Lead time key figures
Measuring process throughput times identifies bottlenecks and optimization potential. Typical key figures include the time from requirement request to order and from order to goods receipt. Benchmark comparisons reveal opportunities for improvement.
Quality and error rates
Systematic recording of process errors and their causes enables targeted improvement measures. Key figures such as the complaint rate, delivery reliability and first-pass yield objectively evaluate process quality and create transparency regarding the need for improvement.
Efficiency and cost ratios
Process costs per transaction and degree of automation measure operational efficiency. The ratio of process costs to purchasing volume shows economies of scale and supports resource planning and budgeting.
Risk factors and controls in settlement processes
Inadequately managed settlement processes harbor various operational and strategic risks for companies.
Process interruptions and delays
A lack of standardization leads to inconsistent processes and longer lead times. Unclear responsibilities cause communication gaps and delay critical decisions. Established escalation processes minimize these risks through defined intervention mechanisms.
Compliance and quality risks
Incomplete documentation and a lack of controls can lead to compliance violations. Inadequate incoming goods inspections jeopardize product quality and customer satisfaction. Systematic inspection routines and audit trails create the necessary transparency.
Cost risks due to inefficiencies
Redundant activities and manual process steps cause unnecessary costs. A lack of integration between systems leads to double entries and coordination efforts. Process optimization and automation sustainably reduce these cost drivers.
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Practical example
A mechanical engineering company optimized its handling process for spare parts by introducing a digital workflow. Demand confirmation is now automated based on stock levels, and delivery call-offs are transmitted electronically to framework agreement suppliers. This standardization reduced throughput times by 40% and process costs by 25%.
- Automated demand recognition through warehouse system integration
- Electronic call-offs with defined SLAs
- Dashboard-based process monitoring in real time
Current developments and effects
Technological innovations and changing market requirements are shaping the evolution of modern handling processes.
AI-supported process optimization
Artificial intelligence is revolutionizing processing through predictive analytics and intelligent automation. AI systems analyse historical data, forecast delivery times and automatically optimize order quantities. Machine learning identifies patterns in deviations and suggests preventative measures.
End-to-end digitization
Fully digital processing chains eliminate media disruptions and create seamless integration between systems. Cloud-based solutions enable real-time collaboration with suppliers and significantly increase the speed of response for change orders.
Sustainability-oriented processing
Environmental and social criteria are increasingly being integrated into handling processes. Supplier assessments take carbon footprints into account, and document reviews include sustainability certificates as a standard compliance requirement.
Conclusion
Structured handling processes form the backbone of efficient procurement organizations and create measurable competitive advantages. Digitalization opens up new opportunities for automation and transparency, but requires a systematic approach and continuous optimization. Companies that invest in standardized handling processes benefit from reduced costs, higher quality and increased responsiveness. The integration of AI technologies will enable further efficiency gains in the future.
FAQ
What distinguishes a settlement process from a procurement process?
The execution process focuses on the operational implementation of specific procurement processes, while the overarching procurement process also includes strategic elements such as market analysis and supplier development. Execution is therefore a sub-area of the overall procurement function.
What role does digitalization play in process optimization?
Digital tools automate recurring activities, create transparency through real-time data and reduce manual sources of error. ERP integration enables seamless data flows and significantly shortens throughput times. Artificial intelligence also supports predictive analytics for proactive control.
How do I measure the efficiency of my handling process?
Key performance indicators are throughput times, process costs per transaction, error rates and degree of automation. Benchmark comparisons with industry standards reveal optimization potential. Regular process analyses systematically identify bottlenecks and opportunities for improvement.
What risks arise from unstructured settlement processes?
A lack of standardization leads to longer lead times, higher process costs and compliance risks. Unclear responsibilities cause communication gaps and delay critical decisions. Inadequate documentation makes traceability and auditability considerably more difficult.
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