Procurement Glossary
Time-to-market: definition, importance and optimization in Procurement
November 19, 2025
Time-to-market refers to the period from the initial product idea to market launch and is a decisive competitive factor. In Procurement , this key figure plays a central role in supplier selection, procurement planning and supply chain optimization. Find out below what time-to-market means, what methods exist for shortening it and how you can successfully manage critical risk factors.
Key Facts
- Time-to-market measures the development time from product idea to market launch
- Shorter time-to-market creates competitive advantages and higher market shares
- Procurement influences time-to-market through strategic supplier selection and procurement planning
- Digital tools and agile methods can reduce time-to-market by 20-40
- Risks arise from quality defects if market launch is too fast
Contents
Definition: Time-to-market
Time-to-market covers all phases of product development and launch through to the first sale on the market.
Key aspects of time-to-market
The time-to-market is made up of various development phases:
- Concept development and market analysis
- Product design and prototyping
- Procurement and supplier integration
- Production and quality assurance
- Market launch and start of sales
Time-to-market vs. time-to-volume
While time-to-market focuses on the first sale, time-to-volume describes the time to full production. Both key figures complement each other in purchasing planning and capacity planning.
Importance of time-to-market in Procurement
Procurement makes a significant contribution to time-to-market optimization through early supplier integration, efficient material availability checks and strategic procurement decisions.
Methods and procedures
Various approaches enable a systematic shortening of the time-to-market through optimized procurement processes.
Simultaneous engineering
Parallel development and procurement activities significantly reduce throughput times. Purchasing is already optimized in the early development phases through:
- Early supplier selection and evaluation
- Parallel prototype procurement and series planning
- Integrated quality and cost analysis
Agile procurement methods
Flexible procurement strategies support rapid market launches. Demand sensing and forecast management enable rapid adjustments to market changes.
Digital planning tools
Modern systems accelerate decision-making processes through automated scheduling and real-time data analysis for precise delivery time forecasts.
Tacto Intelligence
Combines deep procurement knowledge with the most powerful AI agents for strong Procurement.
Important KPIs for time-to-market
Measurable key figures enable systematic monitoring and optimization of time-to-market performance.
Development cycle time
The total time from product idea to market launch forms the basic KPI. Deadline tracking documents milestones and systematically identifies the causes of delays.
Procurement lead time
The time from the order request to material availability has a significant impact on the overall time. Delivery date tracking and delivery date commitments continuously optimize this key figure.
First-pass yield
The proportion of error-free first productions shows the quality efficiency. High values reduce rework times and speed up market launch thanks to fewer iteration loops.
Risk factors and controls for time-to-market
The acceleration of the market launch entails specific risks that must be controlled by systematic risk management.
Quality risks
Time pressure can lead to inadequate quality checks. Exception management identifies deviations at an early stage and prevents quality defects through structured control processes.
Supplier defaults
Dependence on individual suppliers jeopardizes deadline targets. Diversified procurement strategies and security capacities significantly reduce default risks.
Cost overruns
Accelerated processes often result in higher costs due to express surcharges and custom-made products. Schedule deviation analyses enable early cost control and budget adjustments.
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Practical example
An automotive supplier reduced its time-to-market for new components from 18 to 12 months through strategic procurement optimization. The company implemented a digital supplier portal with real-time capacity queries and introduced parallel development and procurement processes. By involving key suppliers in product development at an early stage and automating material availability checks, critical delays were avoided.
- 40% reduction in procurement lead times
- 25% fewer quality problems thanks to supplier integration
- 15% cost savings through optimized planning processes
Current developments and effects
Technological innovations and changing market requirements are shaping the development of time-to-market optimization.
AI-supported procurement planning
Artificial intelligence is revolutionizing demand planning through more precise forecasts and automated decision-making. Machine learning algorithms analyze market data and optimize procurement cycles in real time.
Digital supplier integration
Cloud-based platforms enable seamless collaboration with suppliers. Available-to-Promise and Capable-to-Promise systems create transparency regarding delivery capacities.
Sustainability requirements
Environmental standards are increasingly influencing time-to-market through extended certification processes. Sales and Operations Planning integrates sustainability criteria into the procurement strategy.
Conclusion
Time-to-market is a decisive competitive factor that Procurement influences significantly through strategic procurement planning and supplier integration. Digital tools and agile methods enable significant time reductions, but require systematic risk management. The continuous optimization of procurement processes and KPI-based performance measurement create sustainable competitive advantages in the market.
FAQ
What is the difference between time-to-market and lead time?
Time-to-market covers the entire development cycle up to market launch, while lead time only describes the procurement or production time of individual components. Time-to-market is more strategic and takes all areas of the company into account.
How can Procurement shorten the time to market?
Through early supplier involvement, parallel procurement processes and digital planning tools. Strategic partnerships with key suppliers and automated material availability checks significantly accelerate decision-making processes.
What risks arise if the time-to-market is too short?
Quality defects due to inadequate testing, higher costs due to rush procurement and supplier overload. Systematic exception management and safety capacities help to minimize risks.
How do you successfully measure time-to-market?
By defining clear milestones from the product idea to the first sale. Important key figures are development cycle time, procurement lead time and first-pass yield for a holistic assessment of performance.
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