Procurement Glossary
Touchless rate: measuring the degree of automation in procurement
November 19, 2025
The touchless rate measures the proportion of fully automated procurement processes without manual intervention. This key figure shows how efficiently digital systems handle orders, invoice processing and supplier interactions. A high touchless rate reduces costs, minimizes errors and speeds up processes considerably. Find out below what the touchless rate means exactly, what methods exist for increasing it and how you can use this key figure strategically.
Key Facts
- Touchless rate measures the percentage of fully automated procurement processes without human intervention
- Typical values are between 30-80%, depending on the industry and degree of digitization
- Higher rates lead to 40-60% cost savings in process handling
- Automation mainly affects standard orders, invoice verification and supplier approvals
- AI and machine learning drive the touchless rate to over 90% for routine processes
Contents
Definition: Touchless rate - importance in procurement
The touchless rate defines the degree of automation in procurement processes and shows what proportion is carried out without manual processing.
Key aspects of the touchless rate
The touchless rate covers various dimensions of process automation:
- Complete system integration between ERP, e-procurement and supplier systems
- Automatic order triggering based on stock limits
- Digital invoice verification with three-way match process
- Independent supplier approval with defined quality criteria
Touchless rate vs. degree of automation
While the degree of automation looks at individual sub-processes, the touchless rate evaluates end-to-end processes. It not only measures technical automation, but also genuine hands-off processing without interruptions.
Importance of the touchless rate in Procurement
A high touchless rate enables strategic realignment of procurement. Employees concentrate on value-adding activities such as supplier development and innovation management, while routine activities are fully automated.
Methods and procedure for Touchless Rate
Increasing the touchless rate requires a systematic approach and step-by-step implementation of automated solutions.
Process analysis and standardization
The first step is a comprehensive analysis of existing procurement processes. Standardizable processes are identified and standardized:
- Mapping of all procurement steps from identification of requirements to payment
- Identification of manual touchpoints and decision points
- Definition of clear rules for automated decisions
Technology integration
The technical implementation is based on seamless system integration. Catalog-based orders and electronic workflows form the foundation for high touchless rates.
Continuous optimization
Regular measurement and adaptation of the automation rules ensure sustainable improvements. Machine learning algorithms learn from exceptions and continuously expand the area that can be automated.
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Important KPIs for touchless rate
Measuring and controlling the touchless rate requires specific key figures that reflect various aspects of process automation.
Primary touchless metrics
The basic metric measures the share of fully automated transactions in the total volume. Supplementary metrics differentiate according to process steps:
- Touchless Purchase Order Rate: Automatically generated orders
- Touchless Invoice Processing Rate: Invoices without manual checking
- Touchless Goods Receipt Rate: Automatic goods receipt posting
Efficiency and quality indicators
Accompanying KPIs evaluate the impact of high touchless rates on process quality. Purchase order cycle time and error rates reveal potential for improvement.
Strategic performance indicators
Long-term performance measurement includes cost savings, employee productivity and supplier integration. These metrics provide lasting proof of the strategic value contribution of automated procurement processes.
Risks, dependencies and countermeasures
High touchless rates entail specific risks that need to be addressed by suitable control mechanisms and fallback strategies.
System failures and technical dependencies
Fully automated processes are susceptible to system malfunctions and interface problems. Redundant systems and manual backup processes ensure business continuity even in the event of technical failures.
Quality control and compliance risks
Automated decisions can violate quality standards or compliance requirements. Regular spot checks and complaint analyses uncover systematic errors at an early stage:
- Automatic plausibility checks for critical parameters
- Escalation mechanisms for exceptional situations
- Regular audit trails and compliance checks
Supplier dependencies
High automation can lead to excessive dependence on individual suppliers. A diversified supplier base and flexible automation rules significantly reduce concentration risks.
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Practical example
An automotive supplier increased its touchless rate from 35% to 78% through systematic process automation. Standard parts are ordered automatically when stock levels fall below a defined minimum. The ERP system checks supplier availability, compares prices and triggers orders. Incoming invoices are recorded digitally, compared with order data and automatically released for payment if they match. Only deviations of more than 5% or new suppliers require manual checking.
- Reduction in processing time by 60%
- Process costs reduced by 45
- 30% improvement in data quality
Trends & developments around touchless rate
Current developments show a significant acceleration in touchless automation due to new technologies and changing market requirements.
AI-supported process automation
Artificial intelligence is revolutionizing the touchless rate through intelligent decision-making. AI systems analyze patterns, forecast requirements and make complex procurement decisions autonomously:
- Predictive analytics for automatic order triggering
- Natural language processing for contract analysis
- Computer vision for incoming goods inspection
Cloud-based platforms
Cloud solutions enable seamless integration of different systems and suppliers. Spend management platforms orchestrate complex procurement landscapes fully automatically.
Blockchain and smart contracts
Blockchain technology creates trustworthy, automated transactions between business partners. Smart contracts execute procurement agreements independently as soon as defined conditions are met.
Conclusion
The touchless rate is becoming the key performance indicator for procurement excellence in the digital age. High levels of automation enable significant cost savings and efficiency gains while improving quality. However, successful implementation requires strategic planning, robust technology and balanced risk control. Companies that systematically expand touchless processes create sustainable competitive advantage through operational excellence.
FAQ
What is a good touchless rate?
A touchless rate of between 60-80% is considered very good for established companies. Industry leaders achieve over 85% for standard processes. The optimum value depends on product complexity, supplier structure and available IT infrastructure.
How do you calculate the touchless rate?
The touchless rate is calculated by dividing fully automated transactions by total transactions times 100. Only end-to-end processes without any manual intervention count as "touchless". Semi-automated processes are not included in the calculation.
Which processes are suitable for touchless automation?
Standardized, rule-based processes with few exceptions are ideal. These include catalog orders, routine invoices, standard supplier approvals and recurring services. Complex negotiations or strategic procurements usually remain manual.
What are the risks of too high a touchless rate?
Excessive automation can lead to loss of control, quality problems and supplier dependencies. Lack of human supervision makes it difficult to detect systematic problems. Balanced automation with targeted checkpoints effectively minimizes these risks.
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