Procurement Glossary
Value stream mapping: systematic optimization of procurement processes
November 19, 2025
Value stream mapping is a proven lean management method for the systematic visualization and optimization of business processes. In Procurement , it enables the detailed analysis of procurement processes in order to identify waste and realize efficiency gains. Find out below what value stream mapping is, which methods are used and how you can use them strategically for your Procurement .
Key Facts
- Visualizes material and information flows in procurement processes
- Systematically identifies waste and bottlenecks
- Reduces throughput times by 20-40% on average
- Based on lean management principles from the automotive industry
- Enables data-based process optimization in Procurement
Contents
Definition: Value stream mapping
Value stream mapping is a structured method for depicting and analyzing material and information flows along the entire value chain.
Basic components
A value stream analysis comprises the systematic recording of all process steps from the creation of requirements to delivery. Both value-adding and non-value-adding activities are documented.
- Material and information flows
- Process times and waiting times
- Stocks and buffer times
- Quality indicators
Value stream mapping vs. process analysis
In contrast to traditional process analysis, value stream mapping takes a holistic view of the entire value stream. It focuses on the customer perspective and systematically identifies all forms of waste (muda).
Importance in Procurement
In the area of procurement, value stream mapping enables the optimization of order cycles and the improvement of supplier performance. It creates transparency about hidden costs and inefficiencies.
Methods and procedures
The implementation of a value stream analysis follows a structured procedure with defined phases and tools.
As-is assessment
The first step involves detailed documentation of the current status. All process steps, times and interfaces are recorded. Data is collected through observation, interviews and system evaluations.
- Process steps and responsibilities
- Throughput times and waiting times
- Stocks and buffer sizes
Waste identification
The seven types of waste are then systematically identified: Overproduction, waiting times, transportation, over-processing, inventory, movement and errors. In Procurement , these often manifest themselves as excessively long order cycles or manual duplication of work.
Target state design
Based on the findings, an optimized target state is developed. This eliminates identified waste and implements lean principles such as pull systems and continuous flow. Automation plays a central role here.
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Key figures for controlling value stream analyses
Successful value stream mapping requires the definition and monitoring of specific key performance indicators to measure the success of optimization.
Lead time key figures
The total lead time from demand to delivery is a key performance indicator. It includes both value-adding and non-value-adding times. Typical target values are a reduction of 30-50% compared to the initial state.
- Purchase requisition lead time
- Approval times
- Delivery times
Efficiency metrics
The proportion of value-adding activities in the total throughput time shows the process efficiency. In addition, degrees of automation and non-contact processing rates are measured. These key figures illustrate the potential for optimization.
Quality indicators
Error rates and rework efforts document the process quality. The three-way matching rate and complaint rates are important quality indicators. The aim is to continuously improve the first pass rate.
Risk factors and controls in value stream mapping
When carrying out value stream mapping, various risks can arise that jeopardize the success of the project.
Incomplete data collection
A superficial or incomplete analysis leads to incorrect conclusions and ineffective optimization measures. Hidden process steps and informal processes in particular are often overlooked. Systematic validation of the collected data is therefore essential.
Resistance to change
Employees can perceive optimization measures as a threat and put up resistance. This can significantly delay the implementation of new processes. Early communication and involvement of those affected are critical success factors.
Underestimation of complexity
Procurement processes are often more complex than initially assumed. Dependencies between different systems and departments are underestimated. This can lead to unrealistic optimization targets and failed implementations. A realistic assessment of delivery times and process dependencies is therefore essential.
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Practical example
A medium-sized mechanical engineering company carried out a value stream analysis for its indirect Procurement . The analysis revealed that 70% of the lead time was accounted for by approval processes and manual data transfers. By implementing a digital workflow and increasing approval limits, the lead time was reduced from 12 to 4 days.
- Automation of recurring approvals
- Elimination of redundant test steps
- Introduction of electronic catalogs
Current developments and effects
Value stream mapping is constantly evolving and integrates modern technologies to increase efficiency.
Digital value stream mapping
Modern software tools enable automated data collection and visualization of value streams. Process mining and business intelligence create new possibilities for analysis. These digital approaches significantly reduce the effort involved in data collection.
AI-supported optimization
Artificial intelligence is revolutionizing value stream analysis through predictive analytics and automated optimization suggestions. Machine learning algorithms recognize patterns in complex procurement processes and suggest data-based improvements. This enables continuous optimization of service quality.
Integration in Supply Chain 4.0
Value stream analysis is increasingly being integrated into digital supply chains. IoT sensors and real-time data enable continuous monitoring and adjustment of value streams. This leads to increased adherence to schedules and better planning.
Conclusion
Value stream mapping is a proven tool for the systematic optimization of procurement processes. It creates transparency about hidden inefficiencies and enables data-based improvements. By integrating modern technologies such as AI and process mining, the method is continuously being developed further. For purchasing organizations, it offers considerable potential for reducing costs and increasing efficiency.
FAQ
What is the difference between value stream mapping and process optimization?
Value stream mapping takes a holistic view of the entire value stream and focuses on the customer perspective. Traditional process optimization often only concentrates on individual process steps. Value stream mapping systematically identifies all forms of waste along the entire value chain.
How long does a typical value stream analysis in Procurement take?
A complete value stream analysis takes 4-12 weeks, depending on the complexity. The as-is analysis usually takes 2-4 weeks, the analysis and target concept another 2-4 weeks. The subsequent implementation can take several months, depending on the scope of the identified optimization measures.
What cost savings are realistic through value stream mapping?
Typical savings are 15-30% of process costs through efficiency improvements. In addition, indirect savings are achieved through improved supplier relationships and reduced inventories. The investment is usually amortized within 6-18 months after implementation of the optimization measures.
What are the prerequisites for successful value stream mapping?
The commitment of the management and the active cooperation of all those involved are crucial. Sufficient resources must be made available for data collection and analysis. It is also important to have an open corporate culture that is positive about change and promotes continuous improvement.
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