Procurement Glossary
Dual control principle (P2P): definition, application and significance in Procurement
November 19, 2025
The dual control principle (P2P) is a fundamental control procedure in procurement, in which important decisions and processes must be independently checked and approved by at least two people. This method minimizes errors, prevents fraud and increases transparency in critical purchasing processes. Find out below what the dual control principle means, which methods are used and how you can successfully implement it in your company.
Key Facts
- At least two people must check and approve decisions independently of each other
- Reduces the risk of errors by up to 80% in critical procurement processes
- Required by law for certain transaction volumes and industries
- Increases transparency and traceability of purchasing decisions
- Can be automated and made more efficient through digital workflows
Contents
Definition: Dual control principle (P2P)
The dual control principle ensures that critical business decisions cannot be made by a single person.
Basic mode of operation
When applying the dual control principle, two independent persons must check and approve each relevant process. This is done through separate responsibilities:
- First person: Initiation and preparation of the process
- Second person: Independent review and final approval
- Documentation of all test steps for traceability
Four-eyes principle vs. multi-eyes principle
While the classic four-eyes principle involves two people, more complex organizations extend this to multi-eyes principles with three or more auditors. The choice depends on the risk assessment and transaction volume.
Importance in modern Procurement
In the digital procurement environment, the dual control principle is supported by approval workflows and e-procurement systems, ensuring efficiency and compliance at the same time.
Methods and procedures
The practical implementation of the dual control principle requires structured methods and clear process definitions.
Sequential release procedures
In sequential procedures, each process goes through defined stages. The first reviewer prepares and forwards, the second reviewer carries out the final check. This method is particularly suitable for order management processes and major investment decisions.
Parallel control mechanisms
Parallel approaches enable simultaneous checks by several people. This speeds up processes for time-critical procurements:
- Simultaneous evaluation by technical experts
- Reaching a consensus in the event of differing assessments
- Reduced throughput times for rush orders
Digital implementation
Modern workflow rules automate the dual control principle through system-supported approval processes. Approval limits automatically define the required review instances based on value limits and risk categories.
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Important KPIs for the dual control principle (P2P)
The effectiveness of the dual control principle can be measured and continuously optimized using specific key figures.
Compliance rate and degree of coverage
The compliance rate measures the proportion of transactions that are properly subject to the dual control principle. The target values are 100% for critical processes and at least 95% for standard processes. The coverage rate shows what proportion of the purchasing volume is covered by double checks.
Throughput times and process efficiency
Average release times per test stage and overall process duration are decisive efficiency indicators:
- Average processing time per release stage
- Proportion of processes with SLA times exceeded
- Ratio of automated to manual checks
Error detection rate
This KPI measures how many errors or irregularities are identified by the dual control principle. A high detection rate of 15-25% of the processes checked indicates effective control mechanisms. Spend analyses support the evaluation of control quality.
Risks, dependencies and countermeasures
Despite its protective function, the dual control principle harbours specific risks that must be minimized by taking appropriate measures.
Process delays and efficiency losses
Duplicate checks can slow down procurement processes and increase costs. Conflicts arise between safety and speed, particularly in the case of time-critical rush orders. Countermeasures include risk-based release limits and emergency procedures for critical situations.
Collusion and circumvention risks
If both auditors pursue common interests, the dual control principle can be overridden. Preventive measures include:
- Regular rotation of test persons
- Independent selection of the second inspection body
- Random follow-up checks by third parties
Technical dependencies
Digital four-eye systems are susceptible to system failures and cyberattacks. Backup procedures and manual fallback processes ensure continuity in the event of technical disruptions. Workflow rules must take appropriate emergency scenarios into account.
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Practical example
A medium-sized production company implements the dual control principle for all orders over 5,000 euros. The purchaser creates the order in the system and defines the supplier, quantity and price. The head of department then checks that the order is technically correct and conforms to the budget. Once approved, the order is automatically transferred to the supplier. In addition, random checks are carried out by the internal audit department on 10% of all transactions.
- Reduction of order errors by 75% within six months
- Increasing budget compliance through systematic cost control
- Improving supplier relationships through more professional processing
Current developments and effects
The dual control principle is constantly evolving and is shaped by new technologies and regulatory requirements.
AI-supported risk detection
Artificial intelligence is revolutionizing the application of the dual control principle through automatic risk analyses. AI systems identify suspicious patterns and initiate appropriate checking procedures. This enables risk-based approval processes that optimize efficiency and security.
Mobile approval processes
Increasing digitalization enables mobile approvals even outside the office. Managers can make critical decisions promptly without compromising security standards:
- Biometric authentication for mobile devices
- Encrypted data transmission
- Audit trails for mobile approvals
Blockchain-based transparency
Blockchain technology creates immutable audit trails for the dual control principle. Every approval step is documented in a cryptographically secure manner, which creates trust, especially in supplier portal interactions and complex supply chains.
Conclusion
The dual control principle remains an indispensable control instrument in modern Procurement that minimizes risks and ensures compliance. Efficiency and security can be optimally combined through intelligent digitalization and risk-based application. Companies should implement the principle strategically and continuously adapt it to changing requirements. The future lies in AI-supported, adaptive control systems that guarantee protection and speed in equal measure.
FAQ
What exactly does the dual control principle mean in Procurement?
The dual control principle requires at least two people to independently review and approve critical purchasing decisions. This prevents individual decisions in important procurement processes and increases the level of control. Typical areas of application are supplier selection, contract conclusions and orders above defined value limits.
From what amounts should the dual control principle be applied?
The value limits vary depending on the size of the company and industry. Typical thresholds are between 1,000 and 10,000 euros for standard orders. Lower limits may also be appropriate for strategic suppliers or critical materials. What is important is a risk-based assessment instead of rigid amount rules.
How can the dual control principle be digitized?
Modern e-procurement systems automate approval workflows based on predefined rules. Orders are automatically forwarded to the right reviewing body and approvals are made digitally with a time stamp and audit trail. Mobile apps enable approvals on the move, while AI systems can recognize suspicious patterns and trigger additional checks.
What are the disadvantages of the dual control principle?
The main disadvantages are longer process throughput times and higher personnel costs due to duplicate checks. Poorly defined processes can lead to a diffusion of responsibilities and delays. There is also a risk of collusion between inspectors. These disadvantages can be minimized through intelligent automation and risk-based application.
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