The Procurement Glossary » Requisition-to-Order Cycle Time
Requisition-to-Order Cycle Time
Procure-to-Pay
Definition
The elapsed time from a requisition being raised to a purchase order being issued to the supplier.
Explanation
This metric measures how fast the internal buying pipeline moves. Long cycle times frustrate users and drive maverick spend; automating approvals and PO creation is the main lever to shorten it.
Example
Automating approvals cut average requisition-to-order time from four days to four hours.
Related terms
- Cycle Time — The total time taken to complete a defined process, such as procure-to-pay or requisition-to-order.
- Approval Workflow — The defined sequence of authorisations a requisition, order or invoice must pass through before it can proceed.
- Purchase Order (PO) — A buyer's official document authorising a purchase from a supplier, stating items, quantities, prices and terms; once accepted it forms a contract.
- Procurement KPI — A quantified measure of procurement performance, such as savings, cycle time, compliance or supplier OTIF.
Frequently Asked Questions
What is Requisition-to-Order Cycle Time?
The elapsed time from a requisition being raised to a purchase order being issued to the supplier. This metric measures how fast the internal buying pipeline moves. Long cycle times frustrate users and drive maverick spend; automating approvals and PO creation is the main lever to shorten it.
Can you give an example of Requisition-to-Order Cycle Time?
Automating approvals cut average requisition-to-order time from four days to four hours.
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