The Procurement Glossary » Cycle Time
Cycle Time
Procure-to-Pay
Definition
The total time taken to complete a defined process, such as procure-to-pay or requisition-to-order.
Explanation
Cycle time is a headline efficiency measure across procurement. Shorter cycles mean faster supply, happier users and lower process cost. It is tracked end to end and by stage to find bottlenecks.
Example
The team benchmarks P2P cycle time monthly and targets a 20% reduction through automation.
Related terms
- Requisition-to-Order Cycle Time — The elapsed time from a requisition being raised to a purchase order being issued to the supplier.
- Procurement KPI — A quantified measure of procurement performance, such as savings, cycle time, compliance or supplier OTIF.
- Process Cost per Order — The internal administrative cost of processing a single purchase order, covering staff time, systems and overhead.
- Lead Time — The elapsed time between placing an order and receiving the goods.
Frequently Asked Questions
What is Cycle Time?
The total time taken to complete a defined process, such as procure-to-pay or requisition-to-order. Cycle time is a headline efficiency measure across procurement. Shorter cycles mean faster supply, happier users and lower process cost. It is tracked end to end and by stage to find bottlenecks.
Can you give an example of Cycle Time?
The team benchmarks P2P cycle time monthly and targets a 20% reduction through automation.
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