The Procurement Glossary » Lean Procurement

Lean Procurement

Strategy & Operations

Definition

Applying lean principles to eliminate waste and add value across procurement processes.

Explanation

Lean procurement targets non-value-adding steps — waiting, rework, duplicate approvals, excess inventory — to speed flow and cut cost. It emphasises standard work, pull-based demand and relentless removal of waste, complementing automation.

Example

A lean review removes two redundant approval steps, cutting the purchase-order cycle in half.

Related terms

• Continuous Improvement — An ongoing effort to incrementally improve processes, performance and outcomes over time.
• Cycle Time — The total time taken to complete a defined process, such as procure-to-pay or requisition-to-order.
• Just-in-Time (JIT) — An inventory strategy where materials arrive exactly when needed, minimising stock held.
• Process Cost per Order — The internal administrative cost of processing a single purchase order, covering staff time, systems and overhead.

Frequently Asked Questions

What is Lean Procurement?

Applying lean principles to eliminate waste and add value across procurement processes. Lean procurement targets non-value-adding steps — waiting, rework, duplicate approvals, excess inventory — to speed flow and cut cost. It emphasises standard work, pull-based demand and relentless removal of waste, complementing automation.

Can you give an example of Lean Procurement?

A lean review removes two redundant approval steps, cutting the purchase-order cycle in half.

Back to the procurement glossary | Procurement concepts | Contact us