Measures the time it takes from creating a purchase order until it is finalized and the goods are shipped or delivered.

What it Measures ?

Time it takes to create a purchase order after request.

Relevant StakeHolders 

Procurement Ops, Team Leads

In-depth Use Case / Real-world Example

A manufacturing company that produces electrical transformers tracks Purchase Order Processing Time to evaluate how long it takes from the creation of a purchase order to when the goods are shipped by the supplier. For example, if it takes an average of 5 days to process a purchase order, but the company aims for 3 days, the procurement team can identify inefficiencies in the process and work towards reducing processing time. Shorter processing times can lead to faster deliveries and reduced production delays.