In many cases, approval processes – both for purchase requisitions and purchase orders – are labor-intensive and take a disproportionate amount of time.

By analyzing the individual phases of an approval process, you can determine patterns that frequently lead to long run times (e.g. in the context of company codes, suppliers, materials, or purchasing groups). This root cause analysis will enable you to optimize your approval strategies and thereby reduce costs and throughput times.

Manual corrections in the ordering process are frequently time-consuming and expensive.

You may need to identify systematic error patterns that occur when changing prices and quantities or performing reversals. In many cases, this information correlates with poorly maintained material master data.

Maverick buying leads to uncontrolled planning, and thus to poorer price conditions.

To counteract this, it's important to pinpoint purchase orders for which your purchasing department was bypassed and determine which plants, purchasing organizations, suppliers, and materials are most frequently affected. Meanwhile, a high degree of transparency will enable you to continuously monitor compliance with process standards.

Delayed deliveries can have very serious consequences.

You therefore need to identify recurring delays – along with unreliable suppliers and the materials (and material groups) affected. You can capitalize on these findings and take appropriate measures. Make sure to request and evaluate order confirmations, as well.

In many cases where payment deadlines are missed, it is not possible to take advantage of arranged discounts.

Determine the underlying causes in the invoice release process – from entry and processing right up to approval – to make sure payments are made on time and corresponding discounts are secured. You'll also be able to identify whether you have benefited from optimal terms of payment and suppliers' discounts for major customers.

Manual process activities are frequently costly and time-consuming and may be suitable for automation.

Based on the level of automation of individual process steps, you can gain the transparency you need to automate further aspects (e.g. in creating purchase orders, recording goods receipt, or entering/processing invoices). This will enable you to significantly reduce throughput times and costs.