How many days have you taken to prepare a Purchase order and submitted to Supplier?
Usually we have taken for a new purchase order, I mean, prepare RFQ, negotiating and preparing/approval of P.O. have been 16 working days (3 weeks) and you?
If 16 days is good enough turn around of POs in your organization, then it should serve your purpose. Cycle time should be reviewed regularly in order to shorten them optimally according to need, budget, suppliers stock.
We think it is too long time, thats sould be reduced the time will be 1 weeks or less.
So, you prepare the RFQ can a day to get the feedback after that you can negotiate about the price, quality, stock and delivery time may be almost 2 days and if all are oke you issue the po and can release in same day. So the total the time is only 4 days.
I thought it pretty much depends on what kind of things that you are buying?
correct! i agree with alexpung.the cycle will be different, and strikingly so, for diferrent products. eg., who can imagine the cycle time to be same for procuring a new lathe machine and buying nuts and bolts!!
It should depend on the Value and also class A,B,C material.
Most of he organizatin have separate workforce whose looking after diff items purchasing.
Cycle tie should be 2 weeks and not more than that.
It is possible that Cycle time is 2-4 days, if you are dealing with known supplier. But, if one is just starting negotiations with new supplier then, I believe, 2 weeks should be enough,
Each organization has his own ideal cycle time. Many different things can influence this cycle (quality of the specification, amount of money envolved, internal costumers, procurement structure, adopted practices and many other reasons). In fact If you can surpass your current level of service you’ll be in a good way.
What is good for your organization is not necessarily good for mine.
From my point of view, it is much depending on the organisation structure and process flow. It will take the safety stock, cash flow, leadtime, replenishment level etc …. into consideration.
It propably depends on the internal procedures that is in place in the organisation. As for us it can be 2 to 8 days.
The majority of Purchase Orders created within our Facility are prepared and submitted to the Supplier within the same business day. Any 1 (one)line orders are usually held until additional supplies can be added to keep with our Less PO’s/More Lines per PO mentality. All critical supplies are ordered immediately regardless of size of the PO or the familiarity with the Vendor. RFQ’s or RFP’s can literally take weeks to submit but in those instances, you are waiting on outside information, so as long as the Vendors have a deadline in place, there’s not much else that can be done.
It propably depends on the internal procedures that is in place in the organisation. As for us it can be 2 to 8 days and over
Cycle time is purely depending upon the materials and origin of material
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