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The 15-Day Nightmare: Why Your PR to PO Cycle is Killing Your Business
Every procurement team dreams of designing a frictionless, two-day Purchase Request to Purchase Order (PR to PO) cycle. The reality for most organizations, however, is a sluggish average of 10 to 15 days. When the business needs to move fast, a cumbersome procurement process forces stakeholders into a frustrating choice: wait weeks for a basic purchase to clear internal hurdles, or bypass procurement entirely to get the job done.
In this week's Proc and Roll podcast, Conrad, Natasha Gurevich, and Zach roll up their sleeves to dissect the root causes of slow cycle times and outline actionable strategies to engineer a faster, more effective operating model.
Main Topics Discussed:
- The 15-Day Reality: Why organizations struggle to break out of the 10-15 day PR to PO cycle and how slow processes actively incentivize rogue spend.
- The AI and Outsourcing Fallacy: Why layering new technology or outsourcing over a fundamentally broken, friction-heavy process only results in faster garbage.
- Segmenting by Risk: The danger of applying a "one-size-fits-all" risk assessment to every purchase, and how to fast-track low-risk buys.
- Accelerating with P-Cards and Catalogs: How expanding procurement cards and internal catalog adoption can instantly clear bottlenecks for high-volume, low-dollar transactions.
- Budgeting Your Risk: Why CPOs must take ownership of the end-to-end process and enforce strict cycle-time SLAs with cross-functional partners like Legal and IT.
Transcript: Proc-N-Roll | The 15-Day Nightmare: Why Your PR to PO Cycle is Killing Your Business
Conrad: Hello, everybody, and welcome back to Proc and Roll, your guide to practical procurement. The three amigos are back together. Zach, the man, the myth, Natasha. She's even in her home office, so we're gonna have even more of her intellectual prowess. And I'm Conrad, coming to you from the Rocky Mountains. Today we're going to dive into one of the questions that you have brought to us about how do we make the process faster. People talk about PR to PO process time. What is included in that end-to-end process? Which are the slow ones that are causing the most problem? Natasha, what actually are we talking about in this PR to PO cycle?
Natasha: I reached out to a couple of former colleagues to collect some data samples, and everyone is dreaming and trying to design their internal processes to hit two-day rec-to-PO, but everyone is averaging between 10 to 15 days. Frictionless and user-friendly processes are still hard to build. As much as we want to say that AI will fix it all, we already fell into that fallacy once with outsourcing. If we outsource garbage in, then we're going to get something pretty out—not the case. Regardless, we can negotiate phenomenal deals and save companies millions and millions of dollars, but for as long as we don't figure out an easy process that users don't try to bypass, we will not be the darlings of the company.
Conrad: Procurement is the back office; it is the pit stop for the business. We like to think we're winning or losing, but it's the business winning or losing. If they can't work that winning through procurement, through finance, through IT, they will go around us because they are committed to win. Fix it or get out of the way. They have no tolerance for us running a slow process.
Zach: I want to go deeper into the actual process because as usual with procurement, it's not always down to procurement for why things go slow. Where exactly is the bottleneck? You see problems across the entire process, even before intake. Take a relatively infrequent buyer—even finding where to go for procurement to begin with, and then navigating a form that asks for all sorts of details is cognitively quite a lot. That's why things like catalogs and P-cards help a lot. If you look at a really fast-growing business, P-cards are one of their favorite things to give people because it's fast.
Natasha: With your appreciation for P-cards, do you think they should have a spending limit? Are we inadvertently promoting bad behavior when people start bypassing and breaking purchases into parts to fit limits?
Conrad: It is definitely opening the door for that kind of misbehavior. Whatever you do, you have to put governance in place that lines up with your culture. When I was at Adobe, I got data scientists to come in and look at all of this card spend data to look for weird anomalies. This is the high-volume, low-dollar, low-risk spend. If you're not doing procurement cards, that might be the very first thing that you should do to automate.
Zach: Using AI to monitor card spend has become cheaper and faster and easier than ever. It also has to be a culture that goes from the top down. The CFO specifically needs to be the one to tell the board that this is the new way of doing things.
Conrad: What's the next way to scoop it up if you can't do a procurement card? Are procurement teams still being required to have a catalog item owner uploading them to these tools? What does the modern catalog look like?
Natasha: It is very, very useful in manufacturing environments. It offers much faster speed to market, complete spend visibility, and risk is better controlled. I'd say that catalog mentality is still very much alive and is underutilized even in businesses primed for catalogs.
Conrad: I did some research and asked, what percentage of the procurement time is invested against transactions? The number one time consumer in that whole thing is contracting, legal, security, and privacy, making up 25 to 30 percent of the total time. The second one is supplier onboarding, at 20 to 25 percent. Approval workflow blows my mind and is 15 to 20 percent. Rework is 10 to 15 percent, and intake confusion is five to ten percent. All these other things need to be fixed if your process is going to go fast.
Natasha: I'm observing across different companies that a one-size-fits-all rule applies to too many purchases. The purchases that are not as risky or critical for the business are still treated with all the bells and whistles of control and regulation that may not necessarily be required.
Zach: The trouble with that, Natasha, is they ask broad-brush questions at intake. You select technology, and it asks if you are passing data. If you click yes, that triggers a whole bunch of more questions or assessments. There's not enough granularity in how companies categorize these things.
Conrad: Very often the procurement team is acting like victims of "this process is really slow because IT or legal or whoever is really slow". That's not okay. You're the leader of procurement. There's nobody else in the organization to step up and say, "I own this process, and it's not okay if this negatively impacts the business". You have to work your way backward and say, if we have 20 days, then legal gets three days and IT gets three days. We are not in the business of stopping every single risk because this other risk over here, which is called business failure, is as important or more important. We're trying to win.
Zach: Ultimately what it's about is the operating model. You need to look at data, process, roles, and who's accountable for SLAs. The number of companies I see that don't have a clearly defined category taxonomy that is maintained is shocking.
Natasha: I'll share with you a piece of data. I have been screening maybe 50 of my peers for a global CPO search, and out of 50, only two knew what orchestration is and who the players are. Many of us on the older side don't even pay attention to what's happening today, which is why we're addressing a 30-year-old problem with a 30-year-old toolshed. We CPOs have to learn these new things.
Conrad: Hundred percent. It feels to me like we've kind of opened up Pandora's box of the operating model again around some of these areas. All right, everybody, we'll be back soon with more tips to help you improve your process. As always, don't forget to like, comment, and share and join us again soon. Thanks, everybody.
Zach: See you guys. Bye. Proc and roll.
Natasha: Proc and roll!
This transcript has been edited for clarity while maintaining all substantive content