Through the Coupa cloud platform, we track hundreds of Coupa Benchmark is designed to provide finance and procurement organizations with broad visibility and guidance by sharing data on some of these key performance indicators. It includes metrics about ten of the areas where we commonly find that companies do not know how good they can be. Over the coming weeks, we'll be sharing these with you in depth.metrics in order to help us continually improve our platform and help our customers be successful. The annual
This week's featured benchmark is Requsition-to-Order cycle time. This is
the length of time it takes between a requisition being submitted, approved and an order being issued.
According to our data, companies in the $250 million to $1.5 billion range averaged requistion-to- order times of 16 hours. They were followed closely by companies larger than $1.5 billion in annual revenue, with req-to-order times of 17 hours. Companies with under $250 million in revenues averaged 27.5 hours. By hours, we mean total hours, not working hours.
Why does requistion to approval time matter?
Requistion approval cycle time should match the pace of your business. When an employee needs a business-critical item, long approval cycles hamper their ability to conduct busines, and contribute to maverick spend by employees. If it takes too long to get necessary products or services, people will bypass standard processes and systems.
Improving requistion approval workflows
Cloud and mobile technologies have “democratized” the approval process; now even small companies can use technology to get approvals done quickly. Here are some concrete ideas for improving requistion to approval workflows:
About the benchmark: This data was extrapolated from customer usage metrics on the Coupa cloud platform, comprising hundreds of thousands of global users, over 750,000 suppliers, millions of transactions and billions of dollars of spending. The performance metrics arebased on aggregate data; no individual companies are identified.
To avoid skew from very small organizations or those that are very new to Coupa, we've only included customers that have accrued a year's worth of spending and at least $5 million in P.O. spending through Coupa. For reported averages, the extreme outlying data points are eliminated to normalize the data. To learn more click here.
Ravi Thakur is Vice President, Customer Succes, for Coupa.