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    Blog Image

    Why Procurement Approvals Take Long (And How to Speed Them Up)

    • Approvers often take a long time to process purchase requests, leading to delays in the procurement cycle.
    • These delays can be eliminated by replacing manual tasks with automated approval workflows.
    • Automation expedites approval, accelerates procurement and allows the team to focus on strategic tasks.

    July 03, 2025 | Procurement Software   4 minutes read

    Let’s first look at an example to understand procurement approvals. 

    A hydraulic press in a factory starts leaking at 9 am. The maintenance team finds a blown $10 rubber gasket. 

    Now, procurement rules demand a manager’s approval for any spare part and a second sign-off from finance for over $5 purchase. 

    The machine remains idle for 8 hours. By the time they got the gasket the next day, three shifts of workers did not know what to do. Many unfinished units had jammed the assembly line, and the factory had lost significant amount in productivity. 

    All because teams could not approve a purchase that needed a little more than the set limit. Situations like these can be very frustrating. To proceed with the purchase, procurement often waits a long time to get the approval. Why? 

    The executive whose signature is needed is not in the office. Or there is a lot of back and forth between internal teams with all the paperwork. Or they are still waiting for a final approval on email.

    For procurement teams, this is nothing new. It is in fact a routine situation. The team has become used to waiting long periods for approval. At times, multiple approvals are required for a big budget purchase. There is sequential approval where the purchase request moves from one approver to another. 

    These delays in getting approvals extend throughout the purchasing cycle, hurting internal stakeholders who may have raised a purchase requisition a long time ago. 

    What’s the way out? Is there a way to expedite the process and speed up the requisition-to-order cycle? 

    No doubt, there is. But first, let’s dive deep into the approval process. 

    The Never-Ending Approval Process 

    The procurement process starts when one of the business functions recognizes the need for a product or service and raises a purchase requisition. This is shared with different stakeholders for their review and approval. 

    Excessive bureaucratic steps and unclear roles create bottlenecks, especially when responsibilities are not well-defined. Discrepancies in purchase requests such as missing vendor information can also lead to delays. 

    Multi-layered approvals are often in place for validating high-value purchases. These require checks from finance, legal and senior management. Each layer is designed to ensure compliance, control, and risk mitigation. But these layers involve paperwork, spreadsheets and email threads. 

    In large enterprises, approvals are often tied to scheduled meetings. If meetings are postponed or agendas are too full, approvals are delayed until the next session. At times, approvers may require additional clarification for validation, leading to back and forth between requisitioners and approvers. 

    For new suppliers, teams may want to conduct due diligence. These necessary checks are time-consuming yet crucial for risk mitigation. Internal controls for approval also aim to check compliance and curb maverick spending.

    Plan to Streamline Procurement Approvals?

    Replace manual tasks with digital workflows

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    Types of Procurement Approval Workflows 

    Linear: 

    In a linear workflow, purchase requests move sequentially and step-by-step through a predefined chain. There is clear accountability at each stage. This workflow is ideal for compliance-heavy, high-cost purchases. However, delay at one stage can slow down the entire process. 

    Parallel:

    In a parallel workflow, multiple stakeholders review the purchase request simultaneously. For example, finance, legal and IT teams approve in parallel. As there is no waiting for sequential signoffs, this approach is more suitable for routine, low-risk purchases. 

    Hybrid: 

    The hybrid approach combines both types of workflows. Parallel approvals within a department may be followed by sequential approvals for budget and final sign-off. 

    How to Streamline Procurement Approval Workflows 

    Consider several factors while designing best-in-class procurement approval workflows. 

    1. Align with policy: 

    Align the approval workflow with the company’s hierarchical structure and reporting lines. 

    2. Involve stakeholders: 

    Identify key stakeholders in the approval process, including requesters, approvers, and finance teams. Facilitate collaboration among stakeholders through automated notifications, reminders, and centralized document management. 

    3. Adopt a risk-based approach: 

    Prioritize approvals based on purchase amount, category and other factors. Scrutinize high-risk purchases while automating low-risk purchases. 

    4. Leverage procurement software: 

    Use AI-powered procurement software that automates manual workflows, speeds up approvals and integrates with existing systems. Predefined workflows route purchase requests to the right stakeholders based on amount, department, or category. Real-time notifications allow approvers to act on the go and improve responsiveness. If an approver does not respond within the set time, the system can escalate to the next reviewer. 

    Benefits of Automating Approval Workflows 

    Still wondering how your team benefits by replacing manual tasks with automated approval workflows. Look at these benefits: 

    Speed up approvals: 

    Digital procurement platforms can automatically route purchase requests and approvals based on predefined rules. They eliminate delays caused by manual signoffs and move routine, low-value approvals quickly through the system. 

    Faster checks: 

    Approval workflows integrate with existing ERP and accounting systems, leading to seamless data flows and budget checks. The system can automatically verify available funds before approving. 

    Improve collaboration: 

    Digital platforms enable better communication and document sharing among stakeholders, speeding up the review and approval process. All stakeholders can track requisitions, approvals and orders in real time. 

    Reduce errors: 

    Automation eliminates human errors in data entry and document processing, which lead to delays in traditional procurement processes. 

    With an automated approval system, procurement can also engage in continuous monitoring and improvement. It can track key performance indicators related to approval cycle time and conduct regular process audits. Based on user feedback, it can enhance workflows to meet the needs of all stakeholders. 

    Automate your procurement approval process with GEP SOFTWARE.

     

    Tags: Procurement approvals

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