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Lean management in procurement: how to eliminate waste and improve performance

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Published By
Jeremy Ferrer
Tags
Purchasing skills

Procurement processes are often slowed down by unnecessary steps, scattered approvals and data that are difficult to consolidate. This complexity leads to inconsistent lead times, a high administrative burden and a lack of visibility on real performance. Lean management applied to procurement offers a structured response: remove waste, standardise process flows and improve the reliability of operations.

This approach, widely used in manufacturing, is becoming essential for organisations facing a growing number of requests, heterogeneous workflows and approval cycles that are hard to control. The objective of lean in the procurement function is simple: shorten processing time, secure information and eliminate low value-added activities. Many companies begin this transformation after running a structured optimisation programme, for example by working on the optimisation of purchase request management, which reveals friction points and sources of unnecessary complexity.

Lean principles are now widely documented in professional references, including work published by McKinsey on operational excellence, showing how reducing waste in support processes generates quick wins without compromising service quality. In this article, you will discover a concrete method to apply lean management to your procurement activities: map the process flows, identify waste, implement a standardised workflow, automate repetitive tasks and manage performance over the long term.

Understanding lean management applied to procurement

Core lean principles in a procurement environment

Lean management is about creating value by eliminating all activities that do not contribute to it. Applied to procurement, this principle helps reduce complexity, accelerate process flows and improve data quality. The approach relies on several pillars: visualising processes, removing unnecessary steps, standardisation, continuous improvement and regular performance reviews. The goal is to obtain a process that is smooth, predictable and easy for procurement teams to manage.

Why procurement processes concentrate so much waste

The procurement function involves multiple stakeholders, several approval layers and information exchanges that rarely flow through a single channel. This fragmentation creates endless follow-ups, approximations and inconsistent lead times. The situation becomes even more complex when supplier data is scattered across several tools: when working on supplier management, many organisations realise that even a minor inconsistency can significantly slow down the processing of requests.

The strategic benefits for a procurement organisation

Adopting lean in procurement delivers several strategic advantages: reduced processing time, more reliable data, better coordination between procurement, finance and operations, lower administrative cost and clearer visibility on performance. These approaches echo the recommendations published by Harvard Business Review on aligning operational excellence with decision-making, where improving support processes is identified as a major competitiveness driver. This is particularly true for high-volume, low-value transactions such as C-class purchases (achats de classe C), where administrative workload tends to explode if processes are not standardised.

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Identifying the 7 wastes in the procurement process

Applying lean management means identifying sources of waste at every step of the process, from the initial need to goods receipt. These inefficiencies typically creep in through poorly standardised or poorly synchronised workflows, as shown in many procurement optimisation projects carried out in organisations facing a surge in administrative volume. Understanding exactly where time is lost and where duplication occurs allows you to focus improvements on the areas that will have the greatest impact on overall performance.

1. Administrative overprocessing

This waste appears when teams spend too much time on manual checks or repeat the same verifications. Overly complex workflows lead to processing the same information several times, which lengthens lead times and puts unnecessary pressure on internal resources.

2. Waiting time between steps

Inconsistent lead times often stem from late approvals or a lack of availability from key stakeholders. High variability in waiting time is a clear signal that processes are not under control.

3. Unnecessary movement in information exchanges

Endless email threads, follow-ups and scattered documents slow down operations and increase the risk of error. The most efficient organisations rely on structured information repositories and collaborative tools to reduce these friction points.

4. Excessive document stock

Accumulating multiple versions of the same document, storing obsolete forms or multiplying supporting files creates a major waste of time. Document standardisation is essential to secure data quality.

5. Overproduction and duplicates

This type of waste occurs when a request is created more than once or when a department re-enters information that already exists in another system. Overproduction is aggravated by the absence of a single channel and the duplication of data sources.

6. Poor quality in request processing

A poorly formulated request, a coding error or inconsistent quantities generate costly corrections. Poor quality automatically increases cycle time and overloads the teams.

7. Fragmented information sources

This waste occurs when the information needed to process a request is scattered across several tools or shared without a clear structure. Organisations that aim to improve document reliability often rely on data repositories aligned with ISO-inspired standardisation practices, in order to reduce discrepancies between different data sources.

Table – The 7 wastes applied to the procurement process

Waste Description Impact on performance
Overprocessing Multiple checks, redundant actions Longer processing time
Waiting Approval delays, irregular validation High variability in cycle time
Unnecessary movement Follow-ups, email chains, manual handling Risk of error and operational overload
Document stock Version accumulation, lack of a central repository Loss of time and inconsistencies
Overproduction Duplicate requests, redundant forms Unnecessary extra work
Poor quality Input errors, inconsistent data Costly rework and slower process
Fragmented information Data scattered across multiple tools Risk of error and loss of visibility

Diagnosing performance with a lean audit

Before transforming any process, lean management recommends starting with a structured observation of reality. In the procurement function, this means mapping the process flows, measuring cycle times and identifying bottlenecks. An effective diagnosis goes beyond cost analysis: it focuses on lead times, data quality and the administrative workload on teams. This approach is even more relevant when it is supported by a robust procurement performance dashboard that highlights gaps between the theoretical process and how it actually runs.

Mapping the flows: from request to receipt

The first step of the diagnosis is to visually represent the entire path followed by a request, from the initial expression of need to receipt and availability of the product or service. Tools such as Value Stream Mapping help distinguish between value-adding activities and those that simply add lead time or complexity. This mapping quickly reveals overload zones, redundant steps and poorly defined interfaces.

Measuring cycle times to objectify bottlenecks

Once flows have been mapped, the next step is to quantify lead times between each step: approval time, processing time, queue time and time spent resolving questions. Comparing the truly useful time with total processing time helps identify the most powerful levers for improvement. This factual measurement is essential to prioritise actions and convince stakeholders of the need for simplification.

Identifying bottlenecks

Bottlenecks are those steps in the process that concentrate most of the delays, follow-ups or inconsistencies. They are often found at decision points (hierarchical approvals), at interfaces between departments or in manual control activities. Specialist lean resources, such as those provided by the Lean Enterprise Institute, show that these bottlenecks must be addressed first to achieve visible improvements in the early phases of the project.

Prioritising actions with an impact/effort matrix

A lean diagnosis is not just a list of issues: it must lead to a realistic action plan. The impact/effort matrix is a useful tool for classifying initiatives into four categories: quick wins that are simple to implement, high-impact projects requiring more resources, secondary improvements and low-value actions. This sorting makes it possible to focus resources on the most profitable initiatives while rapidly demonstrating the value of the transformation.

Table – Key indicators for a lean procurement audit

Indicator What it measures Use in the audit
Average request processing time Duration of the full cycle Identify excessively slow processes
Share of value-added time vs waiting time Proportion of value creation Measure the potential to reduce lead times
Number of stakeholders per request Process complexity Spot overly complicated approval chains
Error rate in requests or orders Quality of initial information Determine standardisation needs
Rate of returns or corrections Process non-quality Assess the impact of rework on workload
Share of repetitive manual tasks Level of automation Identify automation and tooling opportunities

Standardising and securing procurement processes

An effective lean management approach requires the standardisation of practices. As long as each department relies on its own habits, local forms or specific approval pathways, the procurement function remains exposed to delays, errors and misunderstandings. Standardisation does not mean making processes rigid: it provides a common framework that makes process flows clearer, faster and more reliable for all stakeholders.

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Create a single, harmonised workflow

The first step is to define a single, clear purchasing workflow shared by all teams. This flow should specify roles, mandatory steps, required information and escalation rules in case of a blockage. A harmonised workflow reduces treatment variability and prevents each business unit from building its own approval circuits. It then becomes much easier to spot friction points and apply lean principles.

Set up a single entry point for all requests

Multiple channels (emails, chat tools, local forms, shared files) are a major source of complexity. Implementing a single entry point for all purchase requests makes it possible to centralise information, track the status of each case and reduce data loss. This approach is aligned with a broader digitalisation of procurement, where employees have a clear channel to submit their needs and follow progress.

Reduce unnecessary approvals

In many organisations, approval circuits have grown over time and become opaque and time-consuming. Lean management encourages a review of these circuits starting from a simple question: what value does each approval actually bring? By distinguishing essential approvals from redundant controls, it becomes possible to reduce the number of stakeholders, clarify responsibilities and accelerate decisions without lowering control standards.

Improve request quality from the start

A standardised process also depends on the quality of information provided when the need is first expressed. Incomplete forms, vague descriptions or missing references trigger multiple back-and-forth exchanges. Defining clear request templates, supported by concrete examples and mandatory fields, helps secure process flows end to end. The more accurate the initial request, the faster and smoother downstream processing will be.

Table – Effects of standardisation on the procurement process

Process element Before standardisation After standardisation
Request channels Multiple entries (emails, files, local forms) Single, traceable entry point
Forms Varied formats, incomplete information Homogeneous templates with mandatory fields
Approvals Layered approvals, limited visibility Clear path, defined roles, appropriate approval levels
Request tracking Partial visibility, manual follow-ups Shared status and structured tracking
Administrative workload Frequent rework, double data entry Smoother processing, limited corrections

Automating low value-added procurement activities

Even with strong standardisation, many tasks related to procurement remain repetitive: simple checks, recurring approvals, manual data entry or basic reconciliations. Lean management recommends focusing human resources on high value-added activities and assigning the rest to suitable tools. Automation helps reduce lead times, lower the risk of error and make the process more predictable.

Automate recurring approvals

A significant proportion of approvals is based on stable rules: spend thresholds, spend categories, supplier types, nature of the request. Implementing automated approval rules makes it possible to process immediately the requests that comply with these criteria, while reserving human intervention for exceptions. This strengthens the consistency of decisions and frees up time to analyse more complex cases.

Reduce manual data entry and repetitive checks

Multiple data entry in different systems, systematic re-reading of documents already validated or purely formal checks are classic sources of waste. System integration, prefilled templates and the use of software robots for certain administrative tasks significantly reduce operational workload. Many organisations rely on invoice automation powered by AI to reduce delays and secure the reconciliation between purchase orders, deliveries and invoices.

Use AI to analyse flows and detect inefficiencies

Artificial intelligence can enhance a lean approach by highlighting patterns that are difficult to detect manually: peaks in demand during specific periods, unusually long lead times in a given category, discrepancies between comparable suppliers, etc. AI also helps direct teams towards the most critical anomalies by prioritising cases that generate the highest costs or delays. It does not replace business judgement but provides a solid analytical base to decide where to focus improvement efforts.

Lighten the daily workload of procurement teams

The objective of automation is not to dehumanise procurement, but to refocus teams on steering, negotiation, risk management and stakeholder engagement. By eliminating part of the repetitive tasks, procurement professionals have more time to structure category strategies, anticipate needs and work on transformation projects. This is where lean management becomes tangible: fewer mechanical tasks, more value created.

Building a lean culture in the procurement function

Beyond tools and workflows, lean management is a collective mindset. An optimised process can remain efficient over time only if teams adopt a culture of continuous improvement. This evolution is not limited to mastering methods: it also affects how people collaborate, solve problems and share information on a daily basis.

Train teams in lean principles

The first step is to raise awareness among employees about sources of waste, problem-solving methods and standardisation best practices. Training should be simple, practical and focused on real cases encountered in the company. Some organisations complement this with performance management tools, for example by using resources derived from procurement performance management methods, helping teams better understand the impact of their work on the overall process.

Set up regular performance routines

To embed lean over the long term, it is essential to implement suitable performance routines. Short weekly check-ins help quickly identify anomalies, while monthly reviews provide a consolidated view of overall performance. These routines help teams visualise progress, adjust priorities and maintain a consistent level of discipline.

Strengthen collaboration between procurement, finance and operations

Procurement process performance depends as much on cross-functional coordination as on tooling quality. Aligning objectives, formalising responsibilities and scheduling regular cross-team exchanges reduces misunderstandings and improves process flow. This collaborative work encourages a more global vision, where everyone understands how their actions influence the quality and speed of the entire process.

Share best practices to improve consistency

Procurement teams benefit from documenting successful cases, effective request templates and solutions to recurring issues. Capturing best practices builds a common knowledge base that makes it easier to onboard new team members and avoid redoing the same work several times. A lean culture is built on transparency, cooperation and a willingness to learn continuously.

Measuring gains and managing procurement performance over time

The effectiveness of lean management is proven over time. Designing an optimised process is an important milestone, but the real value comes from regular performance monitoring. Procurement organisations that successfully complete this transformation rely on clear indicators, regular reviews and results-oriented steering. This approach is especially effective when integrated into a broader cost optimisation strategy, where every improvement helps secure the entire process flow.

Define indicators to track progress

Lean performance management relies on simple metrics that are directly linked to process efficiency. The most commonly used indicators include average processing time, the share of automated tasks, data quality, rework rate and workflow stability. These measures help assess the fluidity of operations and quickly identify areas that need attention.

Regularly analyse gaps between targets and reality

Comparing actual results with set targets helps pinpoint discrepancies and understand their root causes. A gap may be due to a lack of training, a process that is poorly understood, temporary overload or a step that has not been standardised. The analysis should be fact-based, solution-oriented and shared with teams to strengthen their understanding of the process.

Identify initiatives with the best return on investment

Lean management helps companies focus their resources on the most profitable actions. By systematically assessing impact and required effort for each initiative, it becomes easier to prioritise projects. Combining a precise diagnosis, reliable indicators and regular feedback makes it possible to achieve measurable ROI without multiplying complex initiatives.

Table – Examples of gains achieved through lean procurement

Improvement lever Potential gain Lasting effect
Workflow standardisation 20–35% reduction in processing time More predictable and consistent processes
Targeted automation Up to 40% less administrative workload Better allocation of team capacity
Improved request quality 25–50% drop in rework rate Fewer correction loops
Regular indicator reviews Faster, better-informed decisions Lasting alignment across teams
Bottleneck reduction Shorter critical waiting times Smoother flows and fewer follow-ups

Conclusion

Lean management applied to procurement offers a structured framework to eliminate waste, reduce complexity and strengthen process reliability. By mapping process flows, identifying bottlenecks and standardising practices, organisations can shorten processing times, limit rework and improve data quality across the entire journey, from the initial request to service delivery.

Combined with targeted automation of repetitive tasks and regular performance reviews, this approach allows procurement teams to focus on high value-added missions: negotiation, stakeholder relationship management, risk management and support for transformation projects. Lean then becomes a long-term performance lever, aligning operational, financial and organisational priorities in a single, shared framework.

Contact our experts to analyse your procurement processes, identify your main sources of waste and implement a lean approach tailored to your organisation.

You can write to us directly via our contact page to define the next steps together.

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FAQ

How do you start a lean journey in the procurement function?

The starting point is to map the actual process flows, from the initial request to goods receipt. This visualisation highlights redundancies, delays and unnecessary interventions. A simple first initiative is to harmonise request forms and clarify roles at each step of the process.

What are the quickest benefits to obtain?

The most visible gains often come from workflow standardisation, reducing the number of approvals and simplifying information exchanges. These actions shorten lead times without requiring complex technical projects.

Does lean require a dedicated digital solution?

You can start without a tool, but technology makes it easier to collect data, set up a single entry point and automate repetitive tasks. Some companies begin with a structured analysis, for example by working on the organisation of their procurement processes, before rolling out a dedicated solution.

How do you measure the impact of a lean procurement project?

Assessment is based on simple indicators: average processing time, share of requests requiring rework, administrative workload, data quality and flow regularity. Comparing these metrics before and after the improvements helps calculate real gains.

Should teams be trained in lean?

Yes. A lean journey relies on a shared understanding of methods and objectives. Training enables teams to identify waste, adopt a common language and contribute actively to process improvement.

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