Procurement timeline
Procurement cycle time business days
Procurement cycle time business days measures the workdays between requisition and PO or between PO and delivery once you exclude weekends and holidays. Use it to compare lead times across month end and quarter end without mixing calendar days into your metrics, so results stay practical.
Published: December 28, 2025 · Updated: December 28, 2025 · By FinToolSuite Editorial
Disclaimer
- Educational purposes only; not legal or financial advice.
- Examples are illustrative and simplified.
- Results depend on your inputs and assumptions and are not guaranteed.
- Preset holiday lists can be static and may not cover regional observances.
- Read the Privacy Policy; do not share supplier, invoice, or sensitive company details.
Quick answer: procurement cycle time business days
- Counts workdays between procurement steps after you exclude weekends and holidays.
- Use inclusion mode to decide if the start or delivery date counts.
- Month-end and quarter-end spans can shift when holidays sit on edge dates.
What “cycle time” means in procurement
Cycle time is the workday span between two events. In procurement, common pairs are requisition to PO, PO to shipment, and receipt to delivery confirmation. Counting workdays between dates keeps comparisons fair across periods with different weekend patterns or holiday loads.
Where business days matter
Approvals often happen on working days only. Suppliers may process orders on their workweek, and receiving bays may close on weekends or holidays. Using workdays between dates captures these pauses better than calendar days.
Worked examples
Example A: Requisition to PO
Start: 24 Apr (Wed). PO: 30 Apr (Tue). Weekend Sat–Sun.
Result: 5 business days.
Example B: PO to delivery over month end
Start: 29 Jun (Sun–Thu workweek). Delivery: 05 Jul.
Result: 4 business days with Fri–Sat weekend.
Example C: Quarter end with holiday
Start: 27 Mar. Delivery: 04 Apr. Holiday on 1 Apr excluded.
Result: 6 business days.
How to measure with the tool
- Select the start and end events (requisition, PO, delivery).
- Choose the weekend pattern that matches you or the supplier.
- Turn on holiday exclusion and add any supplier shutdowns.
- Pick inclusion mode to control edge days.
- Review the business day calculator result and share assumptions.
Try it now: business day calculator.
Common mistakes
- Mixing calendar days with workday KPIs.
- Ignoring supplier weekend patterns.
- Not excluding holidays on start or delivery dates.
- Switching inclusion mode mid-report without noting it.
- Skipping month-end or quarter-end holiday shifts.
FAQ
What is procurement cycle time in business days?
Workdays between steps like requisition and PO after excluding weekends and holidays.
Which steps should I measure?
Requisition to PO, PO to delivery, approval to goods received are common.
Do weekends and holidays always get excluded?
Only when you set them. Choose weekend pattern and holidays first.
How do inclusion modes change totals?
Include start/end can add up to two business days vs exclude both.
Can I model quarter-end rushes?
Yes. Set the date range over quarter end and apply the correct holidays.
Do I need supplier details?
No. Use dates and rules only; do not enter supplier or invoice data.
Is this guaranteed?
No. Results depend on your inputs and assumptions and are not guaranteed.
Is this legal or financial advice?
No. This is educational. Confirm with procurement and legal teams.
Measure cycle time now
Set weekends, holidays, and inclusion mode to get procurement cycle time in business days you can share.
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