Industrial Procurement · Procurement problem

Why industrial procurement runs late

Most lost time is upstream of the purchase order.

Buyer-side guidance·Supplier-neutral·Free for buyers
Quick Answer
Equipment lead times are usually predictable. What slips is everything before the order: an undefined scope, RFQs issued one at a time, open clarification loops, an approval chain that was never mapped, and financing started after supplier selection. Fixing the front end recovers more weeks than pressing suppliers ever will.

The five recurring causes

  • Scope still moving while quotations are being requested, so every change resets the pricing.
  • Sequential rather than parallel RFQs across packages on the same project.
  • Clarification loops with no deadline, where each round costs one to two weeks.
  • Approval chain discovered late — board, lender or authority sign-off that was never on the schedule.
  • Financing started after supplier selection instead of alongside the RFQ.

A schedule that reflects reality

Work backwards from the required production date through commissioning, installation, site readiness, shipping and manufacturing lead time to the latest possible order date. That date, not the wish date, determines when the RFQ must be issued.

Add a contingency for the items that are genuinely outside supplier control: shipping availability, customs clearance and, on many projects, permits.

Front-load the decisions

Fix the specification, name the internal decision-makers, agree the evaluation criteria before the offers arrive, and set a clarification cut-off date in the RFQ itself. These four steps cost nothing and remove most of the avoidable delay.

Frequently asked

How long does an industrial RFQ cycle usually take?+

From a defined specification, four to eight weeks to a comparable set of offers is realistic for engineered equipment. Manufacturing and shipping then follow their own lead times, which vary widely by equipment type and origin.

Can the RFQ be issued before financing is confirmed?+

Yes, and it usually should be. Most financiers require a firm quotation before a serious assessment, so the RFQ and the financing preparation belong in parallel.

Continue with our commercial resources

Hand-picked next steps for this topic — special purpose machinery and industrial project financing.

Home