Time Travelers in the System: Uncovering the Hidden Flaw in Procurement

It all started as a mystery our state of the art cognitive AI agent couldn’t quite explain. As we analyzed millions of transactions from 75 different ERP systems across a multitude of companies, we noticed something odd—a huge set of Purchase Orders that simply didn’t fit the expected pattern. These weren’t the typical POs our AI and our researchers expected to see. Instead, they appeared only after the invoice had already been issued. It was as if these POs were time travelers, retroactively materializing to satisfy a mandate that was supposed to prevent precisely this kind of behavior.

For years, companies have invested heavily in procurement systems, with CFOs rigorously enforcing the mantra: “No PO, No Payment.” The logic is sound: by ensuring that every expenditure is pre-approved, organizations can maintain strict control over spend and reduce maverick purchases. Yet, our investigation revealed a startling truth—despite these investments and policies, many organizations continue to struggle with after-the-fact POs. Employees, frustrated by clunky, cumbersome systems, have learned to bypass the process. They simply have someone create a PO after the fact to get around the hurdles in the system.

So, why does this happen?

The answer is simple: people won’t use a system that doesn’t work for them. If the procurement process is too complicated, technical, time-consuming, or disconnected from everyday needs, workarounds are inevitable. If its too hard to get a request done, or only some requests can be handled through the process and some are not, people will look for and find ways to go around the process. The problem isn’t just about enforcing rules—it’s about creating a system that empowers every stakeholder to do their job efficiently and effectively.

This revelation is a wake-up call for the entire industry. What is truly needed is not just a set of rigid policies and a technical way to create a purchase order, but a holistic, intuitive procurement solution that meets the following essential requirements:

1. Empower Every Stakeholder: Every stake holder, from the ground floor to the executive suite, must be able to clearly and easily articulate what is needed and why. The system should make it very easy to describe what is needed, while naturally directing them based on history and company preferences. They need to know that once they did their part, these requests will be evaluated and handled professionally and efficiently all the way through.
2. Adaptable, Flexible, and Accountable Execution: The process must offer a clear, adaptable, and flexible path for executing every type request. This means accommodating various types of purchases and also internal service requests—whether routine or one-off—while ensuring accountability at every step. A streamlined execution path reduces the temptation to bypass the system and ensures that each request is handled efficiently.
3. Deep Integration with Accounting Systems: Finally, for a procurement system to truly add value, it must be deeply yet efortlessly integrated with the company’s financial processes and systems. This integration ensures that every transaction is automatically classified and reconciled, providing real-time insights into spend, compliance, and budget performance.

Our findings from millions of transactions across diverse systems highlight a critical point: even the best-intentioned policies fall short if the underlying processes are not user-friendly or covering only some of the needed outcomes. When the official pathway is riddled with friction, employees will always find ways to work around it, leading to inefficiencies and lost opportunities for cost savings.

The future of procurement lies in reimagining these systems to make compliance the natural, effortless choice. It’s time for organizations to adopt solutions that not only enforce control but also empower users—ensuring that every request is clear, budgeted, and seamlessly executed.