To some, a company’s purchasing process might look like shopping with someone else’s money. If you love shopping, employment in a procurement department sounds like fun. However, unlike the activity of leisurely browsing products and spending cash, the procedures that make up the purchasing process are meticulous. Procurement departments require a streamlined workflow called the purchase requisition workflow.See how we do it
It is the system of plans a company's purchasing department uses to purchase goods or services; detailing from a department requesting to order goods/services, to receiving of those goods/services from a supplier.
Purchase Requisition Workflows establish clear procurement processes and help detect as well as prevent company fraud through the use of a purchase requisition form. From company to company the purchase requisition process can differ, but it typically has the same main elements and revolves around a purchase requisition document.
Documentation is created for review.
Purchase requisitions are the documents employees use to notify their company that they need to order products or services on behalf of the business. These documents are the first step in the purchasing process, ultimately culminating into a purchase order if the procurement department has approved the purchase.
They outline details such as product description, quantity, name of the supplier, price, and name/department of the requester.
A requisition is reviewed by a department manager or purchasing officer.
Once completed, purchase requisitions are sent to the department manager or purchasing officer to inform them of the department requested items. The purchase request is reviewed to ensure that it is a valid inquiry, within the department budget, and listed to be purchased from an approved supplier. Most companies require more than one reviewer, especially if the cost of a product/service is considerably high. In the event that information is missing, incorrect, or inadequate the purchase requisition is denied and returned to the requester for corrections.
The approval process may require new documentation and a new submission timeline.
Purchase requisition approval can take time, ultimately causing a delay in getting goods/services ordered – possibly resulting in a work stoppage, program setbacks, and conceivably costing a company money.
When using manual purchase requisition workflows there is a high margin for human error and miscommunications as it passes through numerous hands. There is also a lack of transparency as the requisition progresses through the workflow.
If a problem or delay occurs companies can struggle to track down the location of the issue and diagnose the solution. Because it is vital for a business to keep the purchasing process moving, smart companies turn to technology to become more accurate, efficient, save time and money.
With purchase requisition software employees can create requests from any location using internet-enabled devices. Instead of filling out forms raw, staff can choose from pre-populated, customized templates and then submit just by clicking a button.
Electronic procurement systems can automatically determine which level of reviews are needed for various department requests, freeing up employees to continue their work. After a request is sent, staff has the ability to track their purchase requisition.
Staff is notified of their request approval in real-time; helping them create a purchase order for the supplier more quickly. A unique purchase order number tied to the requisition provides a clear audit of the purchase to the accounting department. The purchase order can be sent to the supplier immediately, with automatic electronic supplier acceptance as well.
The quick turn around in the purchasing process then results in faster delivery from the supplier.
Although the purchasing process may seem so simple and the purchase requisition seems like just a document, they are fundamental to the efficiency of a procurement department. If you would like to stop wasting time, resources, and money on paper-driven purchase requisition process, schedule a 30-minute demo of ProcurePort’s cloud-hosted e-procurement solution today.