February 25th, 2019 • Procurement Process • Purchase Requisition
Requisition management is a balancing act. Procurement leaders must balance priorities like available budget and inventory optimization against concerns about risk mitigation and maverick spend.
However, balancing these priorities and concerns requires in-depth, actionable insights, and process transparency. This is precisely why procurement leaders take a greater interest in streamlining the requisition management process.
Before we dive deep into how it can be transformed, let’s take a closer look at the existing situation.
Requisition management is the process of creating, processing, authorizing, and tracking purchase requests within an organization. Once a valid need is identified, a formal request is initiated, typically using a purchase requisition form. The purchase request is then validated by the initiator’s manager and the procurement team to control spend and prevent potential frauds.
Archaic tools like paper forms and spreadsheets are flexible and up to the task when an organization’s purchasing needs are minimal. As teams expand, the process of managing multiple purchase requisitions and evaluating them gets out of hand. As a result, maverick spend and dark purchasing start to thrive.
A manual requisition management process is:
Moving away from paper-based purchase requisitions to requisition management software can be a lifesaver for any business. A good purchase requisition management system will allow businesses to consolidate all purchase requests into a single cloud database that can be accessed round the clock from anywhere.
While the transition from manual tools to automation may sound daunting, with the right tool it will be smooth. Here are three major functionalities that every requisition management software needs to have:
Employees should have access to initiate a purchase requisition to either for themselves or on behalf of other people. Procurement policies, catalog items, and spending authority should be applied to purchase requisition lines automatically.
Once all the fields in a purchase requisition form are filled correctly, it is subjected to standard budget approval. If it passes the standard budget check, it is routed through the approval workflow to appropriate reviewers. Stakeholders can either approve, reject, or request changes to the purchase requisition.
Overall approval status of the requisition depends on the status of individual requisition lines. Once a purchase requisition is completely approved, it needs to be automatically converted to purchase orders.
Requisition management software solutions make the process completely touchless. If done right, purchase requisition automation offers a number of benefits. Automated purchase requisition management software:
There are a number of requisition management systems available in the industry today. If the features listed below are not offered by a purchase requisition system, it is wise to cross it off your evaluation list.
Create automated workflows based on your business rules to ensure policy compliance.
Modify the purchase request form and data fields to capture the required information.
Request, route, and approve/reject purchase requests seamlessly with a cloud-based database.
Restrict confidential information based using role-based access and conditional workflows.
Help your stakeholders stay on track by sending them automated email notifications.
Enable seamless data exchange with your existing software solutions through API integration.
Procurement leaders cannot accomplish their strategic and business goals with an obscure procurement process. As a result, more and more organizations are automating purchase requests to improve the process end-to-end.
Best-in-class requisition management software enables organizations to accelerate the process, automate approval routing, integrate purchasing documents with back-end procurement system, and generate timely reports tailored to process.
Automated purchase request systems like KiSSFLOW integrate the requisition management process with other aspects of the procure-to-pay cycle effortlessly.
With an automated requisition management workflow, organizations can address pressing issues like long procure-to-pay cycle, low visibility, maverick spend, and a low overall ROI.
Take a look at KiSSFLOW to see what it’s like to have a fully automated system to manage your purchase requisitions.
* - Enterprise plans are calculated based on the expected volume of transaction and the maximum number of users