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.
The purchase requisition process can be upgraded for more efficiency, speed, and consistent results using an eProcurement solution like Kissflow Procurement Cloud.
Digital procurement systems are usually easy to set up as they are cloud-based, and can untangle a chaotic purchase requisition system within a few hours. Here are six reasons why every organization needs a purchase requisition management system. Digital purchase request systems can:
In addition to eliminating paperwork, reducing manual intervention and human errors, ensuring transparency, and lowering operational costs throughout the procure-to-pay cycle, a cloud-based procurement solution improves accuracy, speeds up execution, and enhances process efficiency within the purchase requisition process.
These are some of the most important features you should be looking for.
Automatically match purchase requisitions with related invoices and purchase orders before an invoice is approved.
Spot bottlenecked requisitions and delays using actionable insights from visual-rich reports.
Store, access, and approve requests seamlessly with centralized storage.
Maintain purchasing information securely with user-specific, conditional access controls.
Seek timely actions from the stakeholders by sending automated reminders.
Procurement leaders cannot accomplish their strategic and business goals with an obscure procurement process. A digital eProcurement can step in and transform key purchasing processes like purchase requisition management.
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 the requisition management process.
Kissflow is an end-to-end procurement system that covers the entire procure-to-pay cycle. It extracts purchase order details easily from approved purchase requisitions and sends these to the approval loop without any human intervention. You can integrate this procurement software effortlessly with any other finance or ERP tools you may be using.
Try an in-depth Kissflow demo today and see how easy it is to digitize purchase requisition management without transforming your entire IT setup.