How to Optimize Your Purchase Requisition Process
Whether you’re just starting up your own small business or you’re the head of a purchasing department in an established company, it makes sense to automate your purchase requisition process.
Today’s options for purchase requisition solutions are broader, more affordable and more accessible than ever before, making now the perfect time to bring your purchasing systems up to date. Faster processing times, cost savings and better control are just some of the benefits that you can enjoy with an automated purchase requisition solution.
What is a purchase requisition process?
A purchase requisition process is the flow of events that is triggered when a department needs to make a purchase. From the creation of the request to the delivery of the products, there are multiple tasks to be completed before the purchasing team can fulfill the request.
A system for purchase requisition makes it easy for businesses to generate PRs from virtually any location. All that is needed is an Internet-enabled device, such as a personal computer, smartphone or tablet.
Steps involved in a purchase requisition process
A purchase requisition process flow usually follows the same sequence of predictable tasks across organizations.
A typical purchase requisition process involves the following steps.
- Creation of requisition: The team with the requirement fills out a requisition form.
- Internal approvals: After approval from the supervisor and head of department, the requisition is routed to the purchasing department.
- Purchasing department review and approval: The purchasing team may approve or reject the request after review. In case it is rejected for lack of information, it is sent back to the requesting team for changes.
- Purchase order creation: Once the purchase requisition is approved, a purchase order is created with specifics such as quantities, types, and prices previously agreed upon.
- Supplier acceptance: The purchase order is sent to the supplier. Upon acceptance, the PO becomes a binding contract.
- Delivery and quality check: The supplier delivers the products on the specified date. The delivery is checked for quality and any returns required are processed.
- Matching: A three-way matching is conducted between invoice, PO, and purchase request to confirm accuracy.
- Closure: PO is considered closed once all documentation requirements are met.
The purchase requisition process described above is only a brief gist. In practice, there are multiple details that could go awry at any stage of the process leading to inefficiencies and losses.
Streamline Your Procurement Process With Kissflow
How an e-procurement solution streamlines your purchase requisition process
The simplest, most efficient way to manage the purchase requisition process is to invest in an e-procurement solution tailored to your organization’s unique needs.
E-procurement solutions benefit organizations in many ways. Some of them include
- Faster approvals
- Elimination of paperwork
- Minimal errors
- Cost savings
- Short procurement cycle time
- Greater employee productivity
- Better vendor performance management
- Transparency of operations
- Improved visibility into spending
Core functionality of an e-procurement solution
Being told that e-procurement systems can improve your purchase requisition process could seem less than credulous when it’s unclear how they work.
Simply put, e-procurement systems have modules that help manage various functions of procurement. These modules, in turn, comprise multiple workflows. Major functions of e-procurement systems include:
E-procurement software allows for easy creation of purchase requisitions and route them effortlessly through approval workflows minimizing delays and bottlenecks. Once the requisitions are approved, the software converts them to purchase orders automatically.
Companies can organize purchase orders meticulously with an e-procurement process. Multiple purchase orders can be tracked and managed in one central place. You can also factor in customized budgets, permissions, approval workflows, and policies.
e-Procurement systems can enhance vendor management by leaps and bounds. Centralized database helps captures all vendor information without replication. This becomes valuable for negotiations, managing performance, and ensuring quality.
Another function where disaster can potentially strike is invoicing. Procurement software helps match invoices with order receipts accurately. It also routes them through approval processes to financial software with minimal delays, making the invoicing process much more efficient.
For efficient procurement processes, organizations need smooth contract approval workflows and secure cloud-based storage. E-procurement software makes this possible with user-specific access and audit trails.
Streamline Your Procurement Process With Kissflow
Why choose Kissflow to manage your purchase requisition process
If your organization needs an effective way to manage purchase requisition processes, Kissflow is a compelling option. Featuring a highly intuitive design, it allows you to customize the interface to your company’s requirements with ease.
Kissflow procurement enables you to automate workflows effortlessly, boosting productivity and efficiency. The mobile app facilitates on-the-go approvals and delays become a thing of the past. Powerful visual reporting tools provide actionable and in-depth insights into process performance. Data security can be ensured with conditional access.
Kissflow comes ready to implement so that your improved purchase requisition process can hit the ground running. Take a look at Kissflow procurement today.