| A purchase requisition is a process of requesting and | | | | - It has to consider the planning of future purchases |
| authorizing procurement of goods and services by a | | | | - Clear visibility of the financial impact of a purchase |
| department in the organization. It contains a description | | | | - Scalable to accommodate a growing organization |
| and quantity of the goods or services to be | | | | |
| purchased, a required delivery date, account number | | | | A solution is needed to absorb the complexity of a |
| and the amount of money that the purchasing | | | | sophisticated purchasing solution and present it in a |
| department is authorized to spend for the goods or | | | | simple and contextual manner and ensure compliance |
| services. | | | | with organizational sourcing and authorization policies. |
| As part of an organization's internal financial controls, | | | | The system should be able to get real time data and |
| the accounting department is accountable for a | | | | bring all stakeholders on the same platform for |
| purchase requisition process to manage request for | | | | effective collaboration. |
| purchase of goods and services. These requests are | | | | |
| documented and routed for approval within the | | | | The benefits of automating a purchase requisition |
| organization and then delivered to the accounting | | | | process |
| group. | | | | Organizations' can automate purchase requisition |
| The challenges faced by an organization in | | | | processes to drastically reduce administrative costs |
| implementing a purchase requisition process | | | | and better manage vendor payouts. If the requisition |
| Organizations' may incorporate a purchase requisition | | | | process is built on a business process management |
| process to help manage requests for purchases but in | | | | platform, organizations can easily integrate their ERP |
| order to control expenses and be in line with the rigid | | | | and other core business systems with automated |
| accounting policies of the state, The process needs to | | | | purchase requisition processes. As a result, |
| be adopted across the whole organization. However, | | | | organizations can shorten approval cycles, reduce |
| occasional requesters of goods and services have | | | | administrative overheads, and effectively control and |
| little awareness of how to source their needs, or what | | | | expedite the requests while being compliant. |
| corporate policies are in place, budgets or spend | | | | |
| limitations, understanding of process or accounting | | | | - Increase resource efficiency and productivity by |
| requirements. Additionally, any attempts to enforce | | | | streamlining purchase process |
| rigid purchase requisition processes or rules inevitably | | | | - Scalable system to accommodate unnatural growth |
| results in those procedures being circumvented, but | | | | - Eliminate manual handling and minimize processing |
| adhoc expenses without proper documentation still | | | | errors |
| remains a cultural problem in the organization. | | | | - Approval cycles are shortened by real time alerts to |
| | | | | stakeholders, build KPI's and SLA levels |
| In addition, a manual paper-based process is laborious | | | | - Monitor and make changes to the process to |
| as the requests are manually typed, rekeyed, logged, | | | | optimize it to the best levels |
| validated, routed, and stored. It results in inefficient and | | | | - Be compliant with all corporate and governmental |
| error prone processing that burdens users and | | | | policies |
| administrators. The data is scattered across all | | | | - Eliminate human intervention and increase accuracy |
| systems and locating relevant information, causes a | | | | of data |
| user to waste time, resulting in slow requisition cycles. | | | | - Integrate with existing and legacy applications |
| Manual notification, tracking, and reporting contribute to | | | | - Provide contextual actionable alerts to ensure |
| inefficiency and prevent effective control of the | | | | streamlined process |
| procurement cycle. | | | | - Reduce administrative and delivery costs. |
| | | | | - Ensure document accuracy, security, and reliability |
| For a purchase requisition process to be truly | | | | - Permission based access to users |
| encompassing, it should have the following | | | | The solution built on a good BPM product will minimize |
| characteristics: | | | | administration costs with total process automation. By |
| - A single, unified requisition process for all types of | | | | bringing the stakeholders on the same platform and |
| spend | | | | making the process visible to everyone, the approval |
| - Bring people and systems on the same platform to | | | | times are considerably shortened. The BPM solution |
| collaborate effectively | | | | will effectively enforce purchasing policies to reduce |
| - Accountable for all types of supply sources and | | | | the cost of goods and services. |
| processes | | | | The solution should not only provide for fulfilling current |
| - The purchasing requisition process has to be | | | | requirements but also be sympathetic in its approach |
| integrated with sourcing | | | | to changes in policies, document types, users and |
| - Simple in use and contextual | | | | connecting systems and be approachable in adopting |
| - Provides visibility to users to incorporate buying | | | | several current standards. |
| policies | | | | |