Any business organization will always require suppliers of materials and equipment, whether for office supplies, consumables, machines, or other equipment. The software guides you through the process of making an appropriate and efficient request.
The money spent by a company is always well spent. Using the software saves money because it allows you to enter orders and approvals for an efficient outcome while also allowing you to negotiate.
The process of creating, processing, authorizing, and tracking purchase requests within an organization is known as requisition management. When a valid need is identified, a formal request is made, typically through the use of a purchase requisition form. To control spending and prevent potential fraud, the purchase request is validated by the initiator’s manager and the procurement team.
The process of creating, processing, authorizing, and tracking purchase requests within an organization is known as requisition management. When a valid need is identified, a formal request is made, typically through the use of a purchase requisition form. To control spending and prevent potential fraud, the purchase request is validated by the initiator’s manager and the procurement team.
Misbenefits of manual Requisition Management
When an organization’s purchasing needs are minimal, archaic tools like paper forms and spreadsheets are flexible and up to the task. As teams grow in size, the process of managing and evaluating multiple purchase requisitions becomes overwhelming. As a result, maverick spending and dark purchasing flourish.
A manual requisition management process is as follows:
- Incorrect and incorrect
- Time-consuming and costly
- Neither clear nor consistent
- Susceptible to potential frauds and risks
- Complex and time-consuming
Requisition management as a strategic partner
Changing from paper-based purchase requisitions to requisition management software can be a game changer for any company. A good purchase requisition system will enable businesses to consolidate all purchase requests into a single cloud database that can be accessed from anywhere around the clock. While the transition from manual to automated tools may appear daunting, it will be painless with the right purchase requisition tool. Here are three major features that all requisition management software must have:
Initiation of purchase requests
Employees should be able to initiate a purchase requisition for themselves or on behalf of others. Procurement policies, catalog items, and spending authority should be automatically applied to purchase requisition lines.
The Approval Procedure
When all of the fields on a purchase requisition form are correctly filled out, it is submitted for standard budget approval. If it passes the standard budget check, it is routed to the appropriate reviewers via the approval workflow. The purchase requisition can be approved, rejected, or changed by stakeholders.
Trigger for the creation of POs
The approval status of the requisition as a whole is determined by the status of individual requisition lines. Once a purchase requisition has been fully approved, it must be converted to purchase orders automatically.
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