The process of creating, processing, authorizing, and tracking purchase requests within an organization is known as requisition management. The method of Requisition Management can also be defined as the process of obtaining or receiving, raw materials required for the manufacture of a product or the provision of a service. The Requisition Management cycle effectively manages cash flow, fosters goodwill with suppliers, and generates profits for manufacturers or service providers.
Disadvantages of Manual Requisition Management
It employs paper forms and spreadsheets as tools that are extremely adaptable and capable of performing even the most basic tasks. The management of purchase requests becomes difficult as the team grows, with multiple requisitions for which evaluation becomes overwhelming.
Manual procedures include the following:
- Inaccuracy
- Erroneous
- Expensive
- Time Consuming
- Fraud, and
- Risk Potential
- Lack of transparency
- Lack of consistency
- Need for more manpower
Strategic Partner in Requisition Management
The module on Requisition Management as facilitated by EffiGo can be a lifesaver for any business because it is simple to use and produces accurate results.
The digital process entails:
- Accuracy
- More affordable
- Cloud-based
- Consistent and transparent
- There are no frauds or risks
- Reduced Manpower
- Less time required
Requisition Management Features
The system will allow a company to integrate all purchase requests into a single cloud database, which can be monitored and controlled from anywhere, at any time. The transition to automated tools is simple and painless.
Request Initiation
Employees initiate purchase requisitions on their own or on behalf of others. Concurrently, procurement policies and catalog items are applied to these purchase requisitions.
Approval access: Purchase requisition form if correctly filled out by filling out all required fields. This is subject to budget approval; if it passes the budget check, it will proceed to the approval workflow, where it can be rejected or approved, or changes to the request will be made.
Request Initiation
Employees initiate purchase requisitions on their own or on behalf of others. Concurrently, procurement policies and catalog items are applied to these purchase requisitions.
Approval access: Purchase requisition form if correctly filled out by filling out all required fields. This is subject to budget approval; if it passes the budget check, it will proceed to the approval workflow, where it can be rejected or approved, or changes to the request will be made.
Create Purchase Orders
When a requisition line is completely approved, it must be automatically converted to a Purchase Order.
Controlled tool
The software follows a formal procedure from the generation of the request to its acceptance and purchase order, leaving no room for forgery. Furthermore, the document can be counter-checked at any time.
Centralized Purchasing System
With the proper channel work procedure, departmental delays and efficiency levels are reduced. This enables the company to make large purchases with significant bargaining power.
Business Protector
With all of the functionality of placing requisition orders, approval, and purchase orders, as well as effective fraud prevention, it greatly assists a business. If there is any uncertainty, you will have a requisition order as a proof document that will allow you to easily trace the assets.
Procurement Solution
The purchase requisition process is more efficient, quick, and consistent. The digital procurement process is simple to set up because it is cloud-based and uses multiple operators to handle massive amounts of data at once. A purchase requisition management system is critical for any organization.
This is a brief synopsis of all the features of Requisition Management. Deep dive into the other blogs on our website for further information about Requisition Management and a range of other services offered by EffiGO.
