Requisition Management is the process that involves creating, processing, authorizing and tracking of purchase requests within an organization.
The method Requisition Management can also be described as the process of obtaining, raw materials needed for manufacturing a product or providing a service or receiving the same.
The Requisition Management cycle efficiently manages the cash flow and builds goodwill with the suppliers and make profits for the manufacturers or service providers.
Manual Requisition Management: Disadvantages
It uses paper forms and spreadsheets as tools which are very flexible and work up to the task, even when the requirement is minimal. With the expanding of the team, the management of purchase request gets difficult with multiple requisitions for which evaluation gets out of hand.
The Manual process includes:
- Time Consuming
- Potential of Frauds and Risks
- No Transparency; No Consistency
- More Man Power required
Requisition Management: Strategic Partner
Requisition Management Software can be a lifesaver for any business as it is easier to handle and is consistent with accurate work.
The Digital process includes:
- Less Expensive
- Transparent and Consistent
- No Frauds and Risks
- Less Man Power
- Less Time Consuming
Functionalities of Requisition Management Software:
The system will allow a business to integrate all purchase request to a single cloud database, that can be monitored and controlled from everywhere, anytime. Shifting to automated tools is smooth and easy in working.
- Request Initiation: Purchase requisition is initiated by the employees either by themselves or on behalf of anyone. To these purchase requisition, procurement policies, catalog items are applied simultaneously.
- Approval access: Purchase requisition form if filled correctly by filling all the required fields. This is subjected to certain budget approval, if it gets passed through the budget check, it will go to the approval workflow where it can be rejected or approved, or changes will be made to the request.
- Create POs: Wherever the requisition line gets approved completely, it is needed to be automatically converted to the Purchase Order.
- Controlled tool: The software follows a formal procedure from the generation of request to its acceptance till purchase order, there being no space left for any kind of forgery. Moreover, the document can be counterchecked at any point in time.
- Centralized Purchasing System: With the proper channel work procedure there come fewer chances of departmental delays and efficiency levels. This allows the business to make bulk purchases with great negotiation power.
- Business Protector: With all the functionality of placing requisition orders, its approval and purchase order with effective prevention of frauds, it helps a business a lot. For the follow up at any point of uncertainty if occurs you will have requisition order as a proof document through which it becomes easy to trace the assets.
The purchase requisition process is more efficient, have speed and give consistent results. The digital procurement process is easy to set up as they are cloud-based with multiple operators to handle the massive data at once. It is very important for an organization to have a purchase requisition management system.
Following are the points through which it will be easy to understand why Digital purchase.
The requisition can be necessary:
- Enhanced efficiency
- No Lost or Delayed Request
- Improved purchase request
- Accelerated approvals for requests
- Improve vendor-buyer relationship
- No Fraud
Features of Requisition Management Software:
We have moved to cloud-based purchase requisition management omitting most of the paperwork, reducing the manual involvement and human errors as well by ensuring transparency and reduced operational costs throughout the cycle.
The software improves accuracy, execution and process efficiency.
The key features involve:
- The requisite is verified with the related existing invoices and purchase orders before it gets approved.
- Reports are generated with zero blocking and delay, therefore have a real-time vision.
- Cloud-based storage is centralized with its effortless and seamless storage and access for the approval of requests.
- Purchasing information can be maintained and kept secure by allowing permissions that are user-specific with conditional access and control.
- Automated notifications and reminders are sent to the individual related to seek timely actions from the stakeholders.
Importance of Requisition Management Software:
- In any business organization, it will always be need of suppliers or materials and equipment whether it be anything from office supplies, consumables to machines or other equipment. The software helps you to put the request accordingly and efficiently.
- Business always gets value for its money. Money is saved here by using the software as it gives you space to put orders and approvals for the same for an effective outcome and give you space to negotiate.
- From Department Managers to Purchase Orders to Suppliers, chances of fraud are prevented at a top-notch level. Therefore, the Procurement Department places an order to the vendor by overlooking the requisition workflow thoroughly.
- There is a Purchase Requisition Form which is an Internal document within the process, which is mandatory to be filled with all the required fields.
- Procurement Department doesn’t order directly from a vendor rather have to send formal purchase request from the individual department.
- Wherever the supply is used or required, approval from the process is needed. Through this, an internal document builds for further use for asset tracking.
- The company gets an internal control over all the purchase requisition process, so you can access or monitor all the orders and their approvals at any point in time.
Experience Requisition Management at another level with Asset Infinity:
- Our Application, its use can easily create a requisition for assets, inventory items, catalogs and other material with Purchase Requisition, Purchase Order and Goods Receive Note (GRN).
- It is very simplified and manageable software when it comes to use and productivity.
- It is a cloud-based software which makes it quick and fast on its working and accessibility. It is an easy way to maintain the complex details.
- It makes Purchase Orders from purchase history and easily gets stored under one platform.
- You can also view and track the records of the Purchase Order getting created or getting approved.
Requisition Management as the software gives you full access to the procedure from all ends (purchase request to purchase order and GRN). It is hassle-free, easy to access and efficient at its workflow. It gives you ground for easy management and tracking of all the existing as well as upcoming assets. It will make your business get value for its money.