Home
>
Blog
>

Why is Requisition Management Important for an Organization?

Why is Requisition Management Important for an Organization?

Requisition Management is the process that involves creating, processing, authorizing, and tracking purchase requests within an organization.

The method of 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 cash flow, builds goodwill with suppliers, and generates profits for 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 expansion of the team, managing purchase requests becomes difficult with multiple requisitions for which evaluation gets out of hand.

The Manual process includes:
- Inaccuracy
- Erroneous
- Expensive
- Time Consuming
- Potential for Frauds and Risks
- No Transparency; No Consistency
- Complex
- More Manpower Required

Requisition Management: Strategic Partner

Requisition Management Software can be a lifesaver for any business as it is easier to handle and consistently provides accurate work.

The Digital process includes:
- Accuracy
- Less Expensive
- Cloud-based
- Transparent and Consistent
- No Frauds and Risks
- Less Manpower
- Less Time Consuming

Functionalities of Requisition Management Software

The system will allow a business to integrate all purchase requests into a single cloud database, which can be monitored and controlled from anywhere, anytime. Shifting to automated tools is smooth and easy in operation.

  • 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 subject 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 counter checked 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 a requisition order as a proof document through which it becomes easy to trace the assets.

Procurement Solution


The purchase requisition process is more efficient, has speed, and provides consistent results. The digital procurement process is easy to set up as they are cloud-based with multiple operators to handle massive data at once. It is very important for an organization to have a purchase requisition management system. The following points make it easy to understand why Digital purchases are necessary:
- Enhanced efficiency
- No Lost or Delayed Requests
- Improved purchase requests
- Accelerated approvals for requests
- Improved 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 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 individuals related to seeking timely actions from stakeholders.

Importance of Requisition Management Software

In any business organization, there will always be a need for 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. Businesses always get value for their 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 gives 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, and it is mandatory to be filled with all the required fields. The Procurement Department doesn't order directly from a vendor but has to send formal purchase requests 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 internal control over the entire 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 Infizo Procure


Our application, its use can easily create a requisition for assets, inventory items, catalogs, and other materials 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 that makes it quick and fast in its working and accessibility. It is an easy way to maintain 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 being created or getting approved.

EndNote

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.

Related Posts