Why is Requisition Management Important for an Organization?

Requisition Management

Requisition Management involves creating, processing, authorizing, and tracking purchase requests within an organization. This process encompasses obtaining raw materials needed for manufacturing a product or providing a service. An efficient Requisition Management cycle effectively manages cash flow, builds goodwill with suppliers, and generates profits for manufacturers or service providers.

Manual Requisition Management: Disadvantages

Manual Requisition Management uses paper forms and spreadsheets. These tools are flexible and work well for minimal requirements. However, as the team expands, managing purchase requests becomes challenging, and multiple requisitions can become unmanageable.

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, often part of a broader procurement software system, can be a lifesaver for any business. 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

Requisition Management Software allows a business to integrate all purchase requests into a single cloud database, which can be monitored and controlled from anywhere, anytime. Transitioning to automated tools is smooth and easy in operation.

1. Request Initiation: Employees initiate purchase requisitions themselves or on behalf of someone else. Procurement policies and catalog items are applied simultaneously to these purchase requisitions.

2. Approval Access: Once the purchase requisition form is filled correctly, it undergoes a budget check. If it passes, it enters the approval workflow, where it can be approved, rejected, or modified.

3. Create POs: Approved requisition lines are automatically converted to Purchase Orders.

4. Controlled Tool: The software follows a formal procedure from request generation to acceptance and purchase order creation, leaving no room for forgery. Documents can be counter-checked at any time.

5. Centralized Purchasing System: A proper workflow reduces departmental delays and enhances efficiency, allowing for bulk purchases with better negotiation power.

6. Business Protector: By placing requisition orders, securing approvals, and generating purchase orders while preventing fraud, the software protects the business. Requisition orders serve as proof documents, facilitating asset tracing.

Procurement Solution

The purchase requisition process is more efficient, faster, and provides consistent results with digital procurement systems. These systems are easy to set up, cloud-based, and can handle massive data with multiple operators.

Key Points Highlighting the Need for Digital Purchases:

• 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

Cloud-based purchase requisition management reduces paperwork, manual involvement, and human errors while ensuring transparency and lowering operational costs.

Key Features Include:

• Verification of requisites with existing invoices and purchase orders before approval.
• Real-time report generation with zero blocking and delay.
• Centralized, cloud-based storage with seamless access for request approval.
• Secure purchasing information with user-specific permissions and conditional access.
• Automated notifications and reminders to stakeholders for timely actions.

Importance of Requisition Management Software

In any business, there will always be a need for suppliers or materials, whether office supplies, consumables, or equipment. Requisition Management Software helps place requests efficiently, saving money and facilitating effective negotiations. The software prevents fraud by maintaining internal control over the entire purchase requisition process, allowing access and monitoring of all orders and approvals at any time.

Purchase Requisition Form: This internal document, filled with required fields, ensures that the Procurement Department sends formal purchase requests rather than ordering directly from vendors. Approval is required at every stage, building a document trail for asset tracking.

Infizo Procure: Enhancing Requisition Management

Infizo Procure streamlines requisition management by simplifying the creation of requisitions for assets, inventory items, catalogs, and other materials. It efficiently handles Purchase Requisition, Purchase Order, and Goods Receive Note (GRN). As a cloud-based solution, it ensures quick and fast operations, maintaining complex details effortlessly. The software allows for easy viewing and tracking of Purchase Orders from creation to approval.

Conclusion

Requisition Management software provides comprehensive control over the entire purchase request to purchase order and GRN process. It is hassle-free, easy to access, and efficient, ensuring the smooth management and tracking of assets. With Infizo Procure, businesses get excellent value for their money through improved accuracy, efficiency, and streamlined operations.

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