Purchase Requisition Software: Is IT Right for Your Business?

Managers will appreciate the improved management of inventory, the ability to find the best pricing, the timely delivery of orders and ease of tracking orders. A fully integrated system can cut cycle time in half and save 20% – 50% in administrative costs. Your purchasing software should be Sarbanes-Oxley compliant so Financial Managers can feel assured that complete, detailed audit reports are available to them in real time with just a keystroke. Additionally, the system you select should be a modular system, meaning you can buy what modules you need now and add more as your needs change. It should be able to function as a stand-alone system or it can be integrated with an accounting package to become one large seamless system. A complete system should include the following modules:

The Requisitions Module (Purchase requisitions) is the first module in the series, and it is the beginning of the purchasing process, providing the basic infrastructure for the cycle of ordering goods and services. While many more modules comprise the complete the series, it is readily apparent how implementation of just the Requisitions Module can help maintain brand consistency while improving the purchasing process.

When evaluating all the features a superior Purchasing Requisition Software should include the following:

• Individual user departments can requisition items directly from on-line catalogs or in free-form mode.

• Requisitions can be imported directly from Inventory module for items at or below their reorder points.

• Purchase requisitions can be printed, or handled without paper.

• When integrated with Inventory module, requisitions for stock items are automatically routed to your warehouse.

o Stock availability and subsequent stock commitment is performed real-time.

o If warehoused items are unavailable when requisitioned, the outstanding

portion will be automatically filled when re-supply occurs.

o Disbursement reports identify which items to pull from stock, their stocking

locations, and delivery information.

• A multi-level, on-line approval process prevents items from being ordered prior to all necessary sign offs.

o Requisitions are automatically routed by e-mail to the next approver listed in

your business rules.

o If rejected, requisitions can be returned to the original requisitioner with a

rejection reason.

• Users can review requisitions on-line and convert them into purchase orders or requests for quotations without re-keying any data.

• Multiple requisitions for similar materials or services can be combined in one order, or a single requisition can be split up into multiple purchase orders for a number of vendors.

• On-line status inquiry and printed status reports make it easy to track the progress of requisitioned items, including expected delivery dates, back-order conditions, and assigned buyers.

• Shows which requisitions are on hold waiting for approval, approved but not ordered, and ordered but not received.

The Requisitions module is just one part of a complete system that supports vendor management, inventory, budgets, contract compliance, receiving, RFQs and other essential procurement processes.

The impact of the Internet has opened the door for technology. Let’s consider the Hospitality Industry as an example and think how this impacts your business as well. In Hospitality 2010, Deloitte, states that technology will become more and more important in the future. It states that technology is the fastest weapon the industry has for material product differentiation and that tomorrow’s traveler will be far more influenced by brand. Additionally, Deloitte states that consistency in brand is paramount but not easily achieved because there are so many touch points. That is why a technological approach to solving business issues is needed.

Consistency remains the single most important factor in brand delivery. All successful organizations must ensure everyone in the value chain delivers the brand promise, and the Purchasing Department, especially, can help make it easier for your business to live up to its promises.