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Purchase Order Processes

Author: Ruban Rajasooriyar

A purchase requisition is a document used by employees when they need to purchase or order something on behalf of their company.  It will be used to inform managers to get authorisation, then subsequently to inform finance, HR and / or IT, depending on what’s being requested.

A purchase order is issued by the purchasing or finance department, after the purchase requisition has been through the approval processes.  This document is then sent from a buyer to a supplier to request the order.

A normal order process looks something like this:

DocTech_purchase order process planner

This all relies on a document moving around the business. With a workflow tool designed for purchase processes, there is no need for a physical or digital ‘document’ until the process is completed. This saves valuable resource and allows better collaboration. For example, it might be that there are 10 possible approver's for a PO. DocTech’s solution can send a task to all 10, and then delete the task for the other approver's once the status is updated by a user with correct approval rights.

Is there enough control in your purchase requisition processes?

A key consideration is WHO can raise a Purchase Requisition and PO in your business? Is this controlled tightly enough? We have a client who came to us after a major overspend by someone who shouldn’t have been able to raise a PO. There was a lack of process and structure, which in turn allowed this to happen.

Purchase Requisitions and Purchase Orders are separate parts of the procurement process.  Your processes may include sending emails or printing documents off to be authorised by approvers in your process. This is actually a form of workflow – albeit a very manual workflow. We look to assist businesses in gaining tighter control and visibility of these processes whilst enhancing efficiency and speed.

Whether you are a supplier or purchaser, your company can benefit from making its procurement process more efficient and transparent.  Having business rules in place can reduce risk and bottlenecks. Without this, employees waste lots of time running after lost information or fixing mistakes caused by misplaced paperwork.

What visibility do you have?

Managers can have no visibility of how many documents there are, of what's waiting authorisation or if there’s a duplication. There is also no interaction with financial budgets. DocTech can apply technical solutions for escalations and substitutions that prevent documents being stuck or duplicated. We can implement easy to use, electronic purchase requisition and PO templates into your processes.

If your business is using old fashion purchasing processes, or has no, properly defined processes, you are wasting valuable resource. This resource should instead, be creating a positive client and employee experience. Nowadays, there are plenty of modern companies your clients could go to if you can’t give them the quality of service they know they can get elsewhere.

Automation of basic processes that simply eat away at your profit are an easy win. It allows staff to turn their attention to better more productive tasks. Get in touch to discuss what you would like to improve about your purchase requisition process.

Contact us now for more information 0161 647 7040