Purchase Requisition Software: Is It Rightfor Your Business?

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

REQUISITIONSReceivingRequest for QuotationsInventoryPurchasingAccounts Payable Interface

Requisition Module

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

When evaluating all the features a superior Purchasing Requisition Software should includethe 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 theirreorder points.

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

• When integrated with Inventory module, requisitions for stock items are automaticallyrouted 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 allnecessary sign offs.

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

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

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

• Multiple requisitions for similar materials or services can be combined in one order, or asingle 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 ofrequisitioned items, including expected delivery dates, back-order conditions, and assignedbuyers.

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

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

Internet Impact

The impact of the Internet has opened the door for technology. Let’s consider theHospitality Industry as an example and think how this impacts your business as well. InHospitality 2010, Deloitte, states that technology will become more and more important inthe future. It states that technology is the fastest weapon the industry has for materialproduct 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 achievedbecause there are so many touch points. That is why a technological approach to solvingbusiness issues is needed.

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

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