Purchase requisition software is a software program that can initiate a purchase request for internal approval, then turn that requisition into a purchase order.
Not all purchasing software is created equal. The best systems are user-friendly, flexible to meet varying needs, able to automate approval workflows, and provide spend and budgeting reports.
Because the purchase requisition workflow is a part of the procurement process, requisition software is included in procure-to-pay software that includes the entire process from sourcing to accounts payable.
For most organizations, the primary benefit of requisition software is cost savings.
Getting employees to stop wasting time with manual purchasing processes and automating approval flows creates an average savings of 10% of annual spend, reduces 80% of time spent on data entry, and leads to a 30% faster financial close.
A Streamlined Process
Using paper forms and Excel sheets leads to delays and mistakes that automation can fix.
Switching to an automated process that prompts users for all the information they need and then automatically routes to the approver eliminates these issues and generates significant time and cost savings.
Procurement software systems can set up ‘ guided buying environments’ where employees can select from a pre-populated list of preferred suppliers with spending limits.
This ensures that they’re only sending requests to make purchases from the best vendors at the best prices and terms, leading to more savings and better spend management.
Fast Approval Process
One of the big problems with purchase requisitions is that they end up in a pile on someone’s desk or buried in their inbox.
With software, the appropriate approvers automatically get notified and reminded so employees don’t have to waste their time chasing people to approve their requests.
Integration with other Processes and Systems
Because requisitions are just part of the process, it’s important they are integrated into the greater whole. With software, they seamlessly become purchase orders after getting approved.
The software can also integrate with accounting systems so orders are automatically included in financial reports.
Budgeting and Spend Control
Using an integrated system makes it much easier to track requests against budgets.
When a request comes in, approvers can instantly weigh it against the remaining budget all in one system. They can also track what types of spend are going over budget and easily make adjustments.
All purchases start with a requisition and should be tracked accordingly. Purchasing software automatically logs all the data from key documents to an audit trail.
This information makes doing a financial audit much faster and easier, as it’s all instantly available.