5 things to Know About Automating Purchase Requisition Workflow

Businesses are losing money and experiencing subpar operations and compliance issues due to inefficient purchase requisition workflows. However, leaders are tackling all these issues with automation. 

We know that purchase requisitions serve as a critical initial step for acquiring goods and services. These documents are formal requests for approval to proceed with a purchase and typically contain crucial details such as the type of goods or services needed, quantity, price and the expected delivery date. 

While this might sound straightforward, a purchase requisition is more than just a shopping list. It sets the groundwork for effective procurement management, budget control, and compliance with company policies. Therefore, getting them right is essentially important. 

This blog will cover key issues leaders face with manual processing and the benefits automation can bring.

Issues With Traditional Purchase Requisition Workflow

Time-Consuming: 

Manual purchase requisition process comes with challenges— primarily due to its time-consuming approval procedures. Organizations often struggle to place orders on time. Tasks like validating requests must be repeated for every new submission. Chaotic workflows, data silos and poor inter-departmental communication further exacerbate these issues. All of which results in stalled projects and slowed business growth. 

Inefficient Processes: 

The reliance on paper documents increases costs for materials and printing. It also requires a larger workforce to manage these tasks. This can lead to maverick spending as employees may bypass mandated channels due to cumbersome approval processes. Paperwork can not only be error-prone but also get lost and managing physical files is time-consuming. Multiple handoffs in the approval process increase the chances of mistakes, which take time to fix. Compliance, unfortunately, suffers as procurement teams find it difficult to enforce strict policies—leading to inconsistent practices, duplicate requests and even fraud.

Lack of Visibility: 

Finally, visibility into the process is limited when you use spreadsheets. They also do not scale well with increasing purchase requests. Storing documentation as hard copies makes accessing critical information difficult. This creates confusion among stakeholders and hinders effective spend regulation. The inability to generate timely reports and analyze data further complicates efficient procurement management.

The way out is automating these processes using purchase requisition software. 

5 Top Benefits of Automating Purchase Requisition Workflow 

1. Accelerates the Approval Process: 

With purchase requisition software, creating and routing requests through the approval process becomes seamless. You can configure custom approval workflows—setting different approval levels based on department needs. When an employee submits a purchase request, approvers are instantly notified via email or in-app alerts. This allows them to approve or reject requests in few clicks. 

Employees can also track the status of their requests—keeping them informed throughout the process. After request approval, the software automatically converts it into a PO (purchase order). This automation accelerates order placement and reduces turnaround time by eliminating delays and other roadblocks. It also frees employees from repetitive tasks, allowing them to focus on more critical responsibilities. 

2. Helps with Cost Savings: 

Automating purchase requisition workflow speeds up the entire process—from request creation to purchase completion. This cuts organizational overheads while minimizing errors or redundancies. Since every request is routed through proper approvals—procurement managers can assess whether each expense is necessary. By automating the purchase requisition process, you'll gain a consolidated view of spending—helping reduce costs and spot purchasing cycle gaps. 

3. Boosts Overall Productivity: 

With purchase requisition software, employees can quickly create requests from anywhere using pre-populated data. This includes item catalogs, approved suppliers and payment terms. This saves time and reduces errors. Once the complexities of manual processes are eliminated, staff no longer need to deal with lost paperwork or data silos. They can now easily access real-time updates throughout the entire purchase requisition cycle. 

4. Enhanced Compliance and Control: 

Purchase requisition workflow automation offers the flexibility to either allow or restrict specific actions according to the company’s policies. Simply configure the software to align with those policies. You can set custom spending limits to prevent maverick spending and import online catalogs to ensure items are purchased from authorized vendors at contracted prices. If any policy violations occur, both the requesting employee and their line manager are automatically notified. By controlling these key elements of your purchasing process—you can maintain consistency and minimize fraud. 

5. Enhances Spend Visibility: 

Automating your purchase requisition system provides your organization with granular visibility. You have insights on requests, approvals, key documents and internal communications. You can generate real-time, insightful analytical reports and customize them. This gives a more precise understanding of your business expenditures. By centralizing this information—all stakeholders gain access to accurate data on past requisitions, purchases and orders. This deeper insight allows for better tracking of cost trends, faster, data-driven decision-making, improved budget planning and stronger negotiation leverage with suppliers. 

Also Read: Driving Procurement Agility With Purchase Requisition System

To Sum Up 

Automating the purchase requisition workflow enhances efficiency and compliance. This is done by streamlining approval processes, reducing delays and errors and cutting costs. It also improves visibility into spending, enabling better decision-making and budget management. Ultimately, a purchase requisition software drives smoother operations and boosts productivity for long-term growth. 

Explore how GEP can help.