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The Purchase Request process might sound as simple as buying weekly groceries at the supermarket. However, recall the mistakes we often make while shopping buying items we don’t actually need, or leaving the store with a much lighter wallet than expected.

Purchasing on a larger scale is no different. Moreover, the stakes are significantly higher. Many businesses end up with excess stock that brings more loss than benefit. Therefore, having a structured Purchase Request process is not just helpful it is essential for financial control and operational efficiency.

What Is a Purchase Request?

Simply put, a Purchase Request (PR) also known as a Purchase Requisition is an internal document that details the goods or services required by a company. Because it is internal, this document must obtain approval from the relevant parties before the procurement team sends a Purchase Order (PO) to a vendor.

In other words, a PR acts as the first checkpoint in your procurement workflow. It ensures that every purchase is justified, budgeted, and properly authorised before any money is spent.

Is a Purchase Request Really Necessary?

The answer depends on the size and complexity of your organisation. A small company might still operate without a formal Purchase Request process. However, for a large company with hundreds of employees, a PR process is extremely valuable. It helps track the origin of every purchase request without needing to “play detective” across multiple departments.

Furthermore, as a company grows, the volume of purchases increases rapidly. Without a structured PR process, spending can quickly spiral out of control. Consequently, implementing a clear PR workflow early saves significant time, money, and effort in the long run.

7 Steps in the Purchase Request Process

The workflow for the PR (Purchase Request) process can be simple or complex, depending on the company’s needs. However, certainly no one wants a long and complicated process that takes weeks just to get approval from the procurement team. Therefore, the PR process must be flexible and adaptable. Even though it might add one approval step, the benefits it provides far outweigh the drawbacks.

The general workflow is as follows:

1. Filling out the PR form The process begins when the company has a need for a purchase. This can range from office supplies to pantry necessities, which are then documented in a PR form.
2. Internal Approval The completed PR form is submitted to the relevant department head for review and approval.
3. Purchasing and Finance Team Approval The procurement and finance teams will review the document once the department head approves it. They can approve or reject it based on urgency and budget availability.
4. Request for Quotation The purchasing team contacts several vendors to request price quotations for comparison, considering cost, reliability, and delivery time.
5. Creation of Purchase Order (PO) The purchasing team issues and sends a PO to the vendor after selecting a quotation. This PO serves as the official contract between the buyer and the vendor.
6. Goods Receipt The goods are received and checked for conformity in both quantity and quality. If any goods are non-conforming, a return process is initiated at this stage.
7. Three-Way Matching To ensure accuracy, a match is performed between the Purchase Requisition, the Purchase Order, and the Invoice from the vendor.

Common Challenges in the Purchase Request Process

As evident from the steps above, the PR process involves many documents and transfers between multiple parties. As a result, it is susceptible to several common challenges:

• Documents can be damaged, misplaced, or lost during manual handoffs.
• Approval delays occur when key decision-makers are unavailable.
• Lack of visibility into spending makes budget control difficult.
• Human errors in data entry lead to mismatches during three-way matching.

These challenges become more pronounced as a company scales. Consequently, businesses need a smarter solution to manage the Purchase Request process efficiently.

Conclusion

Implementing an efficient Purchase Requisition process is key to optimizing your procurement workflow. The next step is to simplify your Purchase Order process. Our guide on “7 Essential Things You Need to Know about Purchase Orders” can help you increase accuracy, save time, and ensure smooth communication across all departments.

Meet ADAM: Automated E-Procurement Solution

ADAM is a provider of integrated e-procurement solutions that helps to automate the entire Purchase Requisition (PR) process from start to finish. Automation is the ideal solution to streamline your PR workflow: reducing human error, increasing spending transparency, and accelerating productivity!

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