Purchase Requisition

TermiKnowledge - Supply Chain, Procurement and Inventory Terminologies
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A purchase order form is a document filed by an individual to request the purchase of products or services for a company. These purchases can be for inventory, production, or for company services. The documents are used to track the inventory levels and overall costs of business supply. This information is important in order to determine if there is enough product or service to meet current customer demand and to forecast future demand. By analyzing inventory levels and costs, companies are better able to plan their inventory needs and sales.

There are several types of Purchase Requisitions that will be filed by employees. The main types are for inventory, manufacturing, and distribution. Each type has different requisition purposes and different time periods to complete them. This is information needed to support company and departmental budgeting and cash flow analysis for both long-term and short-term supply chain management needs.

Supply chain management involves the automation of multiple business processes in order to improve efficiency and minimize financial risk. This includes everything from materials management to logistics and delivery. To help software programs effectively monitor inventory, manufacturing, and distribution, purchase requisition lines should be used in the software. Doing so will ensure a higher level of success for the program.

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