Purchasing orders are one of the most critical functions of any organization. Many business processes make use of purchase orders to facilitate day-to-day operations and allow organizations to achieve their overall production goals. Procurement can either be a direct, or indirect, service provider. When the supply chain is properly managed, organizations can expect to experience: fast delivery, better availability of needed inventory, and timely completion of production requirements. When procurement is poor, it can lead to: increased inventory costs, delayed delivery, and inaccurate or delayed delivery of goods. Therefore, it is important for companies to manage and monitor their purchases in a manner that is effective in accomplishing goals, but also cost-effective.
When an organization buys a product from a vendor, it passes through several phases before the final delivery takes place. At the beginning, the decision is made whether to buy the product from the vendor directly, or to create a purchasing order (PO) with a third party, usually a vendor master supplier. A purchase requisition is a formal request for goods from a vendor. It is prepared based on specifications, quotes, and other data that an organization requires. The document is then submitted to the vendor for review and approval, and then either approved or disapproved. The final step involves delivery and shipment of the product to the ultimate destination.
Purchasing Requisition Services help to streamline many business processes and significantly improve overall efficiency. Requisition services allow a company to easily and quickly obtain all necessary data and goods to meet its specific needs. They work by automating purchasing functions and services, resulting in one department saving thousands of dollars per year. Furthermore, by using a Purchasing Requisition Service, one department will only have to maintain a single accounting file, instead of maintaining several separate accounting documents, and one vendor will only have to maintain a single inventory file, instead of multiple inventory accounts.