by Helium01

Created on: April 07, 2011

The purchase requisition process is the formal process of requesting to buy parts through their purchase and receipt by the end user. Purchase requests typically go from a requester to a purchasing department or a formal buyer. Below is a summary of the typical steps in a purchase requisition process for a business.

1. First, a purchase requisition is created by the staffer requesting the item.

2. The requisition is sent to a buyer. The buyer checks queue for existing stock to meet need and determine why a new order is needed. They also check for existing orders for the material. This is done to prevent unnecessary purchases.

3. If existing stock exists, it is sent to the requester.

4. If it is already on order and the new order does not meet the needs of the original requester and the new requester, a new order may be placed or the original order quantity may be increased to accommodate both requesters. The buyer evaluates the requisition to determine if a new purchase order is needed.

5. The buyer reviews procurement history for suppliers that meet the requirements in the Purchase Request. If a part has been purchased before, successfully, then they order it from an existing vendor.

6. If the part has not been purchased before or the prior suppliers have not met part requirements or schedule, the buyer researches a new set of suppliers.

7. If the part order is to be placed with an existing supplier, they will seek price quotes from all pre-approved suppliers. If the part order will be placed with suppliers outside the usual supply chain, they will seek price quotes from all likely qualified suppliers.

8. The quotes will be evaluated on price, lead time, and quality specifications. If the scope is large, complex, or multi-phase, the buyer will have a statement of work drawn up in addition to the purchase order.

9. The best vendor will receive the purchase order.

10. Buyers will also obtain drawings, supply proprietary information agreements, and all necessary legal forms for the purchase order.

11. After the purchase order is placed, the buyer gets updates on the status of the order. These updates may be shared with the person who originally requested the parts. The buyer will receive shipping notices, assist with invoicing payments, handle rejections, failures, and returned parts. They will handle forms for receiving and stocking of ordered parts. Buyers will validate any replacement parts for the assembly or substitutions made by the vendor.

12. If the transaction goes well, the buyer will add the supplier to the accepted supplier database.

13. If the transaction goes badly, the buyer will ban that supplier from ever being considered by the business again.

14. After the buyer has validated the order, it is sent to the stock room or on to the person who originally requested it.

This is what happens in the days or weeks between when the purchase request is placed and the item finally arrives. This is just a quick overview of the purchase requisition process in a business. Although the process may vary between businesses, in most cases each of these steps will be followed.

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