In most technologically saturated markets, there are going to be constant developments. This is certainly the case in the context of procurement. Because the procurement department is so large and comprehensive in it’s functionality, departments often make use of a multitude of softwares. Making use of multiple softwares comes with it’s fair share of pros and cons. However, there are so many aspects to the umbrella of procurement, from the purchase order requisition to the inventory tracking, and reverse auctions, procurement is a massive department.
Therefore it makes sense that procurement professionals would split up the various aspects and functions involved in procurement to better disperse the workload and ensure that all of the functions are met with a high quality of standard. The procure to pay process, for example combines a series of functions related to the utilization of departmental budgets, through procurement tracking.
One of the most vital functions in the procurement cycle is undoubtedly the purchase requisition.
Understanding the Purchase Requisition
The purchase requisition is often the first step in a company’s procurement cycle. The purchase requisition serves as the ‘first domino’ more or less. In other words, it starts the chain of events that eventually lead to actual procurement action, aka inventory acquisition.
Strong purchase requisition processes follow best practices that guide and shape the purchase requisition process to be efficient and accurately recorded. This is important to note because keeping record of the purchase requisition history is absolutely crucial.
There is a significant distinction between the purchase requisition and the purchase order. While the purchase order is the actual request for goods or services from a vendor or supplier, the purchase requisition is an earlier step in that process.
The purchase requisition is an internal document that departments or employees utilize to inform the keepers of the budget of an internal or inventory need. The purchase requisition goes through an approval process, and then a purchase order is filed based on the requisition.
The Latest In Purchase Requisition Software
2020 has been a historical year by all means. Between the worldwide COVID-19 pandemic, as well as the social and civil unrest, and the astronomical levels of global-tension, 2020 is sure to go down in the history books.
One of the significant impacts that the year has had on the working sector specifically is the large transition to work-from-home environments. The remote work landscape has altered the way procurement professionals operate on a daily basis. As such there have been some shifts in the way that procurement professionals utilize the various softwares.
With procurement professionals working from home, the software that helps them manage their supply-chain has also had to shift to accommodate an entirely virtual workforce.
This was already becoming a trend in the procurement world as many organizations have been selecting cloud-based procurement solutions. These solutions offer teams the capability to work entirely remotely from one another, while still sharing all of the vital information that allows them to collaborate and manage supply chain needs.
Due to the other significant shifts in 2020, many businesses are operating at under 100%. This also affects how much inventory businesses are carrying, and moving on a monthly, and even weekly basis.
Since the entire economy has felt the impacts of COVID-19, departments should prepare to utilize smaller purchase-requisitions and tighter budgeting.
Another significant difference from pre-COVID in procurement is the average contract length. There are multiple factors that are playing a part here.
The first is simply market volatility. In the wake of COVID-19 the economy has been extremely unstable. Dropping dramatically, and while it seems we’ve somewhat recovered for the time being, ther market remains dangerously volatile.
On top of that, and as mentioned above, departments are operating with tighter budgets than ever before. So although a sturdy supply chain is more crucial today than it ever has been before, contracts are starting to significantly decrease in length.
Get The Latest On Procurement Software
Purchase requisition software, and most procurement softwares, have been making swift and agile adjustments in the wake of COVID-19. In an already tech-dominated field, the added environment has created a culture of rapid development within procurement.
To stay on top of the constantly shifting developments in procurement and the latest most sophisticated procurement software available visit ProcurePort today and get in touch with an industry expert ready to tackle your procurement needs.