What Are The Different Types Of Purchase Requisitions In Procurement?

Are you new to the world of procurement and feeling a little overwhelmed by all the terminology? Don’t worry, we’ve got your back! One term that often comes up in procurement is “purchase requisition.” But what exactly does this mean, and why are there different types? In this blog post, we’ll break down the various types of purchase requisitions to help you better understand their purpose and how they fit into the overall procurement process. So buckle up and let’s dive in!

What is a purchase requisition?

In business, a purchase requisition is an internal request to buy goods or services. It is typically used in organizations with a centralized purchasing department that controls and manages all procurement activity.

A purchase requisition is usually initiated by someone in the organization who needs the goods or services. The requisition may be approved by a manager or other authorized individual before it is submitted to the purchasing department.

Once the purchasing department receives the requisition, they will begin working on procuring the requested items. This may involve contacting vendors, requesting quotes, negotiating prices, and more. Once the purchase has been made, the goods or services will be delivered to the requester.

There are many different types of purchase requisitions that can be used in procurement. Some common types include:
– Standard Purchase Requisition: This type of requisition is used for routine purchases that are not time-sensitive.
– Emergency Purchase Requisition: This type of requisition is used when an organization needs to procure goods or services quickly due to an unexpected event or change in circumstances.
– Blanket Purchase Requisition: This type of requisition is used when an organization wants to pre-approve a set amount of money for future purchases from a specific vendor.
– Contractual Purchase Requisition: This type of requisition is used when an organization wants to procure goods or services under a specific contract agreement.

Different types of purchase requisitions

There are four different types of purchase requisitions in procurement:

1. Standard Purchase Requisition: This is the most basic type of requisition and is typically used for routine, low-value purchases. It includes the minimum amount of information required to process the request.

2. Pre-approved Purchase Requisition: This type of requisition is used for high-value or mission-critical purchases that require more scrutiny. It includes additional information such as a detailed description of the item being purchased, the estimated value of the purchase, and why the purchase is necessary.

3. blanket Purchase Order: A blanket purchase order (BPO) is an standing order with a supplier for a certain amount of goods or services over a period of time. BPOs are typically used for recurring purchases or when there is a need to maintain a certain level of inventory.

4. Contractual Purchase Requisition: This type of requisition is used when procuring goods or services from a supplier under contract. It includes information such as the contract number, supplier name, and contract expiration date.

How to choose the right type of purchase requisition

There are many factors to consider when choosing the right type of purchase requisition for your needs. The first factor to consider is the type of goods or services you need. If you need a one-time purchase, then a spot purchase requisition may be the best option. If you need a recurring purchase, then a blanket purchase requisition may be the best option.

The second factor to consider is the price of the goods or services you need. If you are looking for the lowest price possible, then a competitive bidding requisition may be the best option. If you are willing to pay more for higher quality goods or services, then a sole source requisition may be the best option.

The third factor to consider is the lead time for the goods or services you need. If you need the goods or services immediately, then an emergency requisition may be the best option. If you can wait for the goods or services, then a standard requisition may be the best option.

The fourth factor to consider is whether or not you have a preferred vendor for the goods or services you need. If you have a preferred vendor, then a direct purchase requisition may be the best option. If you do not have a preferred vendor, then an open purchase requisition may be the best option.

The benefits of using purchase requisitions

When it comes to procurement, purchase requisitions are an essential tool. They help organizations keep track of their spending, ensure that they are getting the best value for their money, and streamline the purchasing process.

There are several different types of purchase requisitions, each with its own advantages. Here is a look at the most common types of purchase requisitions and their benefits:

1. Standard Purchase Requisition: This is the most basic type of purchase requisition. It includes all of the necessary information about the item or service being requested, such as quantity, price, delivery date, etc. Standard purchase requisitions are used for routine purchases and do not require approval from higher-ups.

2. Emergency Purchase Requisition: As the name suggests, emergency purchase requisitions are used for urgent purchases that cannot wait for a standard requisition to be processed. These requests must be approved by a supervisor or manager before they can be processed.

3. Blanket Purchase Requisition: A blanket purchase requisition is used when an organization needs to make frequent purchases of the same item or service over a period of time. This type of requisition allows businesses to pre-approve spending on an item up to a certain amount, which can save time and hassle down the road.

4. Contractor Purchase Requisition: A contractor purchase requisition is used when an organization contracts with another company to provide goods or services. This type of requisition includes all

The drawbacks of using purchase requisitions

There are a few drawbacks to using purchase requisitions in procurement. First, they can be time-consuming to create and monitor. Second, they may not always be accurate or up-to-date. Finally, they can be cumbersome to manage if there are a lot of them.

Conclusion

In summary, the different types of purchase requisitions in procurement can be broadly classified as direct, internal, and external. Understanding these distinctions is important for any procurement manager or organization that wishes to ensure a successful purchasing process. By using the right type of purchase requisition for your business needs, you will gain greater control over costs and maximize efficiency when sourcing goods or services from vendors.