Question 1

What is a purchase requisition and how does it differ from a purchase order?

Accepted Answer

A purchase requisition is an internal document submitted by a department or individual to request authorization to make a purchase — it is the first step in the procurement process. It communicates the need, describes what is required, estimates the cost, and routes through an approval workflow before any commitment is made to a supplier. A purchase order (PO), by contrast, is an external document issued to a supplier after the requisition has been approved and a vendor selected — it is the legal commitment to buy. The requisition serves as an internal control mechanism that ensures purchases are properly authorized and aligned with budget before the PO is issued. Confusing the two or skipping the requisition step creates gaps in internal controls, makes spend visibility difficult, and can expose the organization to unauthorized commitments and budget overruns.

Question 2

What information should be included in a purchase requisition?

Accepted Answer

A well-designed purchase requisition captures all the information needed for procurement to process the request accurately and efficiently. Essential fields include a clear description of the goods or services needed, the quantity required, the estimated unit cost and total value, the required delivery date, the requesting department and cost center for budget allocation, the name and contact information of the requestor, the business justification for the purchase, any preferred vendor if applicable, and the appropriate approval signatures based on the dollar threshold. For services, the requisition should include or reference a Statement of Work (SOW) describing what the vendor is expected to deliver. Incomplete or vague requisitions are one of the most common causes of delays in the procurement cycle, as purchasing staff must follow up for missing information before proceeding. A standardized requisition template reduces these delays and improves data quality across the procurement process.

Question 3

What are the different types of purchase requisitions and when should each be used?

Accepted Answer

Organizations typically use several types of purchase requisitions depending on the nature of the purchase. A standard materials requisition is used for direct purchases of goods — raw materials, inventory items, or physical supplies — where specifications and quantities are clearly defined. A services requisition is used when procuring contracted labor or professional services and typically requires an accompanying Statement of Work that defines deliverables, timelines, and performance standards. A blanket or standing requisition authorizes recurring purchases up to a defined value over a period of time, reducing the need for individual requisitions for predictable, recurring spend. An emergency or expedited requisition is used for urgent unplanned needs and typically routes through an abbreviated approval process. Understanding which requisition type applies to which situation ensures that the purchasing process is appropriately calibrated to the purchase complexity and risk.

Question 4

What are common pitfalls in the purchase requisition process?

Accepted Answer

Purchase requisition pitfalls can slow procurement cycles, create compliance gaps, and result in goods or services being obtained outside of proper authorization channels. The most common error is under-specifying the item or service needed — vague descriptions like office supplies or consulting services force purchasing staff to seek clarification, extending lead times unnecessarily. Inflated quantity requests used to create purchasing buffers distort spend data and tie up budget unnecessarily. Submitting requisitions with unrealistic delivery timelines that do not account for sourcing and lead time creates pressure for informal purchasing that bypasses controls. Failure to include a Statement of Work for services purchases leads to scope ambiguity and contract disputes. Routing requisitions through incorrect approval hierarchies delays processing. Regular training for requisitioning departments on how to complete accurate, complete requisitions is one of the most effective investments in overall procurement process efficiency.

Question 5

How does vendor-managed inventory (VMI) relate to the requisition process?

Accepted Answer

Vendor-managed inventory (VMI) is an arrangement in which the supplier takes responsibility for monitoring and replenishing a customer's inventory levels within agreed parameters, reducing or eliminating the need for the buyer to submit requisitions for routine replenishment. Under VMI, the supplier has visibility into the buyer's inventory data and initiates replenishment orders proactively when stock reaches agreed reorder points. This shifts the administrative burden of routine ordering from the buyer's procurement team to the supplier, allowing procurement to focus on strategic activities. VMI is particularly valuable for high-volume, predictable MRO items, components, or supplies where transaction costs are high relative to item value. Successful VMI programs require clear agreements on replenishment parameters, strong data-sharing infrastructure, regular performance monitoring, and defined protocols for managing exceptions or changes in demand patterns.

Purchasing Requisition Design

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Michael W. Gozzo

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