What is a Purchase Request (PR)?

A purchase request is an internal document used in companies to communicate the need for goods or services. This document serves as a formal request from a department to the procurement department or management to purchase specific products or services, for example, this can be done through purchasing software.

How is a Purchase Request processed?

A purchase request usually goes through a multi-stage approval process before it is converted into a purchase order. First, the request is drawn up by the requesting department and must contain specific information such as type, quantity and justification for the need.

This request is then forwarded to the relevant department, often the purchasing or finance department. Here the application is checked for completeness and budget compliance.

If the application is approved, appropriate offers are obtained (for example via the RFX method) and finally a purchase order is created based on the best offer. This process ensures that all purchases comply with company policies and are managed efficiently.  

What are the 4 types of Purchase Requests?

Purchase requests can come in different formats and types, depending on a company's specific needs and the type of goods or services requested.

1. Standard Purchase Request: This is the most common type, used for everyday purchases, such as office supplies or standard software.

2. Planned Purchase Request: For recurring orders that occur regularly over a certain period of time, such as monthly deliveries of cleaning products.

3. Capital goods requirement:For larger purchases such as machinery or large IT systems that require extensive assessment and approval.

4. Emergency Purchase Request:These are used in urgent cases when quick decisions need to be made, often outside of normal procurement processes.  

What is the difference between Purchase Order and Purchase Request?

A purchase request is the first step in the purchasing process in which a need is registered. This need must be reviewed and approved before a purchase is actually made.

A purchase order, follows an approved purchase request and is a legally binding document between buyer and seller that specifies the exact details of the purchase, such as quantity, price and delivery terms.  

What advantages does a systematized Purchase Request process offer?

Implementing a structured and systematized purchase request process offers companies numerous advantages. Firstly, it leads to improved transparency in procurement, as every step from the request to the order is traceable. This makes it easier to monitor and control company expenses.  

Second, the process improves efficiency by ensuring that resources are procured in a timely manner and in accordance with company priorities.

Third, the standardized process can increase compliance as all purchases must comply with internal guidelines and external regulatory requirements.

Ultimately, this leads to optimization of procurement cycles and reduction of unnecessary expenses, reducing the company's total cost of ownership.

Purchase Request: Conclusion:

A purchase request is an essential instrument in company procurement management. It helps in the systematic capture and approval of purchase requests and ensures controlled and efficient spending of company funds.

The distinction between purchase request and purchase order is important because it helps maintain organizational control over spending and ensure compliance with company policies. By understanding the different types of purchase requests, companies can better organize and optimize their procurement processes.