You need to raise a purchase request, for spend in your department, but you’re not sure what this entails. This comprehensive guide aims to demystify the concept of a purchase request, elaborate on its significance, outline the typical process of raising one, and how Kloo makes purchase requests a seamless part of your workflow. Whether you’re a new start-up or an established corporation, mastering this process is key to financial efficiency and operational success.
What is a Purchase Request?
A purchase request is an organisation-internal form or document which lays out a proposed purchase of goods or services for approval by the necessary decision-makers. This typically encapsulates details like the item's description, quantity, estimated cost, and the rationale behind the purchase. It is the first step of the procurement process, which ensures financial control and fosters a culture of transparency in corporate expenditure.
Why Do Purchase Requests Matter?
- Financial Control: It acts as a safeguard against unnecessary or duplicate purchases, allowing decision-makers the ability to review and contest spend before it is committed.
- Budget Compliance: Purchase requests ensure that all purchases align with the company’s budgetary constraints and financial planning, improving compliance to budgets and financial forecasting.
- Procurement Efficiency: Streamlines the purchasing process, minimising confusion and delays, thereby enhancing operational efficiency.
- Compliance and Audit Trails: A well-documented purchase request process aids in meeting compliance standards and provides essential documentation for financial audits.
How to Raise a Purchase Request:
- Manual:
In many companies, the process of raising a purchase request is still quite manual. This typically involves accessing a specific form, often stored in a shared drive. The requester must locate the form, fill it in with the necessary details such as the item name, quantity, price, and purpose of the purchase, then send this off for approval as an email attachment. All-in-all, this process is time-consuming and inaccessible.
- Basic AP Software:
With the advent of digital solutions, many organisations have moved to basic accounts payable software to manage purchase requests. In this scenario, an employee would have to remember their password for a platform they only use infrequently, log in, and then fill in a digital form. It’s a step up from manual processes but it still leaves a lot to be desired.
- Kloo:
Kloo offers a more advanced and efficient approach to raising purchase requests. Utilising AI-powered purchase request creation, Kloo enables users to raise requests directly through a messaging interface. Users can request spend in natural language via email or chatbot. The AI interprets the request, and the necessary details are automatically populated and processed. This approach not only simplifies the task for the user but also minimises the risk of errors associated with manual data entry.
Benefits of Using Kloo for Purchase Requests
Opting for Kloo to manage your purchase requests offers several advantages:
- Time Efficiency: Kloo’s digital platform expedites the process, reducing the time needed to raise a purchase request.
- Employee Buy-In: The easier a process is, the more likely people are to follow the procedures, reducing unapproved spending.
- Improved Compliance: Kloo’s system is designed to align with your organisation’s procurement policies and budgetary guidelines, ensuring compliance.
- Centralised Documentation: All requests are stored centrally, facilitating easy access and audit trails.
- User-Friendly Interface: Designed for ease of use, Kloo’s interface ensures that raising and managing purchase requests is straightforward and hassle-free.
Conclusion
In conclusion, raising purchase requests is a crucial part of spend management, that requires buy-in from the whole organisation. It ensures financial control, budget adherence, and operational efficiency. Utilising a platform like Kloo not only simplifies this process but also brings a level of sophistication and control to your procurement procedures. By integrating these practices, businesses can achieve a streamlined, transparent, and efficient procurement process, pivotal for the smooth operation and financial health of any organisation.
