Process of Requesting Spend and Raising Purchase Orders

The process of requesting spend and raising purchase orders is a critical aspect of managing finances and ensuring the smooth operation of any organization. However, it is not without its challenges. In this blog post, we will explore the key pain points identified by individuals involved in this process and discuss potential solutions to address them. Through a survey, we gathered valuable insights from respondents, and we will present these findings in a table format for easy reference. Let's dive in! 

Identifying the Pain Points: To understand the pain points associated with requesting spend and raising purchase orders, we collected responses from finance professionals working in the AP process. Here are some of the most common responses. 

• Time: Requesting spend takes too long. 
  
• Policy adherence: Team members don't adhere to company procurement policy when requesting spend. 
• Slow approvals: Approvers take too long to request spend, creating bottlenecks. 
  
  

Key Findings and Proposed Solutions: After analyzing the responses, several recurring pain points emerged. Let's explore them one by one and discuss potential solutions: 

Speed: Many respondents expressed the need for a faster process, whether it be spend approval, payment to suppliers, or reducing the time spent on discussions and meetings. To address this, organizations can implement automated systems that streamline the approval process and enable self-service options for employees to request spend. 

Adherence to Policy: Maintaining adherence to organizational policies and procedures is crucial. Implementing digital systems that enforce policy compliance, provide real-time notifications, and flag potential deviations can help ensure adherence to policy guidelines. 

Manual Processes: Several pain points, such as manual quote comparison and processing of purchase requisitions, highlight the inefficiencies associated with manual tasks. Introducing automation tools and electronic procurement systems can significantly reduce manual efforts, improve accuracy, and enhance overall efficiency. 

Budget Management: Tracking spend against budgets is a common challenge. By integrating budget management tools into the purchase order process, organizations can compare purchase orders to the line budget, enabling approvers to identify potential budget overruns before approving spend. 

Changes in PO Amounts: For businesses that organize conferences and events, costs can change from the original quote due to various factors. Employing flexible purchase order systems that allow modifications, automated notifications of changes, and seamless communication between stakeholders can address this pain point. 

Conclusion: The process of requesting spend and raising purchase orders can be fraught with challenges, but by identifying the key pain points and implementing suitable solutions, organizations can streamline