Centralizing purchase requisitions, monitoring budget consumption and controlling invoice payment has never been easier. Thanks to a new generation of purchase requisition software, also known as Procure to Pay, companies can finally simplify the work of their teams, make approval circuits efficient and optimize their procurement process.
This new generation is based on a number of pillars that make them suitable for all company sizes, and especially for SMEs:
- Quick set-up thanks to no-code functionalities, i.e. set up without having to write a single line of code or call in a technical integrator.
- Total customization of functionalities, so that purchase requisition software is tailored to your company’s operations
- Transparent pricing for all types of business.
In this guide, you’ll discover a complete overview of why and how purchase requisition software can positively transform your company’s efficiency, while eliminating common frictions such as multiple re-entries, complex information searches, order errors or late payments.
What is Purchase requisition software?
Definition of Procure to Pay software
Purchase requisition software (also known as Procure to Pay) is a software tool that allows you to :
- Formalize and centralize all purchase requisitions,
- Set up a clear, dynamic approval circuit (manager, director, procurement department, etc.) based on multiple criteria,
- Manage orders, invoices, payments and traceability of operations,
- Consolidate and share financial, budgetary and performance data in real time.
This type of software structures the entire procurement process, from identification of the need (for a raw material, a service or a finished product) to final payment and document archiving.
A company without Purchase requisition software
In a traditional operation without digitalization, we see :
- Unpleasant tasks for teams
- Multiple Excel spreadsheets, not always up to date,
- Scattered emails to validate approvals,
- Recurring data entry errors,
- Slowdowns and friction in approval circuits and collaboration
- Lack of real-time visibility on inventory or orders.
- Compliance issues
Purchase requisition software then offers a smoother experience by “guiding” each user through the various steps and automating a number of tasks, such as sending emails, filing documents, updating ERP, CRM…
Why is Purchase requisition software essential?
The first challenge is cost control. Without a clear vision and an established process, purchasing can drift out of control: sub-optimal orders, unexpected invoices, the tendering process flouted.
The second issue is operational efficiency. Manual tasks (copying and pasting data from one spreadsheet to another, validating by email, re-entering invoices, etc.) generate both a waste of time and an increased risk of errors.
How can we ensure that managers, purchasing and accounting departments always have up-to-date information? Without a unified tool, the result is delays, incessant reminders and general frustration.
Key features of Purchase requisition software
Beyond the simple creation of a purchase requisition and management of orders through to receipt of the invoice, modern Purchase requisition software covers a wide range of functions.
Simplified, automated and automated
Thanks to guided experiences via a sequence of dynamic forms, teams can simply enter a purchase requisition, filling in only what is necessary. Procure to Pay software takes care of the rest.
All requests are therefore centralized for better monitoring and control.
Customized approval circuits
Each organization has its own way of operating. Some require approval from the director for any expenditure over a certain limit, others require approval from the finance department for any purchase, and so on.
Modern Purchase requisition software integrates these approval circuits in the form of configurable workflows (particularly in no-code).
Order management through to payment
Purchase requisition software enables you to track the entire life cycle of an order: from sending the purchase order, to receiving the order, checking it and, if necessary, returning it, and receiving invoices for deposits and balances.
Step by step, data is automatically re-entered to simplify team work and the reconciliation of requisitions, orders and invoices.
ERP, CRM, accounting software integration…
Purchase requisition software only makes sense if it fits seamlessly into the company’s information system.
Connected to the ERP system for automatic feedback of stock data or negotiated prices, to the CRM system to link information to the customer, and to the accounting software to share financial information.
Data is shared in real time between all the company’s tools.
Supplier management
Purchase requisition software also includes a supplier relationship management dimension.
In particular, this enables you to: have a centralized, up-to-date supplier repository (names, contact details, current contracts, ratings, performance history), carry out performance and quality assessments (deadlines met, non-conformity rate), and track the progress of their orders.
Operational follow-up and reporting
Procure to Pay software provides visibility and clarity on current requisitions and orders. Managers and directors can easily monitor operations and budget consumption.
Data analysis then enables you to make informed decisions thanks to real-time, always up-to-date data. It is further enhanced by connection with existing software.
The benefits of good requisition and Purchase requisition software
Reliable supply
Avoid late orders and tight delivery schedules. Avoid price mark-ups and unfavorable conditions. Reduce stock-outs.
Reducing costs
Delays are reduced, exchanges are more efficient, and bottlenecks are eliminated. Processing costs and order errors are reduced.
Structuring the process
If there’s no clear demand, there can be uncontrolled purchasing. This often leads to duplication, overstocking or unexpected invoices.
Control budgets
The purchase requisition requires us to ask questions about the estimated cost, the relevance of the expenditure, the cost center to be impacted, and so on.
Avoiding fraud
An internal validation circuit ensures that every expense is justified, preventing employees from ordering without follow-up.
Increasing transparency
The purchase requisition is the first link in the traceability chain for finance teams, the purchasing department and general management.
Improving collaboration
Standardizing practices makes everyone’s work more comfortable, and avoids complex, convoluted searches for information.
Compliance
Compliance with internal constraints and external standards. High-performance collaboration and reporting tools make it easier to prove each audit point.
How to choose the right Procure to Pay software?
Purchase requisition software criteria :
- Ergonomics and ease of use: a tool that’s complicated to learn how to use will be little adopted by teams. We need intuitive software that employees can quickly find their bearings in.
- No-code customization (workflow, rules, business specificities): as each organization has its own rules, the software needs to be set up (ideally no-code) to define forms, approval circuits, conditional validations, etc. Thanks to no-code functionalities, i.e. without having to write a single line of code, both business and technical administrators can rapidly improve the procurement process.
- Integration with your existing software: connect to your existing ERP, CRM or HRIS via connectors or APIs.
- Budget and billing model: some publishers charge per user, others per transaction. Evaluate the suitability for your volume of purchases.
- Support and guidance: the quality of support and documentation is crucial to resolving any bottlenecks as quickly as possible. Some software publishers require you to order an additional service from an integrator.
Stages in the implementation of Purchase requisition software
Once the right solution has been chosen, three phases follow, which may be concomitant depending on the software.
Installation and customization
Set up of the Purchase requisition software allows you to adapt the tool to your operation: personalized approval circuit, dynamic forms, data re-display, automation with your other software, setting up of dashboards.
Even if the approval workflow is clear, allow for exceptions. Urgent purchases may require an accelerated circuit (an immediate repair requirement, a last-minute order for a vital customer…).
No-code solutions like Lapala make this customization much easier, without requiring advanced IT skills.
Training
With ergonomic software, training is often very brief, as all operations are guided and interfaces are intuitive. However, team awareness must not be neglected:
- Explain the benefits of the software (reduction of worthless tasks, elimination of errors, time savings),
- Reassure those who fear “cops” or additional complexity,
- Show a concrete case: for example, the creation of a purchase requisition to illustrate speed and ease.
Measure performance and adjust
Once the solution is in place, track key performance indicators (KPIs):
- Average validation time: how many days elapse between application and approval?
- Compliance rate: how many non-compliant requests are rejected?
- Time spent by the procurement department: has it decreased since digitalization?
If an indicator stagnates or deteriorates, look for the cause (circuit too complex, mandatory fields poorly defined) and adjust the configuration. The advantage of modern Purchase requisition software is its flexibility: you can quickly modify a field, a rule or an authorization level.
How long does it take to implement Purchase requisition software?
Time depends on many factors:
- Customization thanks to no-code functionalities is relatively quick, on the order of a week.
- The connection to your ERP, CRM depends on your software’s APIs… it can vary from day to week, depending on the software to be connected.
- Training can be very quick for some intuitive solutions. Less intuitive software will require more extensive change management.
- Team size. Depending on your company’s organization and the stakeholders involved, deployment can take from a few weeks to a few months. We advise you to go department by department, starting with those who make the most requests, and who will therefore more easily see the benefits of Purchase requisition software.
Set-up time depends mainly on the software you choose. With Lapala, set-up is quick and provides an initial return on investment after just a few weeks of use.
Conclusion – Towards tighter cost control and greater operating efficiency
Purchase requisition software, or Procure to Pay, is no longer a luxury, but a central link for any company wishing to control its expenditure, reduce the risk of errors and gain in fluidity. Indeed, once a certain volume of purchases is exceeded, it becomes difficult to manage flows manually, without losing reliability or responsiveness.
By adopting this solution, and relying on best practices, you can :
- Reduce the administrative burden considerably,
- Better negotiate with your suppliers thanks to easier traceability and comparison,
- Centralize your data to make informed decisions,
- Optimize the approval circuit to shorten lead times,
- Increase internal (procurement team, finance, managers) and external (suppliers, partners) satisfaction.
Leave a Reply