A Purchase Requisition Form, which may also be referred to as a Purchase Request, is a document that is used within an organisation, whether in the public, private or voluntary sector, to tell the department responsible for purchasing items, that an item is required. Generally the form will offer information about the number of items that are required, the type of items and when the items are needed by.
However, there is other information that should be included to ensure that the Purchase Requisition Form (PRF) is as comprehensive as possible. The PRF is the trigger for the purchasing of items and needs to clearly show who authorised the purchase of goods and where the need originated, so that it can be retained if required for proof in the future.
If items are simply bought with no records kept then there is no proof of who bought the item, why they bought the item and who authorised it, in fact it would simply be unmanageable for companies to exist without purchase requisitions, especially if the company is a large one and it is hard to keep track of expenditure authorisations. It needs to have some key elements, but should not be overly complicated, or it will require too much administrative overhead.
Layout
The requisition requires the purchasing department to supply goods. So if an employee requires10,000 screws, then they would fill out a PRF. The layout of the form needs to include the following:
What is required: This section outlines exactly what is required. There needs to be room for the employee to describe or provide specification on what is required, so that the correct items are bought.
Quantity required: This part of the PRF indicates exactly how many are required. After all the purchasing department may not be familiar with end user requirements, so they have to be told the minimum of how many items are needed (note this may not be how many are procured due to Minimum Order Quantities dictated by the supplier).
Details of Supplier: Possible sources of supply need to be highlighted to support the purchasing department in obtaining price and delivery information. There are occasions when the purchasing department may hold details of suppliers for specific goods, so the supplier put forward may not be used.
Need by date: It is important to know when the items are required. If they are urgent then this needs to be highlighted but the delivery date does need to be included. If items have to be secured by a certain date then this has to be clearly stated within the form.
Budget information: The purchasing department will need to know how much money its authorised to spend coupled with what booking/cost code will be charged.
Who Authorised this: There is a need for a signature or electronic input as to who actually authorised this purchase. Then if there is a problem in the future, then it is clear who actually said that it was ok to purchase these items.
Any other information: This section should include any other relevant information that needs to be included for some specific orders. That could be information about the fragility of the goods requested or the way that they need to be transported or stored. It is the section where any ‘special needs’ can be highlighted.
Purchase Requisition Forms And Purchase Orders
A PRF is an internal document. It cannot be used to secure the actual goods and items themselves. It does not leave the organisation, whereas a purchase order is an order between two companies and leaves one company to be received by another, even if this is done electronically. A PRF cannot be used outside the company but simply is a clear record of what was purchased and who instigated the order.
The Role Of A Global Commodity Manager
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A global commodity manager is a key individual within the purchasing organisation. It is a complex role that requires a number of skills, qualifications and attributes.
A global commodity manager does more than simply buy commodities on a global basis. Instead the global commodity manager co-ordinates the procurement strategy for that commodity. This will involve an in depth understanding of the market, supplier sourcing, risk and performance management.
Due to the fact that the global commodity manager will be operating on a global basis, they will need to demonstrate a real understanding of the market, not just of their own locality, but globally, so the manager needs to be able to identify new opportunities and innovation and ensure that these are exploited.
The global commodity manager also needs to be able to minimise risk. In short this means that the manager has to develop an appropriate risk mitigation strategy through an appropriate supplier network maintaining continuity of supply whilst reducing risk within the supply chain as a whole!
In operational terms the manager will act as a conduit and liaise between the various manufacturers/suppliers and the procurement community. The manager is expected to support global suppliers, whilst not being hands on, but operating at a strategic level supporting the needs of the business.
The global commodity manager must be able to see exactly how the global and strategic procurement policy fits in to the overall company strategy. For this reason it is typically a senior position within the company and must fit in to all the goals and aims that the company has and the global commodity manager has to ensure that procurement drives the fulfilment of these aims. So it is an important role and one that should be viewed as critical, if the purchase and procurement of global commodities are to be kept down.
Qualifications:
The qualifications for a global commodity manager vary according to whether the company is an industrial company, a technological company or is manufacturing based. However, as a general rule, most commodity managers, especially global commodity managers will have at least a degree and some global experience specifically in strategic sourcing and or buying.
All global commodity managers have to show that they are able to lead and have the capacity to juggle several (metaphorical) balls in the air simultaneously, whilst ensuring that the small details are not overlooked.
Given the complexity of the role, the salary for this post is generally higher than a typically buyer and can represent the prestigious reward on the procurement career path however it does come with responsibility and more than a few challenges!