Survey

When is it less favorable to obtain quotes or sealed bids when you have no clear product or service specification?

When you have no price forecast or budget.
When you don't know of any capable suppliers.
When no purchase has been approved.
When there is no advantage in obtaining competitive bids.
Where any cost saving would be insignificant.
None are favorable.

Encourage the Use of Purchase Requisitions

Date: 05/01/2004

In some companies when someone needs a product or service the request is made orally. When many of these oral requests are made in a relatively short amount of time, it becomes difficult to remember who wanted what and when it is needed. Even hand written notes can cause problems. They are often vague and can be difficult to read. Poor penmanship can produce all sorts of mistakes.

The use of a well-designed purchase requisition form can simplify the purchasing process and avoid confusion. The form helps to standardize requests for items and aids in communication among departments. Proper use of purchase requisitions can even cut costs. Time is saved because in most cases the purchasing department will not have to contact the requisitioner to clarify or get more details.

Designs of purchase requisitions vary from business to business, but all should have some common traits. All purchase requisitions should include: the date the form is being filled out, the name of the person filling out the form along with his or her signature, the name of the item or service requested and a clear description, the quantity to be ordered, and the date when the item or service is needed.

There may be other items on the form, also, depending on the company and business. Some of these might include: the name of known or previously used suppliers, price, usage, the frequency the item or service is needed, or even supplier delivery terms and conditions.

A well-designed purchase requisition that is blank and can be printed is available to members on the Society’s website at www.american-purchasing.com. The form can be found in the Members Only area.