Is There a Difference Between a Material Requisition and a Purchase Requisition? (A PI Q&A)
Is There a Difference Between a Material Requisition and a Purchase Requisition? (A PI Q&A)
Some pundits may splice hairs by saying that one process or function is internal facing (purchase requisition) and the other is external facing (material requisition), while others may suggest that they are interchangeable terms – similar to the “differences” between purchasing and procurement, it matters not in the end if the real-world processes that define your business model are not collaboratively identified and collectively understood.
With 85% of all e-procurement/supply chain initiatives failing to achieve the expected results, a debate surrounding terminology would seem to be an exercise in shadow boxing.
I am not suggesting that the varied definitions are incorrect or even in and of themselves unnecessary. However given that most enterprises attribute the requisition process as being an integral part of an organization’s internal financial controls, perhaps a more pertinent question would be how to overcome or “bridge” the communications gap between finance and purchasing.
In the context of the results of a 2007 Aberdeen survey, the disconnect between the financial imperatives of the CFO, and the operational requirements of the CPO means that supply chain issues go much, much deeper than the discernment of industry terminology. (Note: I have provided a number of links under the Web Resources section to corresponding articles discussing the survey’s results.)
Here are just a few of the findings from that survey:
· Of the total savings claimed by purchasing departments 73% are discounted as being invalid by the finance department.
· Less than 20% of CFOs feel that the work of the CPOs and their staffs as having a very positive impact on competitiveness.
· On average only 46% of CFOs feel that the procurement team has contributed to enterprise growth.
Once again, and given the fact that the requisition process is seen largely as a means of establishing the necessary control mechanisms deemed by the finance department as being important, doesn’t it make more sense to focus on collective process understanding and refinement through effective stakeholder collaboration?
Web Resources: To obtain the reference material associated with this article, please contact the author.
Is There a Difference Between a Material Requisition and a Purchase Requisition A PI QA - To learn more about this author, visit Jon Hansen's Website.
Like this article? Share it with your friends
My Response
Some pundits may splice hairs by saying that one process or function is internal facing (purchase requisition) and the other is external facing (material requisition), while others may suggest that they are interchangeable terms – similar to the “differences” between purchasing and procurement, it matters not in the end if the real-world processes that define your business model are not collaboratively identified and collectively understood.
With 85% of all e-procurement/supply chain initiatives failing to achieve the expected results, a debate surrounding terminology would seem to be an exercise in shadow boxing.
I am not suggesting that the varied definitions are incorrect or even in and of themselves unnecessary. However given that most enterprises attribute the requisition process as being an integral part of an organization’s internal financial controls, perhaps a more pertinent question would be how to overcome or “bridge” the communications gap between finance and purchasing.
In the context of the results of a 2007 Aberdeen survey, the disconnect between the financial imperatives of the CFO, and the operational requirements of the CPO means that supply chain issues go much, much deeper than the discernment of industry terminology. (Note: I have provided a number of links under the Web Resources section to corresponding articles discussing the survey’s results.)
Here are just a few of the findings from that survey:
· Of the total savings claimed by purchasing departments 73% are discounted as being invalid by the finance department.
· Less than 20% of CFOs feel that the work of the CPOs and their staffs as having a very positive impact on competitiveness.
· On average only 46% of CFOs feel that the procurement team has contributed to enterprise growth.
Once again, and given the fact that the requisition process is seen largely as a means of establishing the necessary control mechanisms deemed by the finance department as being important, doesn’t it make more sense to focus on collective process understanding and refinement through effective stakeholder collaboration?
Web Resources: To obtain the reference material associated with this article, please contact the author.
Is There a Difference Between a Material Requisition and a Purchase Requisition A PI QA - To learn more about this author, visit Jon Hansen's Website.
Like this article? Share it with your friends
 | |
 |
No article feedback found. |
| |
Leave Your Feedback |
 | |
| |||
Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
|||
|
To learn more about the Evan Elite Author Program please contact us. | |||
 | |
|  |
Subscribe to Jon's articles
 | |
|
|  |
 | |
|
| |
 | |||||||
|
 | ||
 |
||
 |
||
 |
||
|
| ||
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"
Click Here To Learn More |
|
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
|
 Making Life Work 9 Questions From New Marketers Corporate Secrets NichePreneur Mindset Articles Drive Traffic |
|
 | ||
 |
Write The PR
Press Release Builder | |
 |
Top 50 Blogs For Startups
Top Blogs To Watch In 2008 | |
| ||
 | ||||
| ||||
|
| ||||
| ||||
|
|
|
|
|
||||||||||||
|
Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
|
|
|
