The manual paper based purchase order process is a dinosaur that was probably developed decades ago. These processes are full of inefficient rules and redundant approvals that probably was set up years ago based on established rules and regulations relevant at the time. Today, these processes most likely still exist today “Because it has always been done this way “as the justification to the reason the process works the way it does.
In government, public and private based businesses alike, the requisition approval process is most likely taking days, if not weeks, to go through the “black hole” before the order is placed. This is usually the main reason why many organizations use a blanket PO process so heavily.
When implementing an e-procurement tool, one of the activities used as a best practice model is approval process mapping. This exercise allows each department to validate their own business rules for requisition approvals based on today’s rules. Once the as-is process is defined and visually mapped out, the flow chart will bring those inefficiencies out very quickly because they were based on old business practices.
Do you have Redundant Purchasing Processes?
Approvals can be done more efficiently with online e-procurement!
It is easy to follow a process flow and challenge everyone on the approval rules and procedures. Some of these business rules still apply, but the authorization rules may need to be changed based on how the organization operates today.
Due to human nature, there is little thought of changing the approval process unless the question; “Why are we doing this way” is asked. It is healthy to challenge the current business rules from time to time to make sure your approval process and business rules are at peak performance. To support the need for re-evaluation and possible change, a departmental approval chart can help get everyone to see the need for change if put in front of them.