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Buyer Analytics Purchasing Blogs - News About Procurement

5 Reasons to use a Purchase Requisition Form

Ever wonder what information is required by procurement to place a purchase order? Much of the data needed will come from the supplier - but certain information is needed from the requestor. Check out the purchase requisition template for parts.

  1. Segregation of Duties

    Segregating duties for requesting supplies and placing purchase orders provides sound financial controls. Some of the worst kick back schemes caused by unethical employees and suppliers can be avoided just by segregation of duties.

  2. Funds Authorization / Budget Control

    Requiring a requestor to document the purchase simply avoids spending money without management approval. This helps create a no surprise environment when budgets are evaluated against goals or spending limits.

  3. Transaction Efficiency

    With this one document users can efficiently provide procurement with what's needed to place a purchase order. Procurement can avoid countless email gathering the information needed for a purchase order.

  4. Requestor Engagement

    If you are strained for resources - get department users involved in the procurement process. If they can provide accurate information the time and cost to complete a purchase order will be greatly reduced. This will allow procurement to spend more time on value added activities.

  5. Performance Tracking

    Track the time to place a purchase order by requestor and buyer. Use this information as a tool to track department customer service data. For example, percent purchase orders placed in 3 days.

Here is the link to download the purchase requisition template for parts.


Bid Evaluation Templates for Excel

Three new templates have been added for bid evaluation. Use these templates to evaluate the purchase of services, single item (large purchase) and multiple items. The single item template could also be used the summarize a bid evaluation of a single lot or by sub-category. In addition the templates include criteria to evaluate supplier qualitative factors. Factors used are:
  • Compliance with specifications
  • Service rating
  • Quality rating
  • Technical rating
  • Firm price
  • Terms of payment
The templates use Microsoft Excel and can be easily modified to your needs. The templates work with all version of Excel including IOS, Mac and Android. Here is the link to all of the free procurement templates.

Purchasing Template for Bid Waiver Request

An updated procurement template for bid waiver request is now available for download. This template works with Microsoft Excel. Using a bid template documents the reason for bid waiver.

Over time, bid waivers should be tracked by procurement. Template categorizes the reason for bid waiver by department, management and supplier. This information could be helpful in determining areas for further spend analysis.

Here is a screenshot of the bid waiver template:

Here is the link to the bid waiver template for procurement.


Smart Beta for Procurement

smart betaSmart Beta is all the rage in the ETF industry. Could there be a parallel adaptation of Smart Beta strategy for procurement? According to Investopedia:

Smart beta defines a set of investment strategies that emphasize the use of alternative index construction rules to traditional market capitalization based indices. Investment managers that follow a smart beta investment strategy seek to passively follow indices, while also taking into account alternative weighting schemes such as volatility. Smart beta strategies are implemented like a typical index strategies in that the index rules are set and transparent.

The Smart Beta strategy could be applied to MRO sourcing. A manufacturing plant would utilize several distributors per category and measure performance based upon key performance indicators (e.g. on time delivery, price, technical support). The key performance indicators would be transparent to suppliers and automate sourcing each quarter or each year. Buyers would allocate spending starting at 50/50 and moving to 75/25 based upon performance.

Since MRO procurement is very resource intensive - procurement resources could be used more efficiently. Business would be awarded based upon Smart Beta KPI's instead of the typical leverage and consolidate strategy.


Purchase Order for Excel works on IOS

It's nice that Excel works across IOS (Apple's operating system) and Android. Here is a screen shot of the same Excel purchase order template imported into Excel for iPad.

Here is the link to download the purchase order template. Free Purchase Order Template.