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Nov 16, 2020

Implementing a Requisition Process with NetSuite

by Dor Beglaubter

requisition process with NetSuite

It’s easily understood why businesses aim to deploy a purchase order (PO) process on NetSuite. Doing so offers a number of benefits, including helping them achieve visibility, increase accountability, improve budget control and compliance, gain early involvement from the procurement team in purchasing activities, and reduce the friction that arises from the reliance on multiple communication channels and siloed systems. 

Unfortunately, when businesses attempt to launch a NetSuite PO process without addressing purchase requests (or requisition), many of these benefits are minimized, or they don’t happen at all. 

How purchase requisitions can complement the NetSuite PO processes

If you’re currently running a purchase order process on NetSuite, you may have already encountered some or all of these issues:

  1. The PO is just a “rubber stamp” as requesters manage actual approval processes on emails, instant messages and Slack. 
  2. The order of things is flipped, because opening a PO on NetSuite requires having a vendor onboarded—but vendors need to be onboarded after the need is approved in a proper approval flow. 
  3. Mistakes happen often because opening a PO on NetSuite tends to be a technical task with a high likelihood of error. 

To alleviate these issues, modern organizations are adopting a requisition process alongside their NetSuite PO program. As a result, they’re achieving: 

  1. Improved, centralized collaboration involving all stakeholders, without siloed emails and spreadsheets.
  2. Transparency for requesters and approvers, including those who don’t have access to NetSuite.
  3. Smarter sourcing and vendor selection that happens at the right time in the process, and helps cut costs.

Reduction of risk and errors by keeping non-finance employees outside of NetSuite.

How a Requisition Process Complements NetSuite

When moving the approval process to the requisition stage, the result of an approved requisition is the generation of a PO in NetSuite. For many companies, this means there is no need for an additional PO approval process, keeping the PO handling to finance and procurement leaders. 

When optimizing purchase requests, it’s important to ensure that requesters can submit a new vendor request in parallel to the purchase request, since these always go hand-in-hand. This alleviates the frustration requesters often encounter when these processes take place on separate systems to which they may have limited or no access.

There are many requisition systems that can complement NetSuite on the market today. Some, like Approve.com, are purpose built. Others are generic workflow tools that can be adjusted to support the requisition process. Whichever route you choose, make sure the requisition system is easy to use (a beautiful interface goes a long way!), lightning fast (unlike most financial systems) and well integrated, so that approved requests automatically generate a purchase order in NetSuite.

Interested in implementing a spend management system that simplifies and streamlines your business’s existing process? Check out Approve.com and request a free demo today!

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