Many companies turn to decentralized spending to enable their employees to make independent purchasing decisions and access resources without getting caught up in approval chains and reporting at every step.

What follows, however, is higher compliance breaches, budget overruns, and an increased burden on procurement teams to sift through scattered data and manage procurement effectively.

On the other hand, a defined procurement workflow, where each expense is subject to approvals before even a purchase order is issued, causes delays, an endless loop of email and Slack threads, and a lack of visibility for everyone involved.

However, this doesn’t have to be the case.

It’s possible to introduce necessary controls without slowing down the process or taking away autonomy from employees.

In this blog post, we’ll explore the purchase requisition process, a system designed to integrate compliance checks and approvals seamlessly while ensuring employees get the resources they need on time.

6-Step Purchase Requisition Process

At its core, the purchase requisition process is about capturing and evaluating employee needs against company policies and budgets to ensure that only necessary items are purchased. 

However, this quickly becomes chaotic as teams are fragmented and data is scattered. Without a unified tool, teams are left relying on Slack and email threads for clarifications, and even when teams come together, data is missing.

What you need is a process that not only captures requests but also provides a collaborative environment for teams to track progress in real time. When you combine this with automated rules and checks that validate requests against company policies, procurement saves valuable time and avoids unnecessary delays.

“We haven’t had a single transaction that when it’s received and gone through the approval process that we’ve said, 'Oh my god, that shouldn’t have been spent.”

~ Christopher Anthony, Global Business Controller, Platinum Heritage

Here’s a 6-step purchase requisition process you can implement with Pluto to streamline and improve your procurement process.

1. Fill out the Purchase Request Form

The first step in the process is for the employee to complete a purchase request form, specifying the resources they need—whether it’s office supplies, equipment, or services. This form includes detailed descriptions, quantities, and any relevant specifications to ensure clarity in what is being requested.

With Pluto, employees have access to a centralized platform to raise purchase requests. 

The forms can be customized based on your organization's needs—such as specific fields for departments, urgency, or vendor preferences. This eliminates scattered communication and ensures that requests are recorded in one place for easy tracking.

2. Obtain Approvals From Managers

Once the request form is completed, it must be submitted for managerial approval. 

Approvals are typically required at this stage to ensure that the purchase aligns with company objectives and priorities. Managers review the request to assess its necessity, compliance with departmental goals, and overall relevance to the team's needs.

With Pluto, approvals are no longer stuck in email chains or Slack messages. You can create parallel or sequential workflows tailored to the department, purchase amount, or type of request. 

Managers are instantly notified and can approve, reject, or comment directly from the Pluto app—whether on the web or mobile. This speeds up the process and reduces bottlenecks.

3. Validate Internal Policies

After the manager approves it, the purchase request is reviewed against internal policies. This step ensures that the requested resources meet company guidelines, such as procurement processes, vendor preferences, and any compliance regulations. This validation helps avoid unauthorized or non-compliant purchases.

With Pluto, policy checks are automated. The system syncs with your ERP to validate vendor lists, flagging unapproved suppliers or non-compliant purchases instantly. 

Built-in rules enforce company policies without requiring manual intervention, saving time for procurement teams.

4. Check Inventory

Next, the procurement team checks the inventory to determine whether the requested resources are available. If the requested items are already in stock, the resources are sent directly, eliminating unnecessary purchases and ensuring better resource utilization.

5. Assess Alignment With the Budget

The request is evaluated before purchasing to ensure it aligns with the allocated budget.

The procurement team checks if the cost of the requested items fits within the approved budget, ensuring that spending remains within financial constraints. If the request exceeds the budget, further adjustments or approvals are required.

With Pluto, budget validations are automated. The system tracks spending limits and provides real-time visibility into budgets, flagging any discrepancies immediately. This prevents overspending and ensures financial accountability at every stage.

6. Create the Purchase Order

Once all approvals and validations are completed, the purchase requisition is converted into a purchase order. 

The purchase order (PO) is a formal document sent to the vendor detailing the items or services to be delivered, agreed-upon prices, and other transaction terms. This step finalizes the purchase process and initiates the delivery of goods or services.

With Pluto, purchase requisitions can be converted into POs with a single click. These POs are automatically synced with your ERP system, keeping records up to date and eliminating manual data entry. 

Pluto also tracks every change in the process through a detailed audit trail, ensuring complete visibility and accountability across teams.

Streamline Your Procurement Process Without Sacrificing Efficiency

Procurement doesn’t have to be a choice between control and efficiency. 

With Pluto, you get the best of both—a system that keeps you in control while letting your teams move fast.

By centralizing requests, automating compliance checks, and syncing seamlessly with your ERP, Pluto eliminates the chaos of fragmented data and disconnected teams. Approvals happen quicker, requests stay visible, and everyone stays aligned—all without drowning employees in unnecessary delays or processes.

With custom workflows, audit trails, and real-time collaboration, Pluto gives you the visibility and control you need without compromising the speed and autonomy employees expect.

If you want to bring order to your procurement process without the bottlenecks, book a demo to see how Pluto provides control and efficiency.