Procurement Glossary
Free text ordering: definition, application and control in Procurement
November 19, 2025
A free text order allows buyers to create orders without predefined catalog structures or item master data. This flexible ordering method is often used for one-off or special procurements where standardized catalog items are not sufficient. Find out below what characterizes free text orders, which methods are used and how you can successfully minimize risks.
Key Facts
- Enables orders without predefined article master data or catalog structures
- Particularly suitable for one-off, project-specific or individual procurements
- Requires manual entry of item description, price and supplier details
- Offers maximum flexibility with increased control effort
- Integration into modern e-procurement systems with corresponding approval workflows
Contents
Definition: Free text order
Free text orders are a flexible alternative to catalog-based procurement processes and enable individual order requirements.
Basic properties
A free text order is characterized by the manual entry of all relevant order information without recourse to stored master data. The customer describes the desired product or service in text form and adds all the necessary details such as price, supplier and specifications. This order form offers maximum flexibility for unusual procurement requirements.
Free text order vs. catalog order
In contrast to standardized catalog orders, free text orders do not require predefined article master data. While catalog orders access structured product databases, free text orders enable the spontaneous description of individual requirements. This leads to increased flexibility with a simultaneous increase in manual effort.
Importance in modern Procurement
Free text orders add the necessary flexibility to structured e-procurement processes. They enable the procurement of special products, project-specific services or one-off purchases that cannot be mapped in standardized catalogs.
Methods and procedure for free text orders
The successful implementation of free text orders requires structured processes and clear guidelines for quality assurance.
Structured input processes
Modern e-procurement systems support free text orders through predefined input masks with mandatory fields. These include item description, quantities, prices, supplier details and account assignment information. Standardized input formats reduce sources of error and facilitate downstream processing.
Release workflows
Free text orders go through special approval workflows with increased control mechanisms. These include technical checks of order authorization, budget validation and supplier evaluation. Multi-stage approval processes ensure compliance and cost control with flexible procurement requirements.
Integration into ERP systems
Seamless ERP integration converts approved free text orders into structured order documents. Automated data validation and master data completion optimize further processing. Interfaces to accounting and controlling systems ensure complete traceability.
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Key figures for controlling
Effective management of free text orders requires specific key figures to monitor efficiency, quality and compliance.
Process efficiency metrics
The average processing time of free text orders measures the efficiency of the approval process. Key figures such as first approval rate and query rate show the quality of order entries. The degree of automation and manual post-processing rate evaluate system support and identify optimization potential.
Quality and compliance indicators
Order data completeness rate and input error rate evaluate data quality. Compliance rate measures adherence to purchasing conditions and internal guidelines. Audit success rate and documentation quality show traceability and legal certainty.
Key cost and benefit figures
Average order values and cost deviations from market prices evaluate economic efficiency. Supplier diversity and procurement flexibility measure the strategic benefit. ROI analyses compare the costs and benefits of free text orders with standardized catalog processes.
Risk factors and controls for free text orders
The flexibility of free text orders entails specific risks that must be minimized by suitable control mechanisms.
Data quality and standardization
Manual data entry leads to inconsistent product descriptions and makes spend analysis difficult. Incomplete or incorrect information delays procurement processes and impairs supplier relationships. Standardized input templates and validation rules significantly reduce these risks.
Compliance and approval processes
Circumventing established approval limits and procurement guidelines poses a significant compliance risk. Insufficient documentation makes audits and traceability more difficult. Automated workflow controls and multi-stage approval procedures ensure compliant processing.
Cost control and budget monitoring
A lack of price comparisons and market analyses can lead to excessive procurement costs. Uncontrolled expenditure jeopardizes budget discipline and cost transparency. Integration into spend analysis systems and automatic price validation create the necessary controls.
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Practical example
A mechanical engineering company requires a special sensor component for a customer project that is not available in the standard catalog. The project manager creates a free text order with a detailed technical specification, supplier proposal and cost estimate. After approval by the specialist department and purchasing management, the order is automatically transferred to the ERP system and sent to the supplier.
- Flexible response to project-specific requirements
- Structured approval process ensures cost control
- Seamless integration into existing procurement processes
Current developments and effects
Technological innovations and changing procurement requirements are shaping the further development of free text ordering processes.
AI-supported optimization
Artificial intelligence revolutionizes free text orders through automatic categorization and master data suggestions. Machine learning algorithms analyze order texts and suggest suitable suppliers, prices or product categories. This technology reduces manual effort and improves data quality while maintaining the desired flexibility.
Mobile procurement solutions
Mobile applications enable free text orders directly from the workplace or project location. Integrated camera functions automatically capture product images and technical specifications. Mobile approval processes accelerate approval cycles and increase user acceptance.
Extended compliance requirements
Stricter regulatory requirements lead to extended documentation obligations for free text orders. Automated compliance checks verify supplier certifications, sustainability criteria and legal requirements. Blockchain-based audit trails ensure tamper-proof tracking of all order activities.
Conclusion
Free text orders are an indispensable addition to standardized procurement processes and enable a flexible response to individual requirements. Structured processes, technological support and appropriate controls can combine the benefits of maximum flexibility with the necessary governance. The integration of AI technologies and mobile solutions will further increase efficiency while minimizing risks.
FAQ
What is the difference between free text orders and catalog orders?
Free text orders allow product descriptions to be entered manually without predefined master data, while catalog orders access structured product databases. This offers more flexibility for individual requirements, but requires increased manual effort and tighter controls.
When should free text orders be used?
Free text orders are suitable for one-off procurements, project-specific requirements, special products or services that are not available in standardized catalogs. They supplement structured procurement processes with the necessary flexibility for unusual requirements.
How are risks minimized with free text orders?
Risks are minimized through structured input masks, multi-stage approval workflows, automated validation rules and integration into compliance systems. Standardized templates and AI-supported data validation reduce sources of error and ensure data quality.
What technical requirements are necessary?
Modern e-procurement systems with flexible input masks, workflow engines for approval processes and ERP integration are fundamental. Mobile applications, AI-based data validation and interfaces to compliance systems significantly expand the functionality.
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