Procurement Glossary
Purchase requisition (BANF): definition, process and significance in Procurement
November 19, 2025
The purchase requisition is a central document in the procurement process that represents the first step in material procurement. It documents the specific requirements of a specialist department and initiates the entire purchasing process. Find out below what a purchase requisition is, how the process works and what strategic importance it has for efficient procurement processes.
Key Facts
- BANF is the abbreviation for purchase requisition and starts every procurement process
- Contains all relevant information such as material specification, quantity and desired delivery date
- Undergoes a structured approval process with defined responsibilities
- Forms the basis for orders, framework agreements and supplier evaluations
- Enables central control and optimization of procurement costs
Contents
What is the Basic Needs Allowance (BANF)?
A purchase requisition is a formal document that specifies a department's need for materials, services or equipment and initiates the purchasing process.
Core elements of a BANF
Each requirement request contains standardized information for clear identification and processing of the requirement:
- Material designation and specification
- Required quantity and unit of measure
- Desired delivery date
- Cost center and budget allocation
- Intended use and technical requirements
BANF vs. purchase order
While the purchase requisition documents the internal requirement, the purchase order represents the binding request to a supplier. The BANF first goes through internal review and approval processes before it is converted into a concrete purchase order.
Importance of BANF in Procurement
Requirement requests create transparency for all procurement projects and enable centralized control of the purchasing strategy. They form the data basis for budget planning, supplier evaluation and key purchasing figures.
Process steps and responsibilities
The BANF process follows a structured procedure with clearly defined responsibilities and approval levels.
Creation and input
The specialist department creates the purchase requisition with all the necessary specifications. Material master data is used or new items are created. The requirement specification must be complete and clearly formulated in order to avoid queries.
Release workflow
After creation, the BANF goes through a multi-stage approval process:
- Technical review by the head of department
- Budget review by Controlling
- Strategic evaluation by Procurement
- Final order release depending on value limits
Implementation and monitoring
After approval, Procurement converts the BANF into concrete procurement measures. This can be a direct order, a framework call-off or a complex sourcing process. The status is continuously monitored and communicated to the requester.
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Important KPIs for purchase requisitions (BANF)
Key figures on BANF performance enable the continuous optimization of the procurement process and the identification of potential for improvement.
Throughput time key figures
The average processing time from BANF creation to ordering shows the process efficiency. Target values are typically 2-5 working days for standard materials. Delays in individual release stages are measured and analyzed separately.
Quality indicators
The proportion of complete BANFs without queries measures the specification quality:
- Completeness rate on first submission (target: >90%)
- Änderungsrate nach Freigabe (Ziel: <5%)
- Cancellation rate due to incorrect specification
- Complaint rate for delivered materials
Cost efficiency metrics
The process costs per BANF and the degree of automation reveal optimization potential. Purchasing indicators such as maverick buying rate and framework contract utilization supplement the BANF-specific metrics. Regular benchmarks with other companies validate the company's own performance.
Process risks and countermeasures for requisitions (BANF)
Inadequate BANF processes can lead to considerable procurement risks and inefficiencies, which must be minimized through appropriate measures.
Incomplete specifications
Poorly described requirements lead to incorrect orders and delays. Standardized input masks and mandatory fields significantly reduce this risk. Training for requesters and regular quality checks improve specification quality in the long term.
Budget overruns
A lack of budget controls can lead to unplanned additional costs:
- Automatic budget check during BANF creation
- Escalation processes in the event of overruns
- Regular budget monitoring and adjustment
- Integration with the escalation process
Delayed release processes
Lengthy approval procedures jeopardize delivery deadlines and project processes. Digital workflows with automatic reminders speed up processing. Substitution rules and value limit adjustments ensure continuous process handling even in the event of absences.
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Practical example
A mechanical engineering company implements a digital BANF system for the procurement of spare parts. The maintenance department uses a mobile app to create a purchase requisition for a defective bearing, including a photo and technical specifications. The system automatically recognizes the preferred supplier from the framework agreement and forwards the BANF for approval. After an automatic budget check and approval by the department manager, an order is triggered within 24 hours.
- Reduction of lead time from 5 to 1 day
- Elimination of specification errors through photo upload
- Automatic supplier selection optimizes conditions
Current developments and effects
Digitalization is fundamentally changing the BANF process and creating new opportunities for automation and increased efficiency.
AI-supported demand recognition
Artificial intelligence analyses historical consumption data and automatically recognizes demand patterns. Predictive analytics enables the proactive creation of demand requirements before critical stock levels are reached. Machine learning continuously optimizes demand forecasts and reduces manual intervention.
Mobile BANF creation
Mobile applications make it possible to request requirements directly at the workplace or place of use. QR code scanners and voice recognition significantly speed up data entry. Cloud-based systems synchronize all information in real time and improve collaboration between departments.
Integrated compliance check
Automated compliance checks check every BANF for adherence to internal guidelines and legal requirements. Intelligent workflows automatically forward requirements to the right approval authorities. Integration with the purchasing manual ensures uniform standards.
Conclusion
The purchase requisition forms the foundation of efficient procurement processes and enables centralized control over all purchasing activities. Digital workflows and AI-supported automation are revolutionizing traditional BANF processes and creating new efficiency potential. Companies that systematically optimize their BANF processes achieve measurable improvements in throughput times, cost efficiency and compliance. The strategic importance of BANF will continue to grow as a result of increasing digitalization and integration into comprehensive procurement systems.
FAQ
What is the difference between BANF and purchase order?
A BANF is an internal requirement request that starts the procurement process. It goes through review and approval processes before it becomes a binding order to a supplier. The BANF documents the requirement, the order is the external request.
Who can create a requirement request?
In principle, all employees with the appropriate authorization can create a BANF. However, approval is based on defined value limits and responsibilities. Smaller amounts can often be approved directly by department heads, while larger amounts require additional approval levels.
How long does it take to process a BANF?
The processing time varies depending on the complexity and value of the request. Standard materials are usually processed within 2-3 working days, while complex procurements can take several weeks. Digital workflows and automated checks speed up the process considerably.
What happens in the event of incorrect purchase requisitions?
Incomplete or incorrect BANFs are returned to the requester for revision. This extends the processing time and can jeopardize delivery deadlines. Standardized input masks and validation rules preventively reduce such errors and improve process quality.
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