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Demand notification: Definition & important aspects for buyers
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Demand reporting in a nutshell:
A purchase requisition is the formal notification from a specialist department to Purchasing of the materials, services or capital goods required. It enables Purchasing to plan procurement in a structured manner and supply internal customers in good time, taking economic aspects into account.
Example: The production department notifies the purchasing department via the ERP system of a requirement for 1,000 special screws with a lead time of 6 weeks and an estimated value of EUR 2,500, allowing the purchasing department to initiate the procurement process in good time.
Contents
Notification of requirements: basics and processes
What is a requirement notification?
A purchase requisition is an internal document or electronic process that employees use to officially communicate the need for goods, services or materials within a company to the purchasing department. It is the first step in the procurement process and serves to identify the specific requirement and inform the purchasing department of what is needed, in what quantity and by when.
Core elements of a requirement notification
Importance of the purchase requisition in the purchasing process
The purchase requisition is essential for an efficient and transparent purchasing process. It enables the purchasing department to record requirements centrally, obtain quotations and plan orders strategically. Clear requirement notifications make it possible to avoid duplicate orders, take advantage of quantity discounts and meet delivery deadlines.
Implementation of the requirement report in the company
A requisition is created when employees require materials or services. It contains all the relevant information to inform the purchasing department of the exact requirements. This allows the purchasing process to be started efficiently and the required goods to be procured in good time.
Practical example
Example: Request for spare parts in the production department
1. the production department realizes that an important machine component is running low.
2. a technician fills out an electronic demand report:
- Description: ZM-150 gear module for XZ-200 machine
- Quantity: 20 pieces
- Delivery date: Within the next 2 weeks
- Cost center: Production (KST 1100)
- Priority: High, as production downtime is imminent
3. the demand report is automatically forwarded to the production manager for approval.
4. after approval, the purchasing department receives the notification and begins procurement.
5. the purchasing department contacts suppliers, compares offers and places the order.
6. spare parts are delivered on time, thus avoiding production downtime.
Evaluation and strategic findings on the demand report
✓ Critical success factors
→ Process integration: Seamless integration of the requirement report into existing ERP and procurement systems
→ Standardization: Uniform forms and workflows for quality assurance of reports
→ User-friendliness: Intuitive input screens and clear mandatory fields for complete reports
⚠ Challenges
→ Data quality: incomplete or inaccurate information delays the procurement process
→ Predictability: Short-term demand reports make strategic purchasing decisions more difficult
→ Compliance: Ensuring adherence to approval processes and budget limits
Future trends:
"The digital transformation will increasingly automate and proactively shape demand reports."
→ AI-based demand forecasts
→ Automatic order triggering when stock levels fall below defined minimum levels
→ Mobile recording through smart devices
→ Integration of predictive maintenance data
◆ Strategic implications
→ Digitalization: investment in modern demand reporting systems for process optimization
→ Training: Continuous employee qualification for high-quality reports
→ Analytics: using demand data for strategic purchasing decisions
Conclusion on the notification of requirements
Requirement notifications are an indispensable tool for an efficient and transparent procurement process. They not only structure the purchasing process, but also enable strategic planning and cost control. Success depends largely on digital integration, standardized processes and the quality of the notifications. With increasing digitalization and AI support, purchase requisitions will contribute even more effectively to the optimization of company resources.
