Requisition: Request for Acquisition of Materials

A requisition is a formal request issued by a department to acquire necessary materials not regularly stocked, also known as a purchase or stock requisition. It is essential in ensuring prompt and organized material supply within organizations.

A requisition is a formalized request, typically issued by a department within an organization, seeking the acquisition of materials or supplies that are not regularly maintained in its own stock. This process ensures that necessary materials are procured efficiently and timely, supporting uninterrupted operations.

Understanding Requisition

Requisitions play a crucial role in organizational logistics and supply chain management. They can be categorized into two main types:

Purchase Requisition

This is a document created by a user department to request the purchase of goods or services that are not currently stocked. It provides details such as the type and quantity of materials needed, the purpose, and the justification.

Stock Requisition

In contrast to a purchase requisition, a stock requisition is used to request items that are regularly held in the company’s inventory. This internal document is utilized to manage stock levels within departments.

Components of a Requisition

A requisition typically includes several key elements:

• Date of Request
• Requesting Department/Individual
• Description of Materials or Services Required
• Justification or Purpose
• Quantity Needed
• Preferred Vendor (if any)
• Cost Estimates
• Approval Signatures

Example

For instance, a lab technician may issue a requisition to acquire specialized chemicals for an experiment not available in the department’s regular inventory. The document would outline the specifics of the chemicals, reasons for the request, and the required quantity.

Historical Context

The concept of requisitioning goods dates back to antiquity, where formalized requests ensured organized allocation and distribution of resources in large administrations. Over time, the practice became an integral part of modern business operations, spanning across various sectors and industries.

Applicability in Different Fields

• Business and Management: Ensures operational efficiency by maintaining required materials.
• Healthcare: Important for timely procurement of medical supplies and equipment.
• Manufacturing: Critical for managing production materials and components.

Comparison with Related Terms

• Purchase Order: This is an official order issued by a buyer to a seller, indicating the purchase agreement.
• Supply Request: Often less formal, it refers to the need for regular office or operational supplies.

FAQs

What is the difference between a requisition and a purchase order?

A requisition is an internal request for materials, whereas a purchase order is a formal agreement and order placed with a vendor.

Who is responsible for approving requisitions?

Approval responsibility typically lies with departmental managers or financial officers to ensure the request is justified and funds are available.

Why are requisitions important in large organizations?

They provide a systematic approach to material procurement, ensuring accountability and efficient use of resources.

References

• “Supply Chain Management Basics” by John Brown, 2021.
• “Business Logistics and Procurement”, Logan Marshall, 2019.

Summary

Requisitions are essential tools in business logistics and supply chain management. They ensure that departments can acquire necessary materials not held in regular stock, supporting smooth operation and resource management. Understanding the process, types, and importance of requisitions can enhance organizational efficiency and accountability.