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Budgeted versus Unexpected Requirements

It is important to remember that not all requests for supplies are part of the planned replenishment process. Other requirements such as services, maintenance repair and operating (MRO) supplies, and capital expenditures may also come up separately.

The process of generating and approving a requisition depends on the policies of the company. Approval may be required before processing the requisition or after understanding the price and terms, but before issuing an external purchase order. Some policies may require approval for certain types of goods, such as hazardous materials, while others may stipulate that specific suppliers must participate in a competitive bid process through a request for quotation (RFQ), rather than a less formal negotiation.

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