Overview

A Bill of Material (BoM) Purchase Requisition is a digital request specifying the parts required to be purchased from the Bill of Materials. The BoM is a comprehensive list of raw materials, components, assemblies, subassemblies, parts, and quantities needed to construct a project.

In the context of a BoM, the Purchase Requisition generates a request to procure the parts listed. The production or engineering department typically submits the requisition to the procurement team, who then use it to order the necessary items from suppliers.

Key Components of a BoM Purchase Requisition

• Item Description: Detailed description of each component or material required.
• Quantity: The number of items needed, as specified in the BOM.
• Specifications: Any technical details or specifications that must be met by the materials or components.
• Supplier Information: Preferred suppliers or vendors, if any, or notes on where the items should be sourced.
• Lead Time: The required delivery time to meet production schedules.
• Project Information: Details about the specific project or product for which the requisition is made.

Usefulness in the Procurement Process

A BOM Purchase Requisition is highly useful in the procurement process for several reasons:

• Accuracy in Ordering
  The BOM Purchase Requisition ensures that the exact materials and quantities required for production are ordered. This minimizes the risk of ordering incorrect items or quantities, which can lead to production delays and increased costs.
• Efficiency
  Procurement can handle the sourcing process more efficiently by consolidating all the required materials into a single requisition. It reduces the need for multiple orders and helps negotiate better terms with suppliers for bulk purchases.
• Cost Control
  Procurement can better manage the budget with a clear understanding of all the materials needed. They can explore cost-saving opportunities, such as bulk buying, choosing alternate suppliers, or negotiating discounts.
• Supply Chain Coordination
  The requisition helps align the procurement activities with the production schedule. It ensures that materials arrive on time and that production runs smoothly without interruptions due to material shortages.
• Traceability and Accountability
  The BoM Purchase Requisition provides a clear audit trail, documenting what was requested, from whom, and when.
• Collaboration
  The BoM Purchase Requisition fosters better communication between the engineering/production teams and the procurement department. It ensures that both teams are aligned on what is needed, reducing the chances of misunderstandings.