The Organizational Purchasing Process and Internal Purchase Requests

General Principles of Organizational Purchasing

An organization cannot function effectively without engaging in purchasing activities. To sustain its operations and production capabilities, an organization must acquire various assets from its suppliers. These assets are categorized primarily into goods—which include raw materials ($mati\grave{e}res\,premi\grave{e}res$), supplies ($fournitures$), and merchandise ($marchandises$)—and services. The acquisition of these resources is a prerequisite for the organization's ability to produce its own output.

The purchasing process is formally defined as a sequence of mental operations that guide a client through the stages of selection and the final acquisition of a product. This cognitive and administrative journey is characterized by several distinct stages and varies according to the nature of the purchase and the consumer's behavior.

The Five Main Stages of the Purchasing Process

The organizational purchasing process is structured into a logical progression that begins with an internal realization and ends with an evaluation of the transaction's success. While some models highlight four main steps, a comprehensive view includes five critical phases.

The first stage is the Recognition of Need ($La\,reconnaissance\,du\,besoin$). During this phase, the consumer or the department within the organization must become consciously aware of a necessity for an acquisition. It is the trigger for the entire process.

The second stage is the Search for Solutions ($La\,recherche\,de\,solutions$). Once the need is established, the individual or entity searches for products or services that are capable of satisfying that specific need.

The third stage is the Comparison of Options ($La\,comparaison\,des\,options$). This involves evaluating the different solutions identified during the search phase. This step is often referred to as Supplier Sourcing ($SOURCING\,FOURNISSEURS$), where various vendors and their offerings are weighed against one another.

The fourth stage is Decision Making ($La\,prise\,de\,d\acute{e}cision$). The consumer chooses from the retained products based on specific criteria. After the choice is made, the actual purchase is executed.

The fifth and final stage is the Post-Purchase Evaluation ($L'\acute{e}valuation\,post-achat$). Following the transaction, the client provides feedback ($FEED-BACK$) on the purchase to determine if the product or service met the initial requirements and expectations.

Categorization of Purchase Types

Purchases are not uniform; they are categorized based on the psychological state and behavior of the buyer at the time of the transaction. There are three primary types identified in the organizational context.

Routine or Automatic Purchases ($Achats\,routiniers\,ou\,automatiques$) occur when the consumer buys out of habit. These are typically low-involvement transactions for items that are needed regularly and require little to no new decision-making effort.

Limited or Impulsive Purchases ($Achats\,limit\acute{e}s\,ou\,impulsifs$) take place when the consumer is seduced by a product in the moment. These are less planned than routine purchases and are often driven by immediate attraction or short-term incentives.

Reflected or Premeditated Purchases ($Achats\,r\acute{e}fl\acute{e}chis\,ou\,pr\acute{e}m\acute{e}dit\acute{e}s$) represent the highest level of involvement. In this scenario, the consumer actively seeks information, thinks critically about the options, and performs detailed comparisons before arriving at a decision.

The Internal Purchase Request (Demande d'Achat)

The formal beginning of the purchasing process within an organization (Stage $1$: Recognition of Need) is marked by the drafting of a Purchase Request, also known as a Supply Request ($Demande\,d'approvisionnement$). This is a formal, written internal document issued by an employee to signal the intent to purchase one or more goods or services.

This document serves as the official record of the need and can be produced in either paper format or electronically via the company's internal intranet network. Because this document initiates the financial and logistical chain, it must be drafted with precision and rigor.

Content and Constraints of a Purchase Request

A Purchase Request must contain detailed information to ensure the purchasing department can act effectively. The content is generally divided into two categories: the expression of needs and the external constraints.

Regarding the Needs ($LES\,BESOINS$), the document must specify the types of goods or services required, their specific characteristics, and the exact quantities to be ordered. Regarding the Constraints ($LES\,CONTRAINTES$), the document must account for the fabrication lead time (the availability of the good or service), the purchase price, and the geographic location of the supplier. For instance, an organization might have a policy favoring local products. Additionally, it must list the payment terms ($conditions\,de\,r\grave{e}glement$) and the required delivery deadline.

Management and Routing of the Purchase Request

Once drafted, the purchase request is typically sent to the Purchasing or Supplies Department ($service\,Achats\,ou\,Approvisionnements$). In large enterprises, this department will then submit the request to the financial service for budget approval. If an organization does not have a dedicated purchasing function, these commercial activities may be handled by an employee within the commercial or administrative departments.

Purchase requests are classified into two types based on their frequency. Habitual ($HABITUELLE$) requests are recurrent and concern followed articles that are bought regularly. Punctual ($PONCTUELLE$) requests have an exceptional character and concern new or non-followed articles that are not part of the standard inventory.

Practical Application: Case Study of Purchase Request No. 231

An example of a formal purchase request (Maquette) is provided by the Fabrication Department. Purchase Request No. $231$, dated $27/02/N$, was issued for the following reasons and specifications.

The reason for the request was to fulfill $GUCCI$ order No. $4521$ dated January $27$. The characteristics of the items to be ordered involve nubuck leather in four different colors: $50$ skins of blue nubuck leather, $40$ skins of white nubuck leather, $40$ skins of yellow nubuck leather, and $50$ skins of red nubuck leather. The requested delivery deadline is set for $1$ month at the latest. This specific request was signed and validated ($VALID\acute{E}E$) by the Purchasing Manager, Mme LOPEZ.

Decision Paths and Supplier Selection

Upon the acceptance of a purchase request, the organization follows one of two primary paths based on whether the supplier is already established. For certain categories of followed purchases where a habitual or occasional supplier exists (Defined Supplier), the company can proceed directly to the placement of the order ($PASSATION\,DE\,COMMANDE$).

In cases involving non-followed purchases or when the organization does not have a current supplier for a specific item (Non-Defined Supplier), the organization must enter the phase of searching for new suppliers ($RECHERCHE\,DE\,NOUVEAUX\,FOURNISSEURS$). It is important to note that even for followed products with existing suppliers, an organization is never barred from launching a search for new suppliers to potentially find better terms or solutions.