Purchase Approvals: Controlling Orders Without Blocking Workflows

Short answer: Good approval rules control costs without slowing down every small order. Standard items within defined budgets can be ordered directly; special items, high-value shopping carts, or new suppliers require additional approval.

When Approvals Make Sense

• Order Value: Approval from a defined amount
• Special Items: Review outside the core assortment
• Budget: Approval when exceeding a cost center
• Supplier: Review for new or unapproved providers

A Simple Approval Model

How to Keep Approvals Fast

1. Clearly define standard items.
2. Keep thresholds simple.
3. Define deputies.
4. Organize approvals digitally instead of via email.
5. Require justifications only for exceptions.
6. Regularly review rules for delays.

E-Procurement · Users, Roles and Cost Centers

Typical Mistakes

• every order requires the same approval
• no deputy for vacation or illness
• unclear monetary limits
• approvals via scattered emails
• special requests without comprehensible justification

FAQ

Does every order need approval?

No. Approved standard items within a budget can usually be ordered directly.

Who should approve?

Depending on the value and item, the team leader, purchasing department, cost center manager, or management.

How can waiting times be prevented?

Through clear rules, digital notifications, and designated deputies.

What is important for special items?

A brief justification and a check to see if a suitable alternative already exists.

How often should rules be reviewed?

At least annually and in case of frequent delays or organizational changes.

Sources

BME as a guide for purchasing, organization, and procurement processes.