Growing SMBs often ask for requisitions when what they really need is controlled internal ordering.
The distinction matters. A requisition is a request to buy. A purchase order is a committed order. In enterprise procurement, those are separate objects with approval chains, budgets, policies, and AP controls.
At SMB scale, the workflow can often be simpler: locations create internal purchase orders to a warehouse or central buyer, and the central buyer decides what gets fulfilled from stock versus purchased from outside suppliers.
That gives control without forcing the team into an enterprise procurement process.
Quick answer
Use formal requisitions when the business needs spend approval before vendor selection: services, equipment, office spend, repairs, software, or policy-controlled purchases. Use internal purchase orders when the business is mostly coordinating inventory between locations, a warehouse, a central buyer, and outside suppliers.
For SMBs, internal POs often work better for replenishment because they keep branch demand, warehouse fulfillment, supplier POs, receiving, and accounting allocation connected without forcing every request through enterprise requisition software.
The classic requisition workflow
A formal requisition workflow looks like this:
- Employee requests goods or services.
- Manager approves request.
- Procurement converts requisition into supplier PO.
- Supplier confirms PO.