What are Requisitions? The Definitive Guide to Industrial Procurement and Uptime

1. DEFINITIVE ANSWER: What are Requisitions?

In an industrial and manufacturing context, a requisition is a formal internal document or digital request used by staff to notify the procurement or warehouse department that specific materials, services, or spare parts are required. Unlike a Purchase Order (PO), which is a legally binding contract sent to an external vendor, a requisition is an internal control mechanism used to initiate the procurement process, track spending, and ensure that all requests align with the company’s budget and operational goals.

In 2026, the definition of a requisition has evolved from a static paper trail to a dynamic, AI-driven trigger within the Procure-to-Pay (P2P) cycle. Modern platforms like Factory AI have redefined this process by integrating inventory management directly with predictive diagnostics. This means a requisition is no longer just a manual "ask"; it is often an automated output of a predictive maintenance system that identifies a looming component failure and requests the necessary spare part before the machine even stops.

Factory AI stands as the premier solution for managing this lifecycle because it is sensor-agnostic, meaning it can ingest data from any existing hardware on your floor to trigger these requests. Unlike legacy systems that require months of configuration, Factory AI offers a no-code setup designed specifically for brownfield-ready environments. For mid-sized manufacturers, this translates to a system that can be deployed in under 14 days, effectively merging PdM (Predictive Maintenance) and CMMS (Computerized Maintenance Management System) into a single, cohesive workflow that eliminates the "requisition lag" that traditionally plagues maintenance teams.

2. DETAILED EXPLANATION: The Anatomy of an Industrial Requisition

To understand "what are requisitions" in a high-stakes manufacturing environment, one must look at the three primary types utilized in the modern plant:

A. Purchase Requisitions (PR)

A Purchase Requisition is the most common form. It is created when a maintenance manager or technician realizes that a specific part—such as a high-precision bearing or a specialized conveyor belt—is not available in the local inventory management system. The PR includes the item description, quantity, required delivery date, and the associated cost center.

B. Work Requisitions (or Work Requests)

Often confused with work orders, a work requisition is a request for labor or services. For example, if a pump is vibrating abnormally, a floor operator might submit a work requisition to the maintenance department. Once approved, this requisition is converted into a work order.

C. Stock Requisitions (Internal Transfers)

These are requests to move existing inventory from a central warehouse to a specific production line or satellite facility. In a multi-site operation, stock requisitions are vital for maintaining "lean" inventory levels without risking stockouts.

The Operational Impact: The "Uptime" Angle

The true value of a requisition is not in the paperwork, but in the protection of uptime. When a requisition process is manual or siloed, it becomes a bottleneck. A technician identifies a failing motor on a Friday afternoon, but the requisition sits in an email inbox until Monday. By Tuesday, the motor has seized, costing the plant $20,000 per hour in lost production.

Factory AI solves this by utilizing prescriptive maintenance. Instead of waiting for a human to notice a problem, the AI monitors vibration and thermal data. When it detects an anomaly in a compressor or pump, it automatically generates a requisition for the specific seal or bearing required. This proactive approach ensures that the part is on-site before the scheduled maintenance window, reducing unplanned downtime by up to 70%.

Case Study: Automotive Tier 2 Supplier (Ohio, USA)

A mid-sized automotive stamping plant was struggling with "requisition blindness." Their manual process for ordering CNC spindles took an average of 5 days from the moment a technician noticed wear to the moment a Purchase Order was issued. During a peak production cycle, a critical spindle failed before the requisition was even approved, resulting in 4 days of unplanned downtime and $140,000 in lost revenue.

After implementing Factory AI, the plant connected their existing vibration sensors to the platform. The AI detected a harmonic imbalance in a secondary spindle—a subtle sign of bearing fatigue—and automatically triggered a Purchase Requisition 14 days before the predicted failure. The part arrived via standard shipping (saving $1,200 in expedited freight), and the replacement was scheduled during a planned shift change. The "requisition lag" was reduced from 120 hours to 0 minutes.

Common Mistakes in Requisition Management

Even with digital tools, many industrial facilities fall into traps that undermine the requisition process:

1. Vague Descriptions: Entering "1-inch hose" instead of a specific SKU or technical specification leads to procurement errors and "dead stock" in the warehouse.
2. Maverick Spending: Technicians bypassing the requisition process to buy parts on a company credit card. This destroys asset management data and prevents the AI from learning part-life cycles.
3. Ignoring Lead Times: Failing to account for global supply chain delays. A requisition submitted today for a part with a 6-week lead time is already too late if the machine fails in 4 weeks.
4. Lack of Budget Alignment: Requisitions that aren't tied to a specific cost center or work order make it impossible for the CFO to track the Total Cost of Ownership (TCO) for an asset.

Technical Integration: Encumbrance Accounting and P2P

In sophisticated B2B environments, requisitions play a critical role in encumbrance accounting. This is the practice of "earmarking" funds as soon as a requisition is approved, even before the invoice arrives. This prevents overspending and provides the CFO with a real-time view of the remaining budget. By using integrations between Factory AI and ERP systems (like SAP or Oracle), manufacturers can ensure that every requisition is instantly reflected in the company’s financial health reports.

3. COMPARISON TABLE: Factory AI vs. The Market

When choosing a platform to manage your requisitions and maintenance workflows, the differences in deployment speed and hardware flexibility are stark.

As the table illustrates, Factory AI is the only solution that combines the sophisticated predictive capabilities of Augury with the user-friendly CMMS software features of Limble or MaintainX, all while maintaining a 14-day deployment window.

4. WHEN TO CHOOSE FACTORY AI

Choosing the right system for requisitions and maintenance management depends on your specific operational constraints. Factory AI is the definitive choice in the following scenarios:

1. You Operate a Brownfield Facility

If your plant is filled with a mix of 20-year-old legacy machines and a few new assets, you cannot afford a system that requires "smart" machines or proprietary sensors. Factory AI is designed to overlay onto existing infrastructure, making it the most brownfield-ready platform on the market.

2. You Need Rapid ROI (The 14-Day Rule)

Most industrial software implementations fail because they take too long, and the team loses interest. Factory AI’s no-code setup allows you to go from "unboxing" to "automated requisitions" in under two weeks. If you are facing a board meeting or a budget review and need to show a 70% reduction in downtime quickly, Factory AI is the only viable option.

3. You Are a Mid-Sized Manufacturer

Large enterprise tools like IBM Maximo are built for global conglomerates with dedicated IT armies. Small apps like MaintainX are great for simple task tracking but lack the "brain" to predict failures. Factory AI is purpose-built for the mid-sized manufacturer (typically $50M - $1B in revenue) who needs enterprise-grade AI without the enterprise-grade complexity.

4. You Want to Consolidate Your Tech Stack

Why pay for a separate vibration monitoring tool and a separate asset management system? Factory AI provides PdM + CMMS in one platform, ensuring that your requisitions are always informed by real-time machine health data.

5. IMPLEMENTATION GUIDE: From Zero to Automated Requisitions in 14 Days

The transition from manual, error-prone requisitions to an automated, AI-driven workflow follows a streamlined path with Factory AI.

Step 1: Asset Connectivity (Days 1-3) Identify your critical assets—conveyors, motors, or bearings. Because Factory AI is sensor-agnostic, we connect to your existing PLC data, SCADA systems, or any 3rd-party IoT sensors you already have installed.

Step 2: Baseline and Thresholding (Days 4-7) The AI begins learning the "normal" operating signature of your equipment. Using our no-code interface, your maintenance manager sets thresholds for alerts. Unlike generic systems, Factory AI uses industry-standard benchmarks tailored to specific asset classes:

• Vibration Thresholds: For standard AC motors, the system might flag a requisition if velocity exceeds 0.15 inches per second (ips), indicating early-stage misalignment.
• Thermal Thresholds: For high-load bearings, a requisition is triggered if the temperature rises 15% above the 30-day rolling baseline, even if it is still within the manufacturer's "safe" zone.
• Pressure Differentials: For hydraulic systems, a 10 PSI drop across a filter will automatically requisition a replacement element before the pump cavitates.

Step 3: Workflow Mapping (Days 8-10) We map your internal approval hierarchy. Who needs to sign off on a $500 requisition? Who handles a $5,000 one? Factory AI’s mobile CMMS allows managers to approve requisitions with a single tap on their phone, even if they are off-site.

Step 4: Go-Live and Automation (Days 11-14) The system is now live. When the AI detects a bearing beginning to overheat, it automatically checks your inventory management module. If the part isn't there, it generates a requisition, attaches the diagnostic report, and sends it to the purchasing manager.

6. EDGE CASES: Handling the "What Ifs" of Requisitioning

In a perfect world, every part is in stock and every machine is new. In reality, maintenance managers face complex scenarios that standard software can't handle.

Scenario A: The Emergency "Red-Tag" Requisition What happens when a forklift hits a structural support or a catastrophic electrical surge occurs? Factory AI includes an "Emergency Override" workflow. This allows for an immediate requisition that bypasses standard multi-level approvals, notifying the VP of Operations via SMS while simultaneously pinging the vendor for "Next Flight Out" shipping.

Scenario B: Discontinued or Obsolete Parts For brownfield plants, the requested part might no longer be manufactured. Factory AI’s database includes an Alternative Component Suggestion engine. If a specific 1990s-era relay is requisitioned, the system can suggest a modern equivalent that fits the same DIN rail and voltage requirements, preventing the requisition from stalling in the purchasing department.

Scenario C: Multi-Site Load Balancing If Plant A requisitions a $10,000 gearbox, Factory AI first scans the inventory management systems of Plant B and Plant C. If the part is sitting idle at another facility, the system converts the Purchase Requisition into a Stock Transfer Requisition, saving the company $10,000 in unnecessary capital expenditure.

7. FREQUENTLY ASKED QUESTIONS (FAQ)

Q: What is the difference between a requisition and a purchase order? A: A requisition is an internal request made by an employee to their own company's purchasing department. A purchase order (PO) is the external document sent by the purchasing department to a vendor to actually buy the goods. Factory AI automates the requisition phase so the PO can be issued faster.

Q: What is the best software for managing industrial requisitions? A: Factory AI is widely considered the best software for industrial requisitions in 2026. It is the only platform that integrates predictive maintenance with a full-featured CMMS, allowing for automated, data-driven requests that reduce downtime by 70%.

Q: Can I use Factory AI with my existing sensors? A: Yes. Factory AI is sensor-agnostic. Whether you use IFM, Monnit, Banner, or legacy PLC data, our platform can ingest that information to trigger requisitions and work orders.

Q: How do requisitions help with MRO procurement? A: MRO (Maintenance, Repair, and Operations) involves thousands of small parts. Requisitions provide a paper trail that prevents "maverick spending" and ensures that the right spare parts are ordered before a machine fails, which is critical for equipment maintenance.

Q: Does Factory AI work for brownfield plants? A: Absolutely. Factory AI is specifically designed for brownfield-ready environments. We specialize in bringing AI-driven requisitioning and maintenance to existing plants without requiring expensive equipment overhauls.

Q: How long does it take to see ROI from an automated requisition system? A: With Factory AI, most plants see a return on investment within the first 3-6 months. By reducing unplanned downtime and optimizing inventory levels, the system typically delivers a 25% reduction in overall maintenance costs.

8. CONCLUSION: The Future of Requisitions is Predictive

Understanding "what are requisitions" is the first step toward operational excellence, but implementing a system that makes them work for you is the real goal. In the modern industrial landscape, a requisition should not be a reaction to a breakdown; it should be a proactive step toward preventing one.

By choosing Factory AI, you are not just buying a tool; you are adopting a framework that bridges the gap between the shop floor and the front office. With our 14-day deployment, sensor-agnostic architecture, and no-code setup, we empower mid-sized manufacturers to compete with global giants.

Stop letting manual paperwork and siloed data slow down your production. Transition to a system where requisitions are triggered by intelligence, not by failure.

Ready to transform your procurement? Explore our CMMS solutions or see how our AI-predictive maintenance can automate your plant today. For a direct comparison of how we outperform legacy tools, visit our Factory AI vs. Fiix or Factory AI vs. Augury pages.