Approval Matrix

Types of purchase orders

Gone are the times when directors could unilaterally make decisions about product development and release. To ensure that your products are successful, you must have an approval matrix in place that considers the stakeholders involved in the approval process while maintaining an adequately structured hierarchy.

So what is it?

An approval matrix is a document that defines the roles and responsibilities of those involved in the product development process. It should identify who has the authority to make decisions, who needs to be consulted, and who needs to be informed of decisions.

The matrix should also identify the level of authority required for each decision. For example, some decisions may require the unanimous approval of the team, while others may only require supervisor approval.

And now how to make one!

The first step in creating an approval matrix in the procurement process is to identify the decisions that need to be made. For every kind of decision, you will need to determine who needs to be involved in the decision-making process.

Next, you will need to create a hierarchy of roles and responsibilities. For example, the project manager may have the final say on all decisions, but they may need to consult with the product development team before making a decision.

Finally, you will need to document the decision-making process for making a purchase. For example, you may require that all decisions be made by consensus or that a particular decision requires a vote by the team. This way, all stakeholders will organize and determine the purchase order process.

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Importance, considerations, and benefits

When it comes to hardware procurement, an approval matrix, supported by effective purchasing software, is indispensable to guarantee the acquisition of the appropriate products. Although it might appear to involve a substantial effort, implementing an approval matrix will ultimately save you both time and frustration in the long run.

Creating an approval matrix is important in ensuring that your product development process is efficient and effective. By defining the roles and responsibilities of those involved in the process, you can be sure that all stakeholders are considered in the decision-making process. 

Read more about the ideal purchase order process and approval matrix’s here

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