What is a  Free-text Order?

A Free-text Order (Freitextbestellung in German) refers to a procurement request where product or service details are entered manually by the requester, rather than selected from a pre-approved catalog.

These orders are typically used for C-items (low-value, non-critical goods), but may occasionally apply to A- or B-items if no catalog or material master data exists.

How Free-text Orders Work

In a free-text order, the requester manually inputs:

• Product or service name and description
• Quantity and unit
• Desired delivery date
• Estimated price
• (Optional) preferred supplier
• Cost center or project allocation

The order then goes through internal approval and is processed by the procurement team – often requiring clarification or corrections due to missing data.

Challenges of Free-text Orders

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Studies show that free-text orders can be up to 5× more expensive to process than catalog-based orders.

When Are Free-text Orders Used?

• For items not (yet) available in internal catalogs
• For project-based, ad hoc or customized requirements
• In decentralized environments with limited catalog coverage
• During urgent or one-time purchases

Free-text vs. Catalog-based Orders

Reducing Free-text Orders: Best Practices

• Expand and maintain product catalogs (CIF, PunchOut)
• Introduce guided buying tools to nudge compliant behavior
• Convert recurring free-text items into catalog entries
• Monitor usage and flag high-cost or frequent free-text orders
• Set approval thresholds specifically for free-text submissions

Mercanis enables procurement teams to analyze free-text usage and turn unstructured requests into catalog-based workflows.

Conclusion: Free-text Orders = Flexibility at a Cost

While Free-text Orders provide flexibility for non-standard or infrequent purchases, they significantly increase process costs and compliance risks. Companies should strive to minimize their use through catalog management, user guidance, and automation.