Structure: one page, five sections
If your policy doesn't fit on one page, your team won't read it.
- What needs a PO (dollar thresholds in USD, by category)
- Who approves what (cost center owner / director / CFO)
- How to request an exception (and the SLA on it)
- Vendor onboarding minimums (W-9, COI, banking)
- What happens if you don't follow the policy
Thresholds that match your business
A $500 PO threshold makes sense at 100 employees and is friction at 1,000. Index your thresholds to revenue or headcount, not to a number you copied from another company.
- Under 100 employees: PO above $500
- 100–500 employees: PO above $1,000
- 500–2,000 employees: PO above $2,500
Exception handling — the part most policies skip
Every policy needs a fast exception lane. Without one, urgent requests bypass procurement entirely and the policy becomes theatre. Aim for a 24-hour SLA on exception decisions, with the requester, approver and procurement copied on every one.
Change management beats policy elegance
A mediocre policy with strong rollout beats an elegant policy nobody read. Run a 30-minute live walkthrough with each cost center, publish a 2-minute video, and track adoption monthly for the first quarter.