What is Procurement Software?

Introduction

Procurement software assists enterprises to automate their purchasing work. It allows organizations to manage most of their procurement activities online, including producing and sanctioning purchase orders, choosing and ordering goods, receiving and matching invoices and orders, and making payments. Procurement units can use this solution to organize order shipments for full capacity, or to interact with suppliers bidding for orders. Main benefits of procurement systems are the ability to utilize economies of scale, better coordination with vendors, and decrease in effort and time needed to manage purchases.

Procurement applications should not be confused with purchasing or warehouse management tools, though they may share some functionalities with them.

Features of Procurement Software

Group Purchasing System

An e-procurement solution can not only help to track your purchasing, but also save you money. Innovative e-procurement tools aid you to source supplies from trusted vendors at a discount, without a contract. In fact, solutions like Buying Desk can perform the searching for you – and avail you a discounted rate.

Budgeting Feature

Are you able to track your budget closely to ensure there is enough money for purchases and equipment? E-procurement software can help by displaying information on what to purchase, where to purchase it, and whose sign off is required, all in a single central location that is easy to navigate. Before you submit a request, the screen displays the amount available in the budget, so you’ll know whether the item purchase will be approved or not. If the procurement is over budget, you can make a request for added approval.

Approval Workflows

E-procurement software allows you to easily create custom workflows without needing additional money or time. You can route requests based on any field that is relevant to your enterprise without employing a consultant to handle the platform. After setup of the workflow, it should automatically flow from one user to the next without needing their manual involvement. Plus, each approver will get an email notification on every step of the process. With an efficient approval workflow procedure, your enterprise can get a PO approved in less than a day – saving money and time.

Fast and Flexible Deployment

You should be able to deploy a good e-procurement software in less than a month. It will allow you to access your data anytime, from anywhere on mobile or web devices. Plus, the solution should be flexible to meet your organization’s precise needs and not vice versa.

Smooth Integrations

Many companies have expensive, complicated, and semi-manual options for integrating their procurement platform with their ERP, accounting, and other systems. A quality e-procurement application is a better option as it facilitates real-time, seamless integrations. Further, it can expedite your procurement process by connecting directly with your accounting solution. In return, you ERP should communicate back, giving your e-procurement program vital information like budgets, so that your users don’t need to access the accounting software to avail the data they require.

Benefits of Procurement Software

Standardizes Processes

With an e-procurement solution, you can standardize forms, workflows, and approvals for purchase orders, and requests for quotes and proposals. This eliminates wasteful spending and helps to avoid deviations from the company’s official purchasing authorizations and policies. Further, businesses can include preferred and contract supplier info in the platform, to avoid the need for manual research to execute each new order.

Provides Control and Transparency

E-procurement software stores information about orders, requisitions, purchases, and payments in a centralized place. This can assist to eliminate duplicate orders and monitor the procurement cycle, delivering updated and accurate availability, pricing, and inventory data to all users. Tracking enhances visibility and transparency of all transactions in the supply chain procurement cycle. Contract compliance and authorizations can be authenticated and independent spending can be placed under control.

Improves Productivity

Another vital benefit of e-procurement platforms in increased efficiency as they reduce the time needed to complete processes like invoicing, ordering, approvals, and payments. By automating manual tasks, an e-procurement application frees employees from mundane work like paper processing, filing, and data entry. Instead, they can concentrate on important tasks like strategic sourcing and improving vendor relationships.

Shortens Business Cycles

E-procurement helps to complete transactions swiftly and in real time by automating processes and reducing physical paper transfers. This efficiency can boost the productivity of all units in your enterprise as they do not need to wait for manual approvals and data entry processes.

Decreases Costs

E-procurement can help save money for your company by eliminating paperwork and the expenses of physical storage and paper processes. Plus, you can reduce or eliminate errors that happen typically in manual processes, removing the requirement for costly procedures like reworking errors and dispute investigation and resolution.