Fast-growing companies who are looking for Procurement software often struggle with the following:
Chaotic procurement process
If you have a manual procurement process, you have a chaotic process.
When you don’t have procurement software, there is no easy way to implement a streamlined procurement process across the organization. Even if you have a purchasing policy, you settle for lower compliance rates. Employees are not following the purchasing policy.
Lack of Spend control
If the procurement process is not streamlined, you don’t have a good cost control process. Employees might be purchasing on credit cards or without purchase orders. The finance team doesn’t have a way to authorize the Spend before it happens.
Poor Cash Flow visibility
Not having a tighter spend control leads to poor spend visibility.
Surprise invoices are common, and the CFO always asks – who approved this purchase? Sounds familiar!
If you are looking for Procurement software for your high-growth company, you are at the right place.
In this article, we have compared the 10 best procurement software solutions so that you can decide which solution works best for you.
Procurement software automates the purchasing process and improves the efficiency of the purchasing team.
A procurement software generally helps the finance and procurement team increase productivity and get better cash flow visibility.
Typical features of procurement software include the following:
Procurement software can be a cloud-based procurement solution, or you can implement it on-premise.
Some Procurement software does have invoice processing capabilities.
For example, we offer integrated procurement and accounts payable.
But for this comparison, we have only focused on the purchasing automation capabilities.
There is a wide range of procurement tools.
Our goal is to help you narrow the choice for a procurement management software that first the needs of your small to medium-sized business.
There are three things that you should consider:
Of course, the cost is important but compare the total cost of ownership, not just the cost of the software. Cost of software, training and ongoing support are the three critical elements of the total cost of ownership.
The following are the ten different procurement software vendors.
Note: ProcureDesk is our product. We’re proud of what we’ve built. It includes features we would have liked to have ourselves, having previously used a manual paper-based procurement process. Stop struggling with the manual procurement process and learn how to streamline your purchasing and procurement process. Learn more and schedule a demo.
ProcureDesk help CFOs implement cost control process and get real-time visibility into company spending.
With effective cost control, finance leaders can control maverick spending and bring more Spend under management.
ProcureDesk supports integration with many accounting systems like QuickBooks, Xero, Sage, and Netsuite.
Here are the key features of ProcureDesk procurement software:
Are your employees tired of paper forms for requisitions?
Then the requisition module in ProcureDesk can help.
With a simple requisition process, employees can submit purchase requests quickly. There is no need to print forms, fill the form, and then send it for approval.
With smart defaults, the system understands the recurring data entries like your department ship and other details.
All you have to do is enter details about what you are looking to purchase and submit them for approval.
Here is what a simple requisition form looks like:
You can also route an approved requisition to a procurement department buyer, who can then convert the request into a purchase order.
Even though the process is much easier with ProcureDesk, you still need to enter requisition line-level data, which could be cumbersome for recurring items.
That is where catalogs help.
With catalogs, your employees get the online shopping experience for corporate purchases.
With vendor catalogs, you can greatly increase the purchasing experience for your employees.
ProcureDesk supports two types of catalogs.
With a punch-out catalog, You can link ProcureDesk to other vendor websites like Amazon, and Staples to name a few.
Your employees can then search the entire catalog and bring back the item details to ProcureDesk for further approvals.
Here is an example of an Amazon punchout, where the user is getting routed back to ProcureDesk for further approval.
And this is how the data looks in the user requisition queue.
All the data gets copied from the Amazon website to the user cart.
You can also build your catalogs. That is very beneficial for small vendors who don’t have a website but offer limited products.
Here is an example of internal catalogs.
Want to control spending?
Then use the budget features to enable budgets for different departments.
Once the budget is set up, the system automatically ensures that the purchase requisitions stay within the budget.
With the built-in budget controls, you can block the purchase if enough budget is not available.
You can also inform the budget owner when the budget hits a predefined consumption level.
With flexible budget controls, you control spending and enable better Spend management.
The next step is to route the purchase requisition for approval.
With a custom workflow engine, you can set up a workflow that suits your approval process needs.
You could set up a requisition approval workflow based on the department, amount threshold, or simply the managerial hierarchy.
The setup process is very straightforward. The system automatically creates the workflow for the requester so that they don’t have to think about who needs to approve the requisition.
Here is an example of approval workflow:
Sometimes you just don’t have a preferred pricing contract with a vendor.
So before you purchase the item, you need to get a quote from the supplier.
If you use emails to get quotes, that could be quite cumbersome. With the back and forth of emails, the process is very chaotic.
With the supplier quote module, you can create quotes and send requests to different vendors simultaneously.
After the supplier responds to your request for a quote, you can easily compare the response side by side and then pick the best vendor for your needs.
Here is an example of how that looks:
With the purchase order management feature, a purchase order is issued to the vendor automatically.
Now, not all purchase requisitions need an order issued.
The request could be for internal use, or the employee will place the order directly on the vendor’s site.
Whatever is the case, ProcureDesk can help you automatically convert the requisition into purchase orders where a purchase order is required.
In cases where a purchase order is not required, the system can just let the requisition remain in the approved status.
You can set up rules based on suppliers to automatically convert a requisition into a purchase order based on each supplier’s preference.
Here is an example of how a purchase order document looks:
With the current supply chain issue, you want to know when your order will be shipped.
That question is tricky if the vendor doesn’t acknowledge the purchase order. That is why you need strong supplier collaboration.
That is why we have built an order acknowledgment feature that allows you to request an order acknowledgment from the vendor.
You can, of course, request an acknowledgment by email, but that could be not easy to track, especially when you have a large purchase volume.
We have simplified the order acknowledgment process by providing an easy way for suppliers to submit order acknowledgment.
All the supplier has to do is click a link from the order email and confirm the acceptance of the potential delivery dates.
Here is an example of how easily the suppliers can submit order acknowledgment.
Once the vendor ships the product, they generally provide the tracking information so that you can track the delivery of the product.
With ProcureDesk, suppliers can electronically post that information.
ProcureDesk can then track the package and inform you when the package is delivered or in transit.
We track 100’s carriers so that you don’t have to manually go to each carrier’s site and search for the tracking information.
Here is an example of how tracking information works in ProcureDesk.
One of the challenges for the AP team is that they don’t know if an invoice is approved to pay.
Generally, the culprit is a missing receipt because the employee forgot to create a receipt in the system.
With the receipt module, you can easily track what is getting delivered.
When the invoice gets loaded in the ProcureDesk accounts payable module, the system automatically sends a reminder to the order contact for creating the receipt.
We provide three easy ways to create a receipt:
You can do full receipts or partial receipts based on the actual delivery.
Here is an example of a full receipt:
Do you purchase many materials that you use for different projects?
Or you might be a Biotech that needs to maintain lab supplies so that you don’t run out of lab supplies.
Whatever is the case, an inventory tracking module can help.
Here is how the inventory management module can help.
You can get an accurate inventory of what you have on hand for different inventory items with inventory management modules. You can track lead times and measure supplier performance.
The system also updates the on-hand quantity as soon you create a receipt in the system for the purchased products.
Here is a snapshot of inventory valuation reports that shows you how much inventory you have at any time:
You can also track the inventory usage so that you know how much inventory is left.
You can use the inventory requisition process so that employees can use the requisition process to request inventory items.
Or you can simply create a release request to release the inventory. It makes it easier to track who is requesting and using the website.
Here is an example of how a release tracks the usage information:
With a Spend Dashboard, you have complete visibility at your fingertips.
The spend dashboard answer the following questions for you:
Here is an example of a spend dashboard:
With Spend analysis reports, you can gain granular visibility into your Spend.
You can then use that visibility to allocate costs better or negotiate better pricing with a vendor. That enables the finance team to make better business decisions.
Here is an example of a Spend analysis report:
This report gives you a detailed view of what you have purchased in a given timeframe at a line level. You would know the unit quantities and unit price.
Use this information to control Spend or negotiate a better price with your vendors.
ProcureDesk procurement software starts from $325/month and that covers up to 10 users. Additional users can be added for $20/user/month.
Procurify is a cloud-based procurement software that offers a complete spend management platform.
It helps companies by simplifying the purchasing controls and enabling better Spend management. With its custom approvals and real-time budget controls, companies gain complete visibility.
Here are the key features of Procurify:
With purchase requisition, the users can easily request what they want to purchase.
With automation, you don’t need to worry about manually creating purchase requisition forms and routing them for approvals.
Procurify supports custom workflows that enable better purchasing workflow.
With custom workflow management, you can set up different approval levels. You can also set up approvals by departments, locations, or the chart of accounts,
The approval engine also sends notifications on your mobile app. No more missing approval notifications.
With the real-time budget controls, you can see the budget consumption in real-time.
Users can assign a purchase order to the budget, and the approvers can see the budget consumption in real-time.
Procurify allows you to set up budgets by locations, departments, projects, etc.
You can also check how much of the budget is already committed.
Procurify provides support for vendor catalogs, including internal and punchout catalogs.
You can create unlimited internal catalogs.
However, the system limits the punchouts only to Amazon at this time. You might want to check with the vendor on all punch-out vendors they support.
After a requisition is approved, a Buyer can convert it into a purchase order.
The system allows you to create a purchase order from the requisition.
You also can consolidate multiple requisitions from users into a single purchase order.
The purchase orders can also be dispatched to the vendor automatically.
We did not see any information regarding this feature on Procurify’s website.
So we assume that there is no way to confirm the delivery of the product by creating a receipt in the system.
Procurify Reports include:
You can also export report data into different formats.
Procurify doesn’t list the pricing on their website. You have to call the vendor to get a quote.
Here is an overview of Procurify’s pricing:
Precoro is an online procurement software that saves your time and money. With Precoro, you can eliminate manual work, coordinate purchasing processes, and reduce expenses.
Following are the key features of the Precoro procurement software.
Precoro purchase request module allows you to create purchase order requests easily.
You can build an internal catalog for purchase. Employees can easily create a purchase request without manually entering all the data in the system.
Once the employee submits the request, it gets routed for approvals.
Precoro allows you to create custom approval workflows based on the departments, locations, and custom fields.
We assume that you can create multi-level approvals for routing the purchasing request.
There is support for mobile approval to approve requisitions on the go.
You can automatically create a purchase order from the purchase requisitions.
Once the purchase order gets generated, it gets routed to the vendor.
The system allows you to add comments and attach supporting documents.
You can also create a purchase order directly without a purchase requisition.
You can set up budgets by locations, departments, and custom fields. The approvers can track purchases in real-time and see the budget consumption with budget management before approving the purchase.
With budget reporting, you can track budget consumption across all areas.
With the inventory management module, you can track on-hand stock and create receipts for goods.
There is a purchase request flow for inventory. You can use this feature to release the inventory based on the user’s request.
Precoro offers standard reports and a visual graphic so that it is easy to understand the data.
You can also create custom reports to easily filter the data to narrow down the output of reports.
Precoro has two pricing plans. If you are looking for less than 20 users, the pricing is $35/month. They have a custom plan for more than 20 users.
Spendwise offers a cloud technology solution for spend management.
Following are the key features of the SpendWise purchase order platform
You can easily create and send purchase orders to the vendors with the purchase order functionality.
With the receiving functionality, employees can confirm the receipt of the purchase orders. This way, the AP team always knows when an invoice is ready to be paid.
The budget feature allows companies to track spending against a budget.
Spendwise offers over 25 canned reports to get you started with reporting.
Pricing starts at $9/user/month for the basic package and goes up to $19/user/month.
Kissflow Procurement cloud platform helps companies streamline their procurement process.
Kissflow is, first and foremost, a workflow tool. The procurement cloud is one of the many modules the company offers its customers.
Here are the key features of the Kissflow procurement cloud software:
With the purchase request module, companies can automate their manual purchasing processing.
Kissflow supports internal catalogs that make it easier for employees to create requisitions. There is no support for punchout catalogs at this time.
With an intuitive dashboard, you can easily track the lifecycle of all purchase requests and where they are pending.
You can also define budgets that allow you to check real-time budget usage easily. By checking the budgets in real-time, you can control spending and inform employees if there is no budget left.
Given that Kissflow is primarily a workflow tool, the procurement cloud has robust capabilities around workflow.
You can define a workflow in advance. The system figures out the workflow in real-time and automatically routes the requisition for approval.
After the requisition gets generated, it is automatically converted into a purchase order.
With the auto-initiate feature, you can also set the purchase requisition to create the purchase order after the requisition is approved automatically.
You can also add custom fields to the purchase order to suit your needs.
The Spend dashboard provides instant visibility into your cash flow. You can track spending by location, department, and budget vs. actual.
The dashboard also has the ability for custom reports which allows you to customize the reports based on your needs.
Pricing for Kissflow starts from $1990/month and is then adjusted based on the features requirements and the number of users.
Here is the snapshot of the pricing section:
Certify offers a spend management solution that includes expense management and AP automation. The AP automation module includes the requisition and purchase order functionality.
The key features of Certify procurement software include the following:
With online requisitions, you can get rid of paper forms and automate your requisition process.
Employees can also see what requisitions are still pending and are already approved.
Once the purchase requisitions are approved, a Buyer can convert them into a purchase order.
Certify supports punchout catalogs that allow employees to create requisitions from different vendor websites. For example – if a user wants to purchase IT supplies from CDW, they can easily do that from the requisition screen.
We are not sure how many vendors Certify supports. Still, you might want to call the vendor to understand their capabilities around vendor punch-outs.
Once the requisition is submitted, it is routed for approval.
The approval workflow engine allows you to route the request for approvals based on the named users or predefined workflow conditions.
Certify allows you to create purchase orders from a requisition, or you can directly create a purchase order from scratch.
The purchase order module also supports internal catalogs or punchouts to create a purchase order easily.
The purchase order can be emailed, sent electronically, or faxed to the vendor.
The vendor doesn’t list the price on their website. You have to book a demo to get the pricing.
Tradogram is a cloud-based purchase order software that helps Purchasing decision-makers gain better spend visibility and cut costs.
The following are the key features of the Tradogram purchase order software:
With the requisition module, companies can automate their manual purchasing process.
You can create requisitions from internal catalogs or purchase one-off items by entering the data manually.
The system also allows you to connect to different vendor websites. Employees can easily choose what they want to purchase.
Once the requisitions are approved, you can convert that into a purchase order.
With the custom workflows, users can set up approvals based on the company’s needs.
For example, you can set up an approval workflow based on the item purchased or the location.
If you are a small company, you can use the workflows to send the request to the named users within the company.
One of the unique features of approvals is specifying exemptions for approvals. This allows the system to bypass the approvals when certain conditions are met.
The budget management module can track the spending against budgets across all departments.
You can set up a budget by project, by location, or set up different levels of budgets across the organization.
The budget module also allows you setup up budgets by GL accounts and track spending at that level.
Tradogram provides you with a single place to create and track purchase orders.
Employees can create purchase orders from scratch or an existing requisition.
You can add items from an existing database or online stores and attach specifications and files to the purchase order.
You can set up items to maintain stocking levels with the inventory management module.
You can set up reorder points so that the system can inform you when the product needs to be re-ordered.
You can also connect the inventory module to the requisition module so that employees can create purchase requisitions for inventory items. Once the requisition is approved, it can be fulfilled directly from the inventory.
Tradogram is a freemium pricing model. That means you can use the system for free if you only have one person creating the purchase orders.
You can create up to 10 purchase orders a month in the free plan.
The paid plans start at $18/user/month.
Here are the pricing details for Tradogram:
Order offers a complete procure to pay solution for companies. Companies can use Order to place a purchase order and pay vendors.
The unique value proposition is that they consolidate the billing for you. You only have one bill to pay instead of paying individual vendors.
Here are the key features of Order procurement software:
Since Order is a managed platform, they allow their customers to create a curated catalog of items they want to purchase.
You can pick and choose across different vendors and create a unique catalog that meets your needs.
This could be a good solution if you are a small company that mostly purchases products from e-commerce sites.
You would probably need to spend time setting up and curating the catalog.
Order negotiate the pricing for you. You get the best price on your products.
This way, you are ensured that you get the best pricing for the products you purchase.
The negotiated pricing is limited to the selected vendors that are part of the Order network.
With budget approvals, you can route the purchase request for approval to the respective team members.
You can route the request for approval based on the locations or GL codes. The custom workflow makes getting the right approval for different purchases easier.
With an inbuilt reporting functionality, you can track all your spending.
The reporting provides line level visibility into your purchasing,
A buying team can easily download the data for Spend analysis and make informed decisions if you have a buying team.
The pricing is not available on the vendor’s website. You have to schedule a demo to get the pricing.
ProcurementExpress helps small businesses control expenses and gain visibility into the cash flow. It helps the CFO’s make their teams more accountable.
Here are the key features of ProcurementExpress procurement software. The system has limited capabilities becuase it only supports the use case of purchase orders.
With the purchase orders module, employees can easily create purchase order requests. The system allows for custom fields. You can add whatever fields you need to keep track of your spending.
With the approval workflow, you can set up the routing and let the system route the purchase order requests for approvals.
You can set up named users for certain approval thresholds or identify a threshold at each level.
The system then notifies the next person in the approval chain based on their approval limit.
With the budget feature, you can create unlimited budgets and keep track of your spending across the company.
Procurement Express lets you create budgets at the department level and project level. You can set up granular budgets for tracking the spending.
With the reporting module, you can get instant visibility into your Spend. You can see the standard reports, filter the reports and then export the data. The reporting module allows you to get what you need quickly.
The pricing starts from $31/user/month.
The vendor doesn’t have any minimum at this time.
This Digital Purchase Order Software helps companies manage their procurement workflow, including purchasing and invoicing functions.
Here are the key features of the digital purchase order software:
With the purchasing order feature, Digital purchase order allows employees to create purchase orders easily.
The application is good for small purchase orders. You can enter the description of the item you want to purchase. There is no support for catalogs.
You can set up approvals so that the request gets routed for approval to different stakeholders.
The workflow needs to be predefined and adjusted as your approval threshold changes.
You can track the delivery of the purchase orders. It is not clear whether the system allows you to create receipts or just track the shipment status of the delivery.
There is an inbuilt reporting feature that allows you to see all the spending in one single place.
You can see PO reports by
Digital purchase order has an interesting pricing model. They have a mix of user-based and usage-based pricing. That means you pay a base fee and then pay for transactions over the allocated quota.
The pricing starts from $19/month to $79/month. For example, In the $19 package, you can create up to 50 purchase orders.
After implementing procurement software, our customers often see the following benefits:
After implementing a procurement process, all spending gets authorized at the right level in the organization.
The budget owners can see the Spend before it happens. The Finance team can review significant Opex and Capex purchases before the purchase order gets issued to the vendor.
As a company, you get better overall cash flow visibility.
One of the biggest advantages of a procurement tool is that the purchasing process is completely automated.
No paper requisitions are floating around, and no chasing managers to approve the purchase request.
The system routes the purchase request for approval by streamlining the purchasing process. It then sends reminders if the request is not getting approved in time.
That leads to a reduction in the total cycle time. It is not uncommon for our customers to see up to 50% reduction in cycle time.
Once the procurement process gets streamlined, the buyers do not approve purchase requisitions and chase managers for approvals.
They are rather focused on reducing the overall cost through better Spend negotiations.
For example, suppose multiple locations purchase office supplies from different suppliers. In that case, you can get a 5% cost savings by consolidating the vendors.
We have presented ten different options for procurement software that a small business can use to simplify the purchasing process.
The option ranges from a simple purchase order app to a complete procure to pay system.
To figure out the best possible procurement software for your small business, here is what we recommend:
We hope you find this helpful. If you would like to see how ProcureDesk Procurement software can help you streamline your procurement process, click on the link below to schedule a demo.