Tracking and managing direct procurement at scale is a challenge for many SMBs. Businesses struggle with supplier coordination, slow approvals, and limited visibility into spending.
Direct procurement software solves these issues. It automates supplier management, approvals, and budget tracking. Instead of juggling spreadsheets and emails, finance and operations teams get a streamlined procurement system that provides better control.
This article breaks down the challenges of direct procurement. We’ll also show how ProcureDesk helps SMBs simplify and scale their procurement processes.
What is Direct Procurement?
Direct procurement refers to acquiring goods, direct materials, and services used to produce a company’s end product. It impacts costs, product quality, and business revenue. Unlike indirect procurement, which covers office supplies, software, and services that support operations, direct procurement focuses on raw materials needed for production.
The direct procurement process involves:
- Selecting reliable suppliers
- Negotiating competitive prices
- Risk management and potential delays
- Maintaining quality standards
For example, a law firm procures legal research tools and case management software, while a construction company sources building materials. In both cases, direct procurement helps secure the right resources at the best value.
Key Features of ProcureDesk’s Direct Procurement Software
ProcureDesk’s direct procurement software solution automates your procurement process. We’ll help set everything up for your team for a complete digital transformation of your procurement process.
Here’s a detailed look into ProcureDesk’s key features:
Centralized Vendor Tracking
ProcureDesk consolidates supplier data like performance, contracts, and pricing trends into a single dashboard. This simplifies vendor tracking for quick analysis and helps you assess your supplier’s performance. With built-in supplier relationship management tools, businesses can strengthen vendor partnerships and improve long-term supply chain management.
Supplier evaluation criteria, such as quality standards and pricing, can be improved using historical data, contract details, and accurate purchase order reports.
For example, a home-building company purchasing lumber can track price fluctuations over time. If costs rise consistently with one supplier, they can compare past orders, identify more reliable alternatives, and negotiate better bulk pricing.
Automated Purchase Order Approvals and Tracking
ProcureDesk tracks and approves purchase orders (POs) and requests with automated workflows. You can set custom workflows or use our pre-built templates to set predefined rules and limits. These approvals are routed based on amount, department, or budget.
For example, if your marketing team requests a $5,000 software subscription that exceeds the self-approval limit, ProcureDesk automatically sends it to a manager for approval.
Once approved, the software converts the requests into digital POs, eliminating manual follow-ups and delays.
Seamless Integration with QuickBooks, Xero & Other Tools
ProcureDesk automates your source-to-pay process by integrating with QuickBooks, NetSuite, Xero, Sage Intacct, Dynamic 365, and Slack.
Here’s how integrations work:
- Create & assign purchases: You can generate purchase orders from catalogs or punch-out suppliers. Assign purchases to GL (general ledger for central records) accounts, projects, or locations for accurate tracking.
- Automated approvals: The software routes your purchase requests based on category, amount, or business rules. You can approve orders instantly via email or the mobile app.
- Bill reconciliation: ProcureDesk matches purchase orders with invoices to detect discrepancies. And any flagged issues are sent for review.
- Sync to accounting software: Once approved, purchase orders and bills sync instantly with accounting software for payment.
This three-way matching process saves valuable counter-checking and manual data entry.
Budget Controls
ProcureDesk prevents overspending by setting limits and tracking every purchase through multi-level approvals. With real-time forecasting and spend management tools, finance teams can proactively adjust budgets based on procurement trends.
When your employees request a purchase order, the system routes or automates approval based on your company’s spending policies and pre-defined workflows. This reduces financial risks and supports sustainable growth.
Punchout Catalogs
ProcureDesk integrates with your supplier’s e-commerce platform or product catalog, allowing your employees to buy directly from approved suppliers.
You can view real-time pricing and check inventory availability through our interface. You can also customize your supplier’s catalog to match your branding.
For example, your lab manager ordering chemicals, reagents, and test tubes can browse supplier catalogs on ProcureDesk and choose products based on availability and real-time pricing.
The system will route the request for approval based on budget limits and department rules. Once approved, ProcureDesk places the order and updates the inventory.
This speeds up the purchasing process and helps you maintain budget control for both direct and indirect spend.
Compliance & Audit Readiness
ProcureDesk keeps records of every purchase, approval, and transaction, making audits simple. You can view complex reporting data via easy-to-read infographics within the software.
Our software also synchronizes data across marketing, sales, customer services, and procurement teams for real-time collaboration. This makes sure everyone’s up-to-date with financial reports and answerable for their purchases.
Advantages of Using ProcureDesk for Direct Procurement
Here are some advantages of using ProcureDesk’s direct procurement software:
Employee Productivity
ProcureDesk automates procurement workflows, reducing time spent on approvals, data entry, and tracking. This allows your employees to focus on high-value tasks like negotiating better supplier contracts.
Automated approvals also prevent bottlenecks and disruptions, making sure purchase requests move through predefined workflows without delays. For example, a skincare brand can set up automatic approval for essential oil purchases under $5,000. Without this optimization, every order might require manual approval from a department head or procurement stakeholders, delaying restocking.
Our centralized dashboard provides you with real-time visibility into orders, invoices, and budgets, reducing the need for follow-ups.
With accurate, real-time reporting, your employees can make faster, informed purchasing decisions, improving productivity and cost control.
Improved Supplier Collaboration
ProcureDesk helps you track, organize, and manage multiple supplier profiles, purchase histories, and the contract lifecycle. Through accurate reporting and tracking tools, you can negotiate better contract terms and prices that align with your company’s goals.
This helps you build stronger supplier relationships, establish clear quality standards, and reduce delays in deliveries.
Better Budget Management
ProcureDesk helps you control spending by automating approvals and tracking budgets in real time. Instead of manually reviewing purchases, you can set spending limits and approval rules that align with company policies. If a request exceeds the limit, the system flags it or routes it for approval. With built-in data analytics, finance teams can gain deeper insights into purchasing patterns and supplier performance.
Risk Reduction and Compliance Assurance
ProcureDesk reduces financial risk and supply chain disruptions by automating invoicing and tracking every purchase in real time. Instead of relying on manual checks, all transactions are recorded and synced with ERP / accounting software for accuracy and transparency.
Built-in policies make sure purchases follow your company guidelines, while real-time monitoring helps catch compliance issues early. This keeps financial records audit-ready and prevents unexpected risks. It also helps with ESG. Let’s say your company has sustainability goals and has certain vendors to help with that. You can monitor purchasing levels for that vendor or category of direct material to make sure you’re meeting those sustainability goals.
Faster Decision-Making
Our software speeds up decision-making by automating approvals and sending real-time alerts. Clients see “a 40% reduction in cycle time” after using ProcureDesk. Instead of waiting on manual approvals, procurement teams receive instant notifications, allowing them to approve or adjust purchases in seconds.
With real-time reporting, you can also track budgets, supplier performance, and spending trends from a single dashboard. This lets you make data-driven decisions that impact procurement strategy and increase profitability.
How ProcureDesk Compares to Other Direct Procurement Software
Here’s how ProcureDesk compares with other popular direct procurement software:
Precoro
Best for: Small teams with simple procurement needs
Precoro is a cloud-based procurement software that centralizes direct procurement activities. Key features include purchase orders, supplier collaboration, and real-time budget tracking.
Key Features of Precoro
- Basic procurement automation features
- Beginner-friendly interface
- Budget tracking capabilities for small businesses
- Automates the creation and tracking of orders
- Offers multi-level approval customization
Precoro Pricing
Precoro pricing plans start from $499 per month. Their Automation plan goes up to $999/month.
Procurify
Best for: Teams focused on employee purchase requests
Founded in 2012, Procurify automates purchasing and spending management. It helps you track providers and manage your employees’ purchase requests.
Key Features of Procurify
- Mobile app for managing purchase requests
- Allows employees to submit and track purchase orders
- Automates the invoice validation process
- Standardize procurement from request to payment
- Monitor budgets in real time
- Provides supplier management tools
- Offers comprehensive data analysis for insights
- AI-powered upload features
Procurify Pricing
Procurify charges custom pricing plans based on your business size and needs.
Tradogram
Best for: Companies wanting highly customizable, manual workflows
Tradogram is a procurement platform to automate your purchasing process with complete visibility. Its key features include supplier management, procure-to-pay, and material sourcing tools.
With Tradogram you can customize your manual workflows for purchase order processing.
Key Features of Tradogram
- Allows custom-built procurement workflows
- Has some supplier management tools
- Offers file-sharing and hosting capabilities
- Provides a basic dashboard view with simple automation
- Organizes items in an accessible database
- Workflow customization options for procurement functions
Tradogram Pricing
Tradogram charges three pricing tiers. The Pro plan starts from $198/month for 1 user and the Premium plan starts at $380/month for 10 users.
Comparing Direct Procurement Software
Here’s a quick summary showing the pros and cons of the direct procurement software we’ve discussed:
| Company | Best For | Pros | Cons | How it Compares to ProcureDesk |
| ProcureDesk | SMBs managing high purchase order and invoice volumes that need automation and accounting integrations | Automated purchase approvals, Seamless accounting integration, Real-time budget tracking, Punchout catalogs, Three-way invoice matching, Scalable for growing businesses | Limited advanced customization for highly specialized workflows | – |
| Precoro | Small teams with simple procurement needs | Basic procurement automation, Beginner-friendly interface, Budget tracking for small businesses, Good customer support | Limited invoicing features, Lacks robust automation for high-volume procurement workflows, Doesn’t fully integrate with accounting software, Expensive for SMBs | ProcureDesk integrates with accounting systems like QuickBooks and Xero. Uses OCR for invoice details and three-way matching. Handles 100+ invoices/orders per month with high-volume automation. |
| Procurify | Teams focused on employee purchase requests | Mobile app for managing purchase requests, Allows employees to submit and track purchase orders, Automates the invoice validation process | Has fewer supplier and inventory management tools, Requires additional tools for full AP automation, Lacks customization options, More suited for managing internal purchase requests than direct procurement workflows | ProcureDesk stores supplier data and contract details in a single database. More affordable for SMBs. Easier to integrate with accounting software for direct procurement. |
| Tradogram | Companies wanting highly customizable, manual workflows | Allows custom-built procurement workflows, Has some supplier management tools, Offers file-sharing and hosting capabilities | Basic dashboard, Requires advanced setup and configuration, Not user-friendly for simple automation, Relies on manual process design | ProcureDesk offers pre-made templates and customizable approval workflows. Easy to use, no technical complexities. Suitable for SMBs but scalable for growth. |
Top Challenges SMBs Face in Direct Procurement
Here are some challenges SMBs face in direct procurement:
Managing Supplier Relationships
Managing multiple suppliers is costly and time-consuming. Collecting, analyzing, and acting on the data using manual processes often leads to:
- Inconsistent evaluations: There’s no standard method for assessing supplier performance.
- Data silos: Supplier details are stored across spreadsheets, emails, and paper files.
- Slow data collection and reporting: Finance teams lack real-time data, delaying important decision-making.
Cost Control and Budget Adherence
A study shows that 60% of every sales dollar goes to material costs. Many businesses lack automated tools to track spending and negotiate better deals.
Without a direct procurement software, businesses:
- Can’t compare real-time cost
- Surpass spending limits without proactive alerts
- Miss bulk discounts due to limited visibility into past orders.
Compliance and Risk Mitigation
SMBs often track risk and compliance using spreadsheets. These manual processes slow down reporting and proactive decision-making.
Without real-time visibility, you can’t track supplier performance or spot issues early. This leads to audit delays, compliance risks, and quality issues in production.
How to Choose the Best Direct Procurement Software
Here’s how you can choose the best direct procurement software for your business:
Assess Your Business Needs
Choose a software that addresses your procurement challenges. Do you need strategic sourcing, automated approvals, real-time budget tracking, or better supplier management?
If your company still relies on spreadsheets for supplier management, tracking performance can be slow. ProcureDesk centralizes supplier data, giving you real-time insights to make better procurement decisions.
Evaluate Software Features and Capabilities
Compare each software feature. Make sure they align with your business goals. Take a look at platform reviews that mention user experience. You want direct procurement software that is powerful but easy to use.
Consider your budget & ROI
Calculate your budget before you invest in any software. Choose the right platform that promises you a high return on investment (ROI).
ProcureDesk offers affordable pricing plans starting at $498 per month, making it a cost-effective solution for SMBs looking to streamline procurement and control spending. When you compare that to how much employee time is eaten up by direct procurement the cost savings are clear.
Easy Accounting Integration
The best software integrates with your accounting systems. It should automate invoicing with accurate data reporting.
ProcureDesk is the best platform for easy accounting. Our software integrates with your accounting system and supports three-way invoice matching, automating manual data entry and financial reporting.
Check for Compliance and Audit Features
Make sure the software enforces spending policies. It should maintain audit logs and support regulatory compliance.
ProcureDesk documents every invoice and transaction for audit trails. It has built-in compliance to help you enforce company spending policies with automated alerts. This prevents rogue spending or regulatory violations.
Check Customer Support
Choose a platform that has personalized customer support. ProcureDesk is praised for its highly responsive customer support. Our dedicated team helps you onboard and makes sure ongoing issues are resolved quickly.
Easy Onboarding
The right platform has a simple interface for quick employee onboarding. ProcureDesk is the best choice for a free onboarding setup
Consider Scalability
The right solution scales with your growing business. Make sure it has a flexible approval hierarchy and customizable workflows.
ProcureDesk’s custom approval workflows and advanced automation features adapt to your procurement needs, making it a reliable long-term solution.
Case Studies: How Real SMBs Benefit from ProcureDesk
Here’s how ProcureDesk simplified direct procurement for real SMBs:
How EvolveImmune Improved Direct Procurement with ProcureDesk
The Problem
EvolveImmune Therapeutics, a growing biotech company with 200 employees, faced challenges managing direct procurement. They relied on multiple systems for lab supplies, consumables, and contracted research, leading to inefficient approvals, manual invoice tracking, and limited visibility into spending.
The Solution
EvolveImmune adopted ProcureDesk to consolidate all direct procurement into a single system.
This allowed them to:
- Manage all supplier orders in one platform.
- Automate invoice processing and approval workflows.
- Reduce manual workload and improve order tracking.
“ProcureDesk has saved us so much time. The volume of our orders has increased, but we’re spending less time overall on procurement.”
The Results
- Less manual work: Faster approvals for direct procurement.
- Better tracking: Orders and invoices were linked for real-time visibility.
- Scalable workflows: Automated approvals adjust to procurement needs.
How Equality Charter School Improved Procurement with ProcureDesk
The Problem
Equality Charter School, a Bronx-based charter school network with 200 employees, struggled with slow, manual order processing. Teachers needed supplies quickly, but manual procurement workflows caused delays. Their existing procurement software lacked integration with tools like Bill.com, making it difficult for finance teams to track purchases and approvals.
“We were using a different procurement system initially, but we still had to manually place orders. We use different accounting software for different tasks, so we needed a procurement solution with better compatibility to streamline our operations.”
The Solution
Switching to ProcureDesk allowed Equality Charter School to:
- Integrate procurement with Bill.com for easier financial tracking.
- Automate purchase approvals and reduce manual order placements.
- Speed up order fulfillment for vendors like Amazon.
With ProcureDesk, supply requests, approvals, and purchases were processed faster in a single system.
The Results
- Order placement time was reduced from 5 days to less than 24 hours.
- Teachers gained better visibility into order status, improving lesson planning.
- Finance teams spent less time managing purchases, allowing them to focus on other priorities.
The Bottom Line on Direct Procurement Software
ProcureDesk automates direct procurement through real-time visibility, advanced reporting, and unified control. With our built-in features, you can track spending, customize approvals, manage your supply chain, and automate invoicing.
Learn more on how you can improve your direct procurement with ProcureDesk. See the software in action
