Procurement software for faster, smarter, and cost-effective procurement

A procurement system is a distinct yet streamlined process created by an organization to purchase goods and services from third-party vendors or suppliers. It includes the company’s entire procurement cycle. Be it creating requisitions, managing bids, undergoing vendor selection to order placement, delivery tracking, or payment processing. With an ideal e-procurement system, companies can digitize this process using specialized procurement software platforms and improve transparency and cost control with suppliers.

For example, you own a construction business. Now, the business requires some heavy machinery and parts. Hence, you look for suppliers for the same. Ideally, you would first contact multiple suppliers, convey your requirements, and then get quotations from the suppliers with the best competitive prices and quality standards. Once you get quotations from the listed suppliers, you compare and select the best based on price, logistics cost, machinery quality, delivery and return terms, negotiate deals for better pricing, inculcate sustainable relationships, and bring them on board.

There are 4 main types of procurement:

1. Direct procurement- This type of procurement involves purchasing raw materials required to produce an end product for an organization. However, with this type of procurement software, requirements vary from industry to industry. For example, manufacturing industries require raw materials and machinery to produce new products; similarly, retailers buy from multiple wholesalers to resell the items to customers in their region.
2. Indirect procurement– This type of procurement includes goods and services purchased to fulfill an organization’s day-to-day operations. However, they do not contribute directly to the company’s net income. For instance, maintenance services and equipment, marketing campaigns, consulting, office supplies, training services, etc., do not directly contribute to the end product. Modern procurement systems streamline these recurring purchases through automated workflows.
3. Services procurement- This type primarily focuses on acquiring people-based services such as professional services, contractors, and consultants. Procurement solutions in this category often include features for statement of work management, time tracking, and deliverable monitoring.
4. Goods procurement- This type relates to acquiring physical items, products, and software subscriptions. This e-procurement system is helpful when you have strong vendor management, catalog management, and order tracking functionalities.

There are 11 steps to the procurement process:

1. Identifying requirements for the goods and services
2. Making an official purchase request for the goods or services
3. Check and approve the purchase request, ensuring enough money is in the budget
4. Assessing and picking vendors based on company needs, looking at quality, cost, delivery times, and the supplier’s past performance
5. Negotiating a contract, picking one that fits the budget, and discussing contract details
6. Sending a purchase order form to the chosen supplier and tracking the delivery
7. Receiving the delivered goods and checking the items to ensure everything matches what was ordered
8. Comparing documents/invoices for payment
9. Sending payment to the vendor as agreed in the contract terms
10. Comparing the items received, the supplier bill, and the order form to ensure everything matches up.
11. Keeping a record to help with audits

Procurement software transforms the purchasing lifecycle of an organization by digitizing all stages. Right from initial vendor selection to payment settlement. The best procurement software will ensure it streamlines cost management, automates vendor relationships, and enforces purchasing controls. Organizations leverage procurement automation tools to enhance spending visibility, accelerate purchase-to-pay cycles, and establish standardized procurement management software practices that drive operational efficiency and strategic value.

Procol offers the best procurement software in the market. What makes it a leading procurement software provider or an ideal procurement solutions company is its intuitive and customizable procurement technology that has been securely deployed globally. Procol’s procurement management software has helped many organizations reduce costs, digitize procurements, and improve compliance by replacing emails and Excel workflows with the world’s most easy-to-use and secure procurement platform.

No, ERP is not specifically a procurement software. ERP (Enterprise Resource Planning) systems are integrated business management solutions that coordinate with multiple organizational functions within one platform. While having procurement software capabilities is a significant component, ERP platforms handle diverse business processes, including financial management, human resources, manufacturing, inventory control, and customer relationships.

1. Elimination of Procurement Risks
2. Procure-to-Pay (P2P) Cycle
3. Reduction in Costs
4. Expenditure Analysis
5. Management of Risks
6. No Manual Errors
7. Centralized Management
8. Improved Supplier Collaboration
9. Scalability and Flexibility
10. Enhanced Compliance Management