Written by Marijn Overvest | Reviewed by Sjoerd Goedhart
Fact Checked by Ruud Emonds | Our editorial policy

Procurement System Requirements

Since we’re dealing with an automated system, it’s only natural for the procurement manager to take a look at the program and decide whether it is up to the task.

We at Procurement Tactics have devised several ways to check and decide which procurement system is the best choice for your company.

You can check out our procurement courses for more information on the topic, but since we’re feeling very generous towards our dear readers, here are some important features that you should check out in an e-procurement system before you decide to give the okay signal:

1. Customization

Most procurement systems are designed to handle multiple functions in case the organization needs to do other procurement processes too, such as sourcing, product and market research, and others. Companies of all sizes and types should get a procurement system where they are able to customize the program to how they see fit.

2. Workflow approval

The approval for the workflows in the procurement system should be quick and easy. The automation feature of an e-procurement system does just that. What takes months or weeks for a procurement manager to follow up can now be achieved in a few days.

3. Three-way matching

Good working procurement systems should have three-way matching functions in their programs. This particular matching system eliminates procurement fraud by cross-checking invoices, goods receipts, and purchase orders. All of these are checked before payment is issued to the vendors.

4. Cloud hosting

Nowadays, procurement systems are now run on cloud hosting. It offers endless possibilities and data security as well. Self-hosting your procurement software is asking for trouble since the process is already outdated and has many flaws.

5. Vendor management

Procurement systems can now check and assist vendors with regard to the procurement process. Keep an eye out for procurement systems that offer vendor management as these programs can help you in assessing vendor performance, managing contacts, and onboarding vetted suppliers.

6. Spend Reporting

After the whole procurement process, there is always the checking of how much did your procurement go in terms of company spending. A program that can track your company’s spending footprint is a good find, so make sure to get a system that offers this particular feature.

7. Integrations

Integrations are important because procurement is not just about one process, but is made up of many processes. A procurement software that includes integrations to many other procurement processes is another great find, so go ahead and get that program if it does offer integrations!

Procurement System Examples

1. Precoro

Precoro is a cloud-based purchasing software that has robust procure-to-pay systems for your business. Additionally, it helps you streamline your procurement processes with a user-friendly interface. 

The key features of Precoro include purchase order creations, visual spend analytics, real-time budgeting, three-way matching, and catalog management. Precoro starts at $35 per month. However, it has a free 14-day trial that you can use to check if it suits you. 

2. Oracle Procurement Cloud

Oracle Procurement Cloud is an integrated source-to-settle system that automates business processes. It enables strategic sourcing, simplifies purchasing, improves supplier relationships, and increases business profitability.

Oracle procurement cloud has a free trial. However, it has different pricing for its various plans which you can check here. 

3. Planergy

Planergy is a cloud-based solution that can help businesses to streamline their procurement lifecycle. 

In addition, it allows its users to generate order requests through forms with pre-populated data such as item catalogs, agreed payment terms, delivery locations, and more. 

To see their pricing, click this link here.

4. ProcureDesk

ProcureDesk offers clear procurement analysis and valuable insights for the Chief Procurement Officer (CPO). Sourcing managers gain complete control over categories, enabling for a more effective decision-making.

Moreover, buyers may benefit from easy access to catalogs and simplified ordering processes. This creates a user-friendly experience that enhances efficiency across the procurement team.

To view their pricing list, click here.

5. Kissflow Procurement Cloud

Kissflow Procurement Cloud is a complete procurement system that lets you create purchase requests and orders, handle invoices, and manage new vendor relationships all in one cloud-based platform.

Kissflow offers procurement teams flexibility through its low-code/no-code platform, allowing for customized workflows and tailored solutions.

Indicated here is their pricing.

6. Procurify

Procurify helps your organization manage and reduce costs while improving efficiency, freeing up time to focus on more valuable projects.

This platform controls all types of spending with standardized workflows and automation tools that ensure compliance with internal policies, reducing rogue expenditures. It also consolidates procurement and accounts payable into a single solution cuts costs and enhances visibility and control over organizational spending.

To see their pricing, click here.

7. Vendr

Vendr helps you improve every part of the SaaS purchasing process, including procurement, IT compliance, and supplier relationship management.

With Vendr, you can easily spot overlapping supplier costs and find ways to consolidate licenses, reducing your overall SaaS spending. The platform provides price benchmarks for better contract negotiations and offers customizable approval workflows to streamline purchasing while ensuring compliance.

To see their pricing, simply click here.

8. GEP Smart

GEP Smart allows you to digitally transform your entire procurement process by using smart, unified procurement software.

This platform utilizes a wide range of procurement tools and integrates them into one system to eliminate the need for separate and stand-alone procurement software. It provides clear procurement analysis and actionable insights to the CPO, giving sourcing managers complete control over categories, and offering buyers easy access to catalogs and simplified ordering.

To see their demo, you can click here.

9. Coupa

Coupa accelerates sourcing impact to maximize value by finding the right suppliers, making smarter buying decisions, and utilizing employee purchases to create an efficiency multiplier that saves you money.

To see the list of their products, click here.

10. Spendesk

Spendesk helps you make smarter spending choices without increasing your workload. Furthermore, Spendesk replaces the complicated and bureaucratic process of managing company finances with a comprehensive spend management solution.

It helps boost team productivity and collaboration and offers businesses greater visibility and control, allowing the finance team—and everyone in the company—to focus on strategic initiatives for business growth.

Click here to see their pricing.

The Advantages and Disadvantagesof a Procurement System

A procurement system, like all other procurement processes and tools, also has its own set of advantages and disadvantages.

To help our dear readers learn each advantage and disadvantage, we at Procurement Tactics categorized each value in this neat little table. This is also to help prevent confusion as sometimes, a long wall of text can be quite overwhelming to read.

So without further ado, here’s a table on the advantages and disadvantages of a procurement system:

Conclusion

A well-planned procurement system stands as a cornerstone for efficient business operations, ensuring optimal utilization of funds and resources.

Through a robust procurement system, businesses can achieve improved speed, better visibility, enhanced transactions, improved supplier relationships, and guided buying, ultimately contributing to overall operational efficiency.