Best Procurement Management Software: Top 13 Picks in 2024

When a company builds its plan for success, one agenda that gets hidden in a sea of line items is optimizing its procurement management. In a complex and dynamic landscape, progress isn’t always only measured with external goals. Enforcing internal controls that build resilience in the process and a profitable business situation is also termed progression. By deploying a robust automated procurement management software, businesses can streamline their expense management and enhance productivity. This, in turn, can give them a significant advantage over their competitors. It gives the whole process an upper hand, wherein stakeholders can derive considerable value by making the procurement management system more outcome-driven.

Procurement teams are increasingly utilizing technology to discover ways of maximizing value while working with resources. Among the solutions being explored by leaders are artificial intelligence and automation. By implementing procurement management software businesses can effectively harness the capabilities of these technologies to streamline their procurement process and attain outcomes.

In this blog post, we give you an overview of procurement management systems highlighting the features of procurement management software and present a list of the top 13 companies in the market. In today’s ever-evolving business landscape, this knowledge will equip you to elevate your procurement management process, achieving success.

What is procurement management?

Procurement management is the process of managing the entire cycle of acquiring a product, material, and services needed for the efficient running of business operations. Along with a detailed list of activities that entail process management, it also involves constant collaboration with multiple stakeholders and departments and management of external vendor relationships. All of this and more, when done efficiently, ensure businesses a competitive advantage.

The B2B procurement process, which involves finding, ordering, and buying goods or services, is often manual. It includes sharing heavy data, items like purchase requisitions, orders, and other relevant information with various departments to complete the procurement process. There is a huge likelihood that the shared items are either misrepresented, ignored, or completely misunderstood with manual processing, resulting in an increased cost of procurement. But that’s not it. There are more prevalent challenges one needs to consider about this resource-intensive process.

Challenges in Procurement Management

Some of the critical challenges in the traditional procurement management process are:

• Risk mitigation – A laborious and decentralized procurement function hinders a company’s ability to spot red flags associated with supplier risks, market fluctuations, vendor fraud, and delivery risks. The risks keep increasing since procurement teams don’t have the means or the time to conduct due diligence. Add to that the gamble one must play when onboarding new suppliers and changing manufacturing process demands without any insight.

• Fragmented dark purchases – Without automation, tracking and managing spending behavior and patterns across departments is impossible. For many teams, it is also challenging to stop purchasing outside the defined purchase requisitions, which can quickly become expensive for the organization.

• Poor transparency – Convoluted processes lack visibility in the supply chain, lead to difficulty in tracking progress, identifying bottlenecks, and making informed decisions.

• Inaccurate data – Without a centralized data solution, handling vast volumes of data and sharing relevant information becomes tedious. Without automation, poor transparency in data handling can also result in increased procurement costs and data discrepancies.

• Inadequate supplier relationship – Suppliers and vendors play a significant role in establishing the foundation of any organization. However, when there is lack of communication and collaboration between the stakeholders it can lead to miscommunication, misunderstandings, and missed opportunities.

• Supply chain disruption– One of the biggest hurdles in procurement management is dealing with supply chain disruption. It is expected to be marred with inaccurate data, making it difficult for procurement teams to proactively address supplier issues.

Procurement management requires businesses to stay up-to-date with the latest technologies and industry trends. It is critical to understand, by utilizing procurement management software businesses can overcome the above mentioned challenges successfully.

A procurement management software builds business for success as it provides them the ultimate solution of automating the procurement management process, which reduces the overall operational cost of the business, improves their bottom line, and maintains a competitive edge in the market.

What is procurement management software?

Procurement management software improves the performance of the procurement process by allowing businesses to digitize and automate their entire source-to-pay function. Integrating supplier management, sourcing, PO management, and risk management into a single procure-to-pay platform eliminates the burden of scattered and extensive laborious work. The more efficient and better your procurement management software, the more sustainable and scalable the business gets.

How Does Procurement Software Benefit Organisations?

As per a 2024 Voices of Sourcing report prediction released by a global sourcing solutions firm, Keelvar, 2024 will be a year of efficiency for procurement teams. It says 59% of procurement and sourcing teams plan to adopt advanced technologies, with Artificial Intelligence (AI) and automation technology topping the list. With 63% reporting increasing workloads and 38% experiencing a flat or declining workforce, it’s not surprising that procurement teams are looking to explore new ways of driving value and maximizing their resources. Here’s a list of benefits the procurement project management software offers:

1. Standardization of the process

Implementing procurement software provides teams with readily available templates for documents, including purchase requests, purchase requisitions, purchase orders, approval orders, contracts, etc., that saves time for the workforce and eliminates human input errors. Various procedures can be automated or managed with alerts and reminders that put controls into place. Procurement management software also improves communication and collaboration between multiple departments, enabling resources to work on more strategic tasks.

2. Integration with ERP

The best procurement management software technology on the market would be futile to you if it doesn’t integrate with your existing tech stack. A cloud-based procurement software offers the benefit of easy integration with your current ERP system to standardize the operation and enable employees to follow a straightforward process.

3. Improved scalability

Cloud-based procurement process management software removes reliance on outdated paper-based, time-consuming, fragmented operations by providing feature-rich, purpose-built solutions. It bridges the otherwise expansive gap between data, people, and technology, thereby saving time, money, and resources. Procurement teams can buy supplies from anywhere in the world as easily as they do from a local supplier, irrespective of global currencies, languages, and logistics. The automated system also eliminates or minimizes staffing requirements, thus making scalability a reality.

4. Improvement in spend control

The automated procurement management system instantly reduces processing time and improves accuracy. High-volume tasks and time-consuming procurement steps are simplified, paving the way for cost-cutting, optimized spending, and saving processes. The procurement teams can develop strategic payment options based on a clear view of funds availability in real time. Dark spending and overspending, a bane of the procurement process, are also eliminated with the automatic three-way matching of purchase orders and invoices. This allows business leaders to maintain financial control.

5. Optimization of supply chain

Procurement project management software breaks down the barriers between systems and stakeholders and increases supply chain resilience. The software processes massive volumes of data to generate data analytics that define supplier behavior; the procurement teams then use this data to improve any oversight related to suppliers, discontinue unreliable vendors, and maintain strong relationships with reputable suppliers. Automated and insightful supply chain management enhances responsiveness and customer satisfaction.

6. Improved inventory governance

The inventory management team can also benefit from an automated procurement tracking software feature. By automating the entire inventory flow and gaining real-time tracking of inventory levels, procurement teams earn inventory control with insights into excess inventory or production halt due to stock issues, thereby reducing a company’s working capital. Reporting and analytics further automate the arduous task of data entry and report generation. Integration with sales and purchasing systems further boosts efficiency, reduces lead times and improves overall inventory management. All of this helps procurement managers maintain a perfect balance in inventory management, ensuring the smooth running of business.

What should you look for in a procurement management tool?

The procurement management solution market is replete with multiple procurement management tools, making it highly competitive. Choosing the most suitable procurement management tool for your system, thus can become a daunting task. Therefore, it is crucial to identify the important features that the procurement management tool must possess that aids business leaders in making informed decisions. By doing so, one can select the right procurement management solution that will effectively meet their needs.

User-friendly interface

A well-designed user interface (UI) is a must in procurement management platform. It is of utmost importance that the UI is user-friendly, requiring minimal or no learning curve, and allows procurement teams to undertake tasks quickly and efficiently. Moreover, pre-configured approval workflows, terms and conditions, and automated suggestions for the lowest possible pricing are designed to control spend and reduce costs. This feature enables businesses to automate the procurement cycle, reduce manual intervention, and boost efficient decision-making.

Customization solution

In the realm of software solution providers, a one-size-fits-all solution does not exist. As businesses become increasingly complex and their needs evolve, a customization feature within a procurement management platform becomes completely indispensable. This feature permits the ability to add or remove functionality as needed, modify existing features, and addresses specific goals, processes, operational requirements, and individual needs. A tailored and scalable solution is often better equipped to meet the unique requirements of businesses.

Easy Integration

An ideal procurement management solution is optimized for performance. Its integration capabilities bridge the gap between a company’s ERP systems and procurement operations, automating these critical processes to save time, reduce errors, and accelerate the procurement cycle.

Vendor management

The procurement workflow software feature simplifies supplier background checks, RFQ reviews, and follow-up in case of missing information or documents. This ensures that transactions only occur with approved suppliers. The procurement workflow software establishes a robust supplier base by streamlining the process of onboarding, managing, and analyzing suppliers across multiple departments and categories. Furthermore, the software proactively manages supplier relationships by simplifying them. As a result, it significantly benefits organizations by reducing risk, improving compliance, and achieving operational excellence.

Contract management

Automating the process of contracts management enables businesses to produce high-quality contracts within a shorter time frame. By doing so, one can have a comprehensive view of all the contracts and keep costs under control. The automated system will examine these contracts, compare them to predefined templates, and highlight any deviations in terms and conditions. By detecting breaches of terms and conditions, as well as receiving early notifications of expiring contracts, procurement project management software provides teams the ability to prevent potential risks.

Purchase management

Integrating a cloud-based procurement management system can significantly enhance a company’s procurement management process. It has the ability to facilitate streamlined operations and ensure compliance with negotiated pricing and policies. The system automates the generation of purchase orders from authorized requisitions, eliminating the need for manual intervention. Furthermore, it offers your procurement teams real-time updates regarding exceptions, status, and critical actions. The system is also equipped with communication tools to collaborate with suppliers efficiently. It helps achieve a more efficient, cost-effective, and compliant procurement process by leveraging this system.

Performance management

Utilizing data analytics for decision-making is a non-negotiable feature of procurement management software. Automating reporting and analytics is crucial in eliminating the burdensome task of inefficient and error-prone report generation. This, in turn, improves accuracy and consistency while reducing the workload. One can gain unique insights into procurement spending across the business by accessing and analyzing a range of reports.

Best software for procurement management in 2024

Here is a procurement management software list of top 13 companies:

1. Procol

Founded in 2018, Procol is India’s fastest-growing procurement technology company that has been securely deployed at many $1B global companies, It has helped procurement teams reduce costs, digitize procurements, improve compliance by replacing emails and excel workflows with the world’s most easy-to-use and secure platform managing a spend of ₹5000 Cr+. Procol has various unmatched features and capabilities, that make it the best procurement management software for your system.

What works for Procol:

• Next-generation platform to get all your spend under control and ultimately gain 2-10% cost savings
• Saved 15,000 hours by automating tedious procurement tasks for 100+ global enterprises
• $100M+ generated savings by Procol customers
• Empower teams with a dedicated mobile-first approach. It ensures procurement professionals have the flexibility they need to drive efficiency wherever they are.
• Businesses gain the flexibility of customizable workflows and templates that meet precise organizational need
• Gives access to 50,000+ suppliers registered, onboarded globally

  Intuitive interface and unmatched efficiency ensures quick setup

• Streamlines capex sourcing for maximum efficiency
• Integrates seamlessly with ERP systems to smoothen procurement operations

Limitations of Procol:

• The payment feature is still under development

Rating:

Procol is rated 4.9/5 by trusted enterprises on G2 and has been featured by Forbes.

Explore Procol

2. Procurify

Founded in 2011, Procurify is an Intelligent Spend Management company. They help organizations centralize all their purchasing information, enabling users to create, track, and report on all requisitions, purchase orders, and expenses. It is well-suited for small to medium-sized businesses, offering a straightforward, all-in-one pricing model starting at USD 2,000 per month ( for medium companies).

What works for Procurify:

• Ease of use with minimal learning curve and seamless navigation between features
• Provides custom approval workflow templates to suit varied business needs
• Quick communication with in-app feature
• Efficient and swift ordering or supplies with ready-made templates

Limitations of Procurify:

• Lacks inventory management feature
• Limited analytics and reporting visibility that could help organizations create procurement strategies
• Difficulty in integration with other solutions apart from ERP

Rating:

4.6 / 5 on G2

3. Precoro

Founded in 2015, Precoro is a procure-to-pay system aimed at small and mid-sized businesses. Although Integration with ERP systems is a challenge, this cloud-based procurement and AP automation solution is designed to streamline purchasing processes and improve collaboration amongst stakeholders with limited analysis. Its plan fits all sizes, including for less than 20 users- $35/user/month billed annually.

What works for Precoro:

• Enables paperless and automated RFP and RFQ
• Provides tailored approval workflows suiting business needs
• Easy to use system with limited training
• Provides real-time customized reports
• Smooth and efficient purchasing process with transparent budget management tool

Limitations of Precoro:

• Inventory module has limited functionality
• Search tool is in nascent stage, hence difficult to use
• Integration with accounting solutions and ERP such as Netsuite, SAP, Quickbook is difficult
• Data import feature and ease of creating and deleting purchase orders need improvement

Rating:

4.7 / 5 on G2

4. Coupa procurement

Founded in 2006, Coupa offers a unified platform that allows organizations to see and manage all their spending in one place, simplifying purchase requisition, order processes, and real-time tracking. It is well-suited for medium to large-sized companies and is relatively more expensive compared to other procurement solutions. Coupa does not provide public information on pricing.

What works for Coupa:

• Easy management of purchase orders
• Inventory management feature helps keep track of stock and on-hand inventory
• Budget checks and approvals help businesses cut down on overspending
• Tracking and reporting feature are manageable

Limitations of Coupa:

• Complicated navigation and difficulty in getting the hang of the platform
• Process of payment is difficult
• Customer service only possible via chat

Rating:

4.2 / 5 on G2

5. Kissflow

Founded in 2012, Kissflow is a low-code platform that helps build, deploy, and manage enterprise-grade apps while accelerating development time. It helps simplify, expedite, and streamline procurement and approval processes, all from a centralized portal. While the platform is comprehensive, contract and asset management are in the early stages. Kissflow pricing Starts at $1,990/month.

What works for Kissflow:

• No extensive technical expertise need to set up and install
• Streamlines workflow by automating repetitive tasks
• Variety of pricing packages to suit varied business types

Limitations of Kissflow:

• Procurement managers will need proper training to understand the platform, features and navigation
• Transferring data to other systems or software for further analysis or reporting is challenging
• Limited analytics and reporting feature on big orders

Rating:

4.3 / 5 on G2

6. SAP Ariba

Founded in 1996, SAP Ariba is a known e-procurement and supply chain management solution provider suitable for large and midsize companies. Although it has limited reporting capabilities, SAP Ariba provides a comprehensive suite of procurement applications, from sourcing, contract management, purchasing, and invoicing to spend management. SAP Ariba does not offer public pricing information.

What works for SAP Ariba:

• Easy to manage global spending and compliance on one platform
• Constant introduction of new features into the software
• Intuitive use- interface
• Seamless integration with ERP

Limitations of SAP Ariba:

• Inefficient customer support
• Complexity in navigating the software, requires a learning curve
• Reporting and analytics feature is not so advanced
• Lack of real-time notification

Rating:

4.1 / 5 on G2

7. Control hub

Founded in 2020, Controlhub specializes in simplifying the purchasing process for businesses, especially for the hardware sector. It emphasizes automation, real-time data tracking, and easy integration with existing procurement management systems. Controlhub’s pricing can be tailored as per the requirement.

What works for Control Hub:

• Range of payment options that integrate seamlessly with company policies
• Easy integration with ERP’s like Netsuite, Quickbook
• Effective spend management feature on the platform
• Provides automated workflows

Limitations of ControlHub:

• Collaboration restrictions
• Offers limited features that suit a vast variety of industries
• Customer support requires improvement

Rating:

Limited ratings on G2

8. GEP SMART

Founded in 1999, GEP SMART offers tools for direct procurement, bill of materials management, source-to-contract, and more. ‍While effective for larger companies, it could improve by offering more tailored features for small businesses. GEP Smart does not provide public pricing information.

What works for GEP SMART:

• Smooth integration with SAP
• Provides end-to-end source-to-pay tasks like spend analysis, strategic sourcing, purchase order processing, and invoice
• Attractive user interface
• Great partnership and support

Limitations of GEP SMART:

• Slow loading speed as compared to other software
• Slow turnaround time for custom enhancement
• Difficulty in navigation
• Expensive for smaller organizations as compared to other procurement management tools

Rating:

4.4 / 5 on G2

9. Netsuite

Founded in 1998, Netsuite is a centralized platform for vendor-buyer communication. Its workflows help streamline procurement activities and are best suited for medium to large-sized companies. Pricing and plan vary based on business size and needs.

What works for Netsuite:

• In-built integration with all Oracle and Netsuite ecosystem products
• Endless customization opportunities
• Overall boost in day-to-day operations with automation

Limitations of Netsuite:

• More suitable for large organizations
• Difficulty in navigation and the system is not intuitive
• Have to be tech-savvy to understand and apply the features on the platform

Rating:

4.0 / 5 on G2

10. Oracle Procurement

Founded in 1999, Oracle Procurement Cloud is a fully integrated, cloud-based source-to-settle procurement management tool that provides customers support with direct and indirect sourcing, automating purchase order creation from approved requisition, and much more. Oracle does not provide public pricing information.

What works for Oracle:

• Offers built-in collaboration, editing and approval workflows feature with guided authoring
• Easy to manage and track the entire contract lifecycle
• Enables supplier collaboration and stronger vendor relationships

Limitations for Oracle:

• UI is outdated and needs improvement
• Minimal customer support
• Limited flexibility for customization

Rating:

4.2 / 5 on G2

11. Jaggear One

Founded in 1995, Jaggear One is a cloud-based procurement management platform for businesses looking to streamline and automate the entire source-to-pay cycle. It has a One-Stop Shopping feature that makes it easy for procurement managers to view and compare items from different catalogs in one place. JaggearOne does not provide public pricing information.

What works for Jaggear One:

• One-stop solution for businesses with analytics and spend management needs
• Simplified dashboard
• High responsiveness rate and customer support
• Wide range of applications suiting varied business needs

Limitations for Jaggear One:

• Limited integration abilities
• Restricted comprehensive data, lacks intuitiveness
• Issues with data breach and compliance

Rating:

4.4 / 5 on G2

12. Vendr

Founded in 2018, Vendr empowers SaaS buyers by providing them a procurement management platform to manage their software as a service (SaaS) purchases. This procurement management tool includes detailed negotiation advisory, contract analysis and providing oversight and control over an organization’s SaaS expenditures. Vendr offers 3 pricing editions, from $36,000 to $120,000 basis budget and needs.

What works for Vendr:

• Centralized dashboard to manage purchase, renewals and spend data
• Provides due diligence on legal and security compliances
• Customizable workflows as per business needs

Limitations for Vendr:

• Suitable for large organizations
• Gaps in user interface making it difficult to adopt
• Limited multilingual services

Rating:

4.6 / 5 on G2

13. Corcentric

Founded in 1996, Corcentric is a procurement management tool that manages source-to-pay, order-to-cash, payment processing and everything in between. The team is adept at handling procurement on the organizations behalf with managed services. Pricing not available.

What works for Corcentric:

• Offers flexibility and optimization in workflows
• Intelligent Applications offers easy integration and automation of process
• Offers services related to handling procurement on behalf of the business

Limitations of corcentric:

• Complexity in navigating the platform with bugs slowing the process
• Customer support is not proactive

Rating:

3.4 / 5 on G2

Conclusion

Organizations are increasingly adopting automation solutions to deal with procurement problems. However, before implementing a procurement software system, it is essential to understand how it can add value to an organization. While some procurement team members may be reluctant to change, giving them an easy to set up and navigate software that requires minimal training can be one way of gaining their support.

A cloud-based procurement management solution significantly reduces costs while improving the quality of process and supplier relationships. One of the most visible benefits of procurement management software is that it brings all departments, scattered across the organization, to work together in making procurement decisions. The automation system also supports various optimization models, enabling continuous process improvement, increasing return on investment (ROI) and reducing the total cost of ownership (TCO).

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