Procurement software was introduced to the public in the 2000s in an attempt to simplify International Business Machines’ complex procurement process. A few years later, businesses can now choose from a myriad of procurement solutions.
But what makes good procurement software? What features should you look for when selecting procurement software for your business? Not knowing the answers to these questions can prevent your business from choosing and maximizing the right procurement software.
Fortunately, we’re here to help. We’ve compiled a list of features every procurement software should have. Use the information below to narrow down your options fast.
- Fast Deployment
Embracing procurement software usually takes months or even years to deploy successfully. Fortunately, you can shorten the deployment by choosing cloud-based software.
For example, ProcureDesk and Precoro are two successful procurement software that offer accounting solutions. They have similar features, but Procuredesk is better than Precoro when it comes to deployment because it offers both mobile and web access.
Cloud-based procurement software is scalable, easy to maintain, and cost-effective. Your business will benefit from cloud security and regular software updates.
- Simple, Easy-To-Use Interface
The importance of an easy-to-use interface in procurement software should never be estimated. Your business will spend more resources in training your employees if you choose to use overly-complicated software.
When choosing procurement software, remember that less is more. Simplified software means a more fluid transition and lessens the risks of disrupting your business’s daily operations.
One rule of thumb to follow is to look for procurement software that requires minimal user training. The software’s ease of use is the number one factor that drives successful adaption — the simpler the software is, the easier it’ll be for your team to adjust.
- Communication
Communication is crucial in businesses. Stakeholders should be in the loop for updates concerning the procurement process. With this in mind, look for procurement software with the following features:
- Automated workflows
- Multi-level approval routing
- Collaboration tools accessible via a mobile app and website
The features listed above enable staff to receive notifications and alerts so they can review and expedite approvals regardless of their location. Stakeholders should also receive notifications and alerts whenever there is progress in transactional activities. This results in better communication across all levels of the business.
The procurement software should give access to purchasing teams, managers, and users depending on their authorization level. This will empower each individual to make better spending decisions and make it easier for them to justify their decisions.
- Budget Insight and Control
How you manage your finances can make or break your business — and not being able to see your business’s finances in a bigger picture will prevent you from making significant, informed purchasing decisions.
Gain better visibility into your business’s financial health by choosing procurement software with budget insight and control features. With these features, you can track your business’s spending, compare projects against budgets, and generate reports that allow you to see budgets vs the actual amount spent.
Budget insight and control provide data and reports on your business’s past, present, and future spending. Having access to this information will prevent you from making bad decisions that can cost your business thousands or even millions of dollars.
- Time-Saving Automation
One of the cornerstones of successful procurement software is driven by automation. Software that enables your business to automate mundane, repetitive tasks can increase your business’s efficiency and save time.
Ideally, you should choose procurement software that automates the following tasks:
- Centralized communication channels
- Compliance activities
- Connect expense data
- Place new and repeat orders
Automated procurement software also reduces the burden on your procurement team, allowing them to take on bigger, more significant responsibilities. It’ll also empower users to be more accountable and efficient in their respective tasks.
- Auditability and Risk Management
Audits are important in businesses as they provide credibility to financial statements and give shareholders confidence that accounts are accurate. Improve your business’s auditing process by using procurement software with audit trails.
Audit trails that detail user and transactional activities promote transparency, leading to accountability among users and trust from shareholders. Over time, this can significantly improve your branding as the general public will see your business as legitimate and financially stable.
Make Sound Decisions
By investing in procurement software that ticks all of the boxes above, you’ll have peace of mind knowing that your business now has a tool to help maintain budgets, identify saving opportunities, make purchases at the lowest price, and eliminate rogue spending.