18 Best Procurement Management Software in 2021

What is Procurement Management Software?

Procurement management software is used to manage the purchase processes inside an organization. This includes initiating and completing processes related to purchasing orders, product ordering, invoice sharing and bill payment. Basically, procurement management software is used to streamline the purchasing process of products and services. This software makes the administration process easy and saves a lot of cost and time.

All procurement-related information can be managed with procurement management software. It helps collect and analyze procurement-related details to streamline activities related to purchase and orders.

Preventing spot shortages and executing financial transactions are as easy with cloud procurement software as verifying purchase orders. Managing the online ordering process, generating purchase orders, matching invoices with receivables and paying bills electronically are key functional areas of the software.

Procurement managers can track and manage different vendors efficiently and stay updated about the terms of the contract, rates of procurement, negotiated price, etc.

Most Common Features of Procurement Software 

Procurement software solutions support comprehensive features for managing multiple vendor-related processes such as purchasing, supplier control and sourcing. The platform ensures that you maintain a good relationship with vendors with pre-defined terms of service, negotiated rates, and so on.

Supplier management: Online procurement management system offers supplier management capabilities necessary for handling the entire supplier lifecycle. The best procurement software is equipped to help with performance evaluations for different suppliers to ensure that they are abiding by the terms of service. Procurement software helps with identifying and selecting the best suppliers for your business.

Requisition management: Requisition management is necessary to create, track and process purchasing requests in an organization. Purchase management systems help with requisition management through process transparency, inventory optimization and actionable insights. Requisition management is critical for mitigating risks associated with doing business.

Contract management: Cloud procurement software handles the entire contract lifecycle by linking together systems covering sales, legal, procurement and other stakeholders. The centralized repository manages contract administration by tracking savings, compliance and performance. The feature supports automated document creation aside from an easy contract data flow for efficient work processes.

Sourcing: Procurement software helps companies with supplier intelligence and collaborative authoring. While suppler intelligence is used for finding the best suppliers available, collaborative authoring offers templates, wizards and flexible forms for building quotes/multi-line proposals. The sourcing dashboard attached to the procurement management system offers a 360-degree view of different sourcing activities.

Invoice Processing: The best procurement software solution helps capture data related to discounts, payment terms, mode of payment, etc. and updates these details automatically on the electronically generated invoice. It further helps generate purchase orders, match purchase orders with the invoice and optimize your invoice processing workflow.

Purchasing Software: Automating processes like creating purchase orders, streamlining negotiated prices and ensuring compliance of policies, everything is done by purchasing software. This software can also generate purchase orders with no manual or physical intervention.

Procurement Analytics Software: Procurement software also has the option to provide analytics for different domains. With the analytics tool, one can make exact and accurate decisions. Analytics is also useful to make data-based purchase decisions at competitive prices.

Spend Management Software: The procurement management system also acts as a spend management software which includes activities like sourcing, purchasing, and payments. With this software, organizations can control how much they spend on each division.

Procurement and Inventory Management System: Procurement software can also be used as inventory management system. One can keep records in an organized manner, in multiple formats. This software also allows agents to monitor relevant information. And the best part is all this can be automated. The procurement software includes information about the products, their specifications, date of acquiring, last used and number of items present in stock. The information is updated automatically to ensure that the data present is accurate.

Procurement SaaS: Procurement SaaS is a new feature in procurement software. E-procurement solutions offer security with no hosting costs. Data that is stored on the cloud is actually owned by the customer but hosted by the provider. Automatic updates are provided and there is no need for customers to have any particular hardware specifications.

What are the Core Functionalities of Procure to Pay Software

Controlling procurement processes for staying on top of all orders is guaranteed by the online procurement management system. All these are made possible by crucial functionalities offered by the best procurement software.

Order and purchase spend management: The best procurement software provides order and purchases management capabilities to reduce the administrator's workload. The centralized catalogue system helps with efficient order management processes whereas purchase management helps with insights into all transactions as well as commercial compliance.

Improved supplier management: The best procurement management systems are beneficial for handling the entire supplier lifecycle process including their performance, general information and associated risks. The unified record helps with segmentation and onboarding processes, while at the same time helping procurement teams access the entire supplier data.

Compliant purchasing: Purchase management software's real-time purchase tracking abilities help reduce both operating costs and cycle time. Compliant purchasing built-in within this feature helps streamline both purchase order operations and purchasing requisitions. This feature helps organizations make direct purchases from authorized suppliers every time the need arises for quick buying.

Standardized contract lifecycle: Procurement software is used by contract reviewers for checking deviations in a contract during the early negotiation stage. This procedure highlights risks that may be found and suggest required changes to make it foolproof. Businesses also receive automatic notifications and alerts every time a contract is about to expire so that the possibility of delay is reduced and there are timely renewals.

Benefits of Procurement Management Software

Business operations are simplified with smart procurement tools. Smart sourcing along with intelligent purchasing decisions are core benefits of using the software.

Transparent spend analytics: The transparent spend analytics feature of procurement management systems are critical for improving a company's business strategy. With this option, it is easy to identify areas where you can cut costs in terms of procurement. You can also use this feature for assessing best deals that have been made so far. Such data helps businesses negotiate better for upcoming deals.

Streamlined procurement cycle: The entire procurement lifecycle starting from managing contracts to sourcing suppliers as well as handling purchases can be managed with procurement management software. You can further use the software to elevate the performance of the procurement team, enhance the business's strategic reach and accelerate digital transformation.

Efficient collaboration with suppliers: Procurement software solutions offer a supplier database for searching and analyzing best suppliers available. The predefined registration procedure helps with streamlined onboarding of new suppliers, their enrolment and categorization. You can collaborate easily with all suppliers by checking their past performance records and detailed profiles before finally selecting them.

Real time sourcing auctions: Best procurement software solutions would provide you with safety nets, extension rules strategies for organizing successful auctions. Just the way you would create and forward a request for proposal, sourcing auctions are similar processes deployed for choosing the best supplier. All you got to do is create an auction and enable the real-time bidding process to start the process.

Inventory management: Procurement software solutions are used for tracking receipts, movement of stock, transfers and issuance. As soon as the stock gets low, the software would send quick reminders for replenishment. Direct fulfillment and buffer stock are the other capabilities offered by the online procurement management system.

Budget control: Monitoring the expenditure of all sourcing projects and streamlining these is easy with the purchase management system. The application centralizes the financial data for easy purchases as well as approval workflows. With the best e-procurement software, you will not just link budgets to spending but also look after different budget types such as capital, operating and project/contract-based.

Things to Consider When Buying Procurement Software

A range of functionalities suited for businesses of all sizes is what defines procurement software solutions. Let us have a look at a few metrics that should be considered for choosing the best procurement software.

Standard operating procedure: Standard operating procedure or SOP is mandatory for carrying out complex operations. Procurement system software documents the standard operating procedures for all such complex activities so that you get quality output. This feature also reduces the possibility of miscommunication and ensures uniform performance across departments.

Approvals and requisitions: Simplify approval processes using cloud procurement software configurable workflows and email-based notification system. Through requisition support, you can simplify complex approval processes and follow the automatic routing procedure.

Supplier audits & second sourcing: Supplier audits and second sourcing help businesses work towards the outcome they are expecting from their daily operations. For the purpose, supplier audits are being used to verify targets and expectations that have been met so far. This helps ensure that the quality is never compromised. Second sourcing is a kind of insurance system which is relied upon for meeting unexpected situations.

Categories management: Purchase management systems categorize products into respective categories based on characteristics and traits. This database of products is available to departments across your office.

Procurement Management Software Solutions Cost

Procurement Management Software Price List In India
Standard	Starting Price	₹1,000.00
Advanced	Starting Price	₹7,800.00
Premium	Starting Price	Price On Request