Procurement software is a type of

business software Business software (or a business application) is any software or set of computer programs used by business users to perform various business functions. These business applications are used to increase productivity, measure productivity, and perf ...

which helps to automate the organisational purchasing functions. Software functions include issuing and evaluating tenders, raising and approving

purchase order A purchase order is a commercial document and first official offer issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services. It is used to control the purchasing of products and services from extern ...

s, selecting and ordering the product or service, receiving and matching the

invoice An invoice, bill or tab is a commercial document issued by a seller to a buyer relating to a sale transaction and indicating the products, quantities, and agreed-upon prices for products or services the seller had provided the buyer. Pay ...

and order, and payment of invoices, enabling the procurement department to see everything that is ordered, ensure that nothing can be ordered without correct approvals, and secure the best value by combining several orders for the same type of good or even getting suppliers to bid for the business. A buying organisation's choice of software may be driven by the particular strengths offered by each individual system and the number of vendors available through them. A multinational or other large organization will use a shared procurement system to take advantage of

economies of scale In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the amount of output produced per unit of time. A decrease in cost per unit of output enables a ...

to drive down the cost of purchases. Whilst some services are available to purchase through automated systems, the key strength of these systems lies in the procurement of commodities that are much easier to standardize.

Benefits

The key benefit for organisations using procurement software include ease of administration, access to information, and potential long-term cost savings. Having a single interface for procurement related management information cuts down the time and effort required to monitor organisational spending. The use of such software also allows procurement managers to control the vendors used by the wider organisation so all employees take advantage of negotiated rates and other terms of service. Notable companies in the market include

GEP SMART GEP may refer to: * Gene expression programming * Giant Electric Pea, a British music label * Gifted Education Programme (Singapore) * Global Environmental Politics, a scholarly journal * Global Entrepreneur Programme, of the UK government * Good ...

Oracle An oracle is a person or agency considered to provide wise and insightful counsel or prophetic predictions, most notably including precognition of the future, inspired by deities. As such, it is a form of divination. Description The wor ...

SAP Sap is a fluid transported in xylem cells (vessel elements or tracheids) or phloem sieve tube elements of a plant. These cells transport water and nutrients throughout the plant. Sap is distinct from latex, resin, or cell sap; it is a separ ...

Coupa Coupa Software is a global technology platform for Business Spend Management (BSM). The company is headquartered in San Mateo, California with offices throughout Europe, Latin America, and Asia Pacific. Coupa helps companies gain visibility in ...

Basware Basware Corporation (founded 1985) is a Finnish software company selling enterprise software for financial processes, purchase to pay and financial management. The company has operations in more than 70 countries worldwide. Basware’s markets ...

Infor Infor is a multinational company headquartered in New York City that provides industry specific, enterprise software licensed for use on premises or as a service. , Infor's software had 58 million users, and 90,000 corporate customers in 20 ...

and Workday.

Common features of procurement software systems

* Requisitions – Creation of a purchase order with line items to be fulfilled by a vendor. Automated sending via fax or email. * Vendor follow up – Automated, or reminders to follow up with vendors to confirm purchase orders. * Receiving of goods or services – Maintaining a physical

inventory Inventory (American English) or stock (British English) refers to the goods and materials that a business holds for the ultimate goal of resale, production or utilisation. Inventory management is a discipline primarily about specifying the sh ...

of goods. * Financial settlement – Creation of financial and/or inventory-related transactions as goods are physically received. *

Document management system A document management system (DMS) is usually a computerized system used to store, share, track and manage files or documents. Some systems include history tracking where a log of the various versions created and modified by different users is r ...

– To

archive An archive is an accumulation of historical records or materials – in any medium – or the physical facility in which they are located. Archives contain primary source documents that have accumulated over the course of an individual ...

relevant documents. *

Electronic signature An electronic signature, or e-signature, is data that is logically associated with other data and which is used by the signatory to sign the associated data. This type of signature has the same legal standing as a handwritten signature as long as ...

– Tool to sign documents online.

Benefits

Common features of procurement software systems

References

Further reading