What is Procurement Software?
Procurement software is business software that helps to automate the purchasing function of organizations. Activities including raising and approving purchase orders, selecting and ordering the product or service, receiving and matching the invoice and order, and paying the bill is handled electronically, enabling the procurement department to see everything that is ordered, ensure that nothing can be ordered without correct approvals, and lets them get the best value by combining several orders for the same type of good or even getting suppliers to bid for the business. Buying organisation's choice can be driven by the particular strengths offered by each individual system and the number of vendors available through them. A multinational or otherwise large organization will use a shared procurement system to take advantage of economies of scale to drive down the cost of purchases. While traditionally most e-procurement software systems have been designed for larger organizations, there are now also systems available for the SMB market, such as the Free-Procurement Project and an open source alternative by ProcuMan. 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 standardise.