The Best Procurement Software for Small Businesses
Small businesses have different needs from global enterprises. Yet no matter how small, they still have to deal with procurement, or the sourcing of goods and services, in order to run. Fortunately, low cost and free procurement software makes it possible for companies of all sizes to optimize their purchasing.
What is Procurement Software?
Before you get procurement software for your business, you need to know what it is and what it can do. In business, procurement refers to any acquisition of goods and services for work purposes. This can mean ordering new machinery for a manufacturing plant or buying standard office supplies for the accounting department. With such a wide range of purchases covered by procurement, it’s no wonder many businesses rely on software to streamline the process.
Procurement software automates purchase orders for goods and services related to your business. Use real-time tracking to stay updated on: purchase quantities, item or service purchased, delivery schedules, payment terms, and overall costs. And you can manage your new and existing supplier and vendor relationships to get better deals on goods over time.
Sometimes referred to as e-procurement, and even mistaken for the more simplistic purchase order software, you can use procurement software to ensure every order made by your small business is fully authorized and in the budget.
Yet how do you pick the best one for a small business with a limited budget?
Best Procurement Software for Small Businesses
Here are some of the best procurement software options for small businesses:
Precoro
Precoro is a cloud-based solution for procurement process optimization. Automated operations and centralized purchasing processes only. By keeping processes online, updates and changes can be made in real-time to accurately reflect purchases and spending. With Precoro, your business won’t have to go through time-consuming manual procedures which can lead to human errors. An automated system allows you to minimize the chance of duplicate payments common from manual document matching.
Through Precoro, you can approve purchase orders, significantly faster through online communication, including Slack messages and emails. You can also connect Precoro with your ERP suite and other virtual business tools using ready-made integrations for products like NetSuite, QuickBooks, Xero or even a free API. All your purchasing data will be secure with SSO and 2-factor authentication.
Precoro has two pricing plans based on how many users you have. If you are Small (teams of 20 or fewer). The cost is $35 per month per user when billed annually.
SAP Ariba
SAP Ariba Buying and Invoicing is a procure-to-pay software offering ease-of-use to small businesses when it comes to your procurement process. The user-customizable software aims to streamline each phase of your procurement process while letting your business stay flexible when buying goods and services.
Use this software to create a comprehensive process to:
- Select goods and services
- Enforce compliance and order
- Receive and reconcile
- Invoice and pay
SAP Ariba software can be used by small, growing companies up to large enterprises looking to ensure compliance in their buying and invoicing process. The software can interface with all major ERP systems so you can incorporate receipt and reconciliation into your purchasing and payment processing.
Fraxion
Fraxion is trusted worldwide to proactively manage purchasing processes and operational spend. The easy-to-use platform enables you to request, review, and approve spend, on any device, wherever you are. By streamlining the procurement process, you can increase visibility which improves your overall accountability when it’s time to audit the budget.
Software allows you to replace manual and spreadsheet-based processes with automated procurement efficiency which is accessible online. Achieve time and cost savings using the mobile software’s easy-to-use:
- Requisition-to-PO processes
- Expense management
- Approval and AP workflow management
- Reporting and spend analysis
With Fraxion, each purchase and expense request is tracked, approved, policy compliant, and in budget. Automate and simplify how you manage operational spend and say goodbye to unauthorized spending with random suppliers, approval bottlenecks, and time-consuming AP processes.
Coupa
Coupa eProcurement offers two world-class purchasing systems, each simple to use and affordable to buy. The platform allows organizations to automate manual procedures while maintaining an electronic record of all purchases.
The two options are:
- Coupa eProcurement Express, the world’s first freely downloadable purchasing system, provides a cost- and worry-free solution for small organizations looking to replace their paper-based procedures or aging homegrown solutions. This version is quick to implement, making it popular for businesses looking to start their transition to modern procurement methods.
- Coupa eProcurement Enterprise, the premier offering, adds depth by supporting additional purchasing procedures, forms of buying, and dynamic reporting. Encompassing requisitions, approvals, purchasing, requests for quotations (RFQ), receiving, budgeting, and e-invoicing, the Enterprise edition helps small, midsize, and enterprise-level companies control employee spending while streamlining and automating the procure-to-pay business flow.
One of the popular features of the Enterprise edition is the ability to automatically convert one-time requests from employees into a formal Request for Quotation (RFQ). Once created, the document can be directed to suppliers via email or fax to jumpstart the requisitions process. After suppliers then respond with pricing information in a quote, the approved quotation can then become a purchase order.
Kissflow
Kissflow Procurement Cloud is a flexible procure-to-pay software that enables businesses of all sizes to streamline their procurement processes. Its modules include purchase orders, purchase requisition, vendor management, purchase invoicing, analytics, and integrations, all in one unified platform. If you’re transitioning from manual procurement management tools or replacing disparate systems, look no further than Kissflow Procurement Cloud.
Best for companies of 50 to 1000 employees dealing with indirect procurement. Pricing starts at $1,990 per month. This can increase based on selected features, transaction volume, and total number of users.
Oracle NetSuite
Note: This is a full ERP solution, not just a standalone procurement software.
NetSuite offers a broad set of functionality including accounting, inventory control, supply chain and warehouse management, production management, order management, procurement, human capital management, and e-commerce.
Free and Low Cost Procurement Software Options
Without the resources of a global enterprise, many small businesses struggle to afford procurement solutions. Fortunately, there are low cost and even free procurement software products available. These solutions make it possible for businesses of any size to automate their procurement processes.
Generally, the cost of e-procurement software starts between $10 and $20 per month per user. This is for cloud-based solutions with a subscription-based pricing model. The total price will depend on how many users need access and what level of access they need.
It’s important to note there are many free trials available, though these may only last anywhere from a week to a month. If you want a permanent procurement solution for your business, you’ll have to consider your budgetary limitations.
Here are some of the best free and low cost procurement solutions for small businesses:
Spendwise
Spendwise is an easy-to-use business spend management software which helps optimize the procurement process. Thousands of businesses and other organizations of all sectors and sizes use Spendwise to track, control and analyze their spending. This low cost software automates and streamlines your purchasing processes, saving you more time and money.
One way to save money is to set approval limits and workflows. This can control spending by limiting who can spend against the budget. In turn, automated spend tracking shows how much is being spent by each department or project. PDF and Excel reports can detail all your company’s procurement-related spending.
The cost of Spendwise subscription as a service starts at $9 per month per user. The pricing model is priced per user, so the smaller your company the more affordable the software is. There is both a free trial and version available. Other than free options, Spendwise is the lowest monthly SaaS on this list.
Bellwether
Bellwether Purchasing and Inventory Software is a complete end-to-end procurement system that operates in a purely paperless mode, a major shift from traditionally paper-bound procurement methods. An automated three-way match ensures each invoice matches the correct PO and receipt.
There are two versions available to best suit your needs: the Express Version and the SQL Version. The PMX’s SQL version requires Microsoft SQL Server 7.0 or higher to be installed on your file server. PMX’s Express version uses File/Server technology and does not require additional database software.
Bellwether is available starting at $11 per month per user, making it one of the more affordable options on this list while still offering a wide variety of intuitive features suitable for small business procurement practices.
Tradogram
Tradogram is a business spend management solution used to help companies streamline their purchasing process. This cloud-hosted solution allows managers to comfortably control company expenses with 100% visibility into spending habits. The multi-level management software is built to automate purchasing workflows to enhance inter-department collaboration and transparency throughout the procurement process. From submitting requisitions for approval to reconciling receipts and invoices, Tradogram unifies all activities related to purchasing on one easy-to-use cloud-based solution.
The monthly plan starts at $15 per month per user though the annual plan is discounted at $10 per month per user, making it a highly affordable procurement platform for small businesses.
PLANERGY
Streamline your procure-to-pay process with PLANERGY. Formerly known as PurchaseControl, this procurement management system will help you create POs, manage approvals, and understand spending. Included features allow you to monitor all goods received from purchase orders and perform matching to create a full audit trail.
The SaaS-based spend management tool has been designed to help all businesses get a better grasp on their financial operations. PLANERGY provides integrations with a number of leading accounting software products to ensure your purchase management process is as efficient as possible. Real-time budgeting tools allow you to monitor your bottom line for greater visibility when you need it most.
PLANERGY costs $15 per month per user, which includes free enterprise level support and onboarding services. A free trial is available to see if PLANERGY is right for your small business.
Procurify
Procurify is the go-to spend management solution for small to midsize companies all across the world. Hundreds of companies use Procurify software to track, control and analyze their spending habits, from one-time purchases to recurring orders. With its comprehensive workflow and user-friendly interface, your purchasing or finance departments can implement Procurify across all your business teams to create a better Spend Culture. Get set up in as little as two weeks to fully transform your procurement process.
A free version is available, though pricing is based on transaction volume and feature set. As such, this solution can be incredibly expensive once various modules are added. Procurify aims to serve fast-growing yet small organizations with anywhere from 20 to 500 employees.
Other Purchasing Software to Consider
Another option is procure-to-pay or P2P software, which links your purchasing department to your accounts payable department to streamline your supply chain management practices company-wide and provide a greater understanding of your financial status.
Finally, purchase order software can streamline the creation of POs without the added extras offered by procurement solutions. This can be a more affordable option for new startups and small businesses with limited budgets to manage requisitions.
