The Best Procurement Software for Small Businesses
We’ve evaluated the top procurement software for small businesses, focusing on features like affordability, requisition automation, and multi-level approval workflows.
- Simple and straightforward pricing
- Both punchout and Punch-In catalogs
- Integrations for the top accounting systems e.g. QuickBooks Online, NetSuite, Xero
- Streamlines invoice tracking
- Provides a paperless process
- Offers mobile capabilities
- Seamless integrations with QuickBooks and Sage Intacct, plus APIs for other ERP systems
- Unlimited Purchase Orders
- Inventory management features, including status inquiries based on item codes
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.
- Precoro: Best Overall
- Spendwise: Best for Spend Tracking
- Bellwether: Best Requisition Tools
- Tradogram: Best Approval Workflows
Precoro - Best Overall
Precoro is a cloud-based solution for procurement process optimization. Automated operations and centralized purchasing processes only. Updates and changes can be made in real time by keeping processes online 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 that are 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.
Spendwise - Best for Spend Tracking
Spendwise is an easy-to-use business spend management software that 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 a free version available. Other than free options, Spendwise is the lowest monthly SaaS on this list.
Bellwether - Best Requisition Tools
Bellwether offers a streamlined requisitions module that is easy to use for small businesses. All orders are available in one central location, organized by status: open, rejected, or canceled. It also has a search bar where you can look up requisitions by order number or vendor, helping you quickly reference the amount or its approval status. This helps you stay organized and maintain an accurate record.
From here, you can efficiently create a new requisition order. You can choose items directly from your catalog, and it auto-populates its vendor, G/L account, and rate. This saves time by eliminating manual entry and ensures all information is correct. For items that aren’t in your catalog, you can include one-time items or even add them to the catalog without leaving the screen.
However, one downside to Bellwether is its prices are not publicly available. Its Starter pack includes all core procurement modules, including requisitions, purchase orders, and approval workflows. That said, its simple interface and automation tools make it a solid option for smaller companies.
Tradogram - Best Approval Workflows
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 $$198/month for up to 9 users. While more expensive for single users, adding nine makes it an affordable $22/user/month.
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, items or services purchased, delivery schedules, payment terms, and overall costs. You can also manage your new and existing supplier and vendor relationships to get better deals on goods over time.
Sometimes referred to as eProcurement, 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 within the budget.
Key Features
- Purchase order creation: Efficiently create purchase orders for internal tracking and to send to suppliers.
- Vendor management: Track supplier performance and communication.
- Multi-level approvals: Ensure purchases are accurate with an automated approval workflow.
- Spend management: Set and monitor procurement budgets and analyze total spending to identify cost-saving opportunities.
- Integrations: Integrate with accounting, inventory, and even ERP systems.
- Affordability: Budget-friendly pricing models for small businesses.
- Ease of use: Allow new users to get up to speed with an easy-to-navigate interface.
Other Purchasing Software
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.
Pricing Guide
Generally, the cost of 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.
