Purchasing software, also referred to as procurement software or e-procurement software, is used by companies to manage the purchasing stage within the supply chain process. These business apps help to automate the process of acquiring merchandise or services by analyzing spending budgets, finding suppliers, comparing products and determining potential vendor performance. They help to produce positive asset management, maximize profit on each purchase order, improve invoice processing and payment, ensure contract compliance, manage assets and inventory, and reduce purchasing cycle times.
Procurement management software allows you to raise and approve purchase orders. You can choose your desired product or service based on vendor bids collected through the e-procurement system. You can upload and auto-archive procurement related documents including requests, purchase orders, invoices and receipts.
By using procurement software you can ensure that no purchase order is made without the correct approval. You can also avoid creating duplicate purchase orders. Several orders for the same product can be combined in a way that determines the best value. The procurement department can better monitor organizational spending and cut costs by allowing universal company access to special vendor agreements such as negotiated rates.
Purchasing software can be used to manage reverse auctions, either through public bids or multi-round private offers. These tools help make intelligent decisions by organizing and comparing product information. This is particularly useful in comparing commodities which lack obvious variation in features or quality.
Once a product or service is chosen, information can be gathered and submitted to all parties for approval. Once approval is received, the requisitioning phase can begin using the electronic purchasing capabilities of these apps. These tools will enable electronic bill paying, along with invoice and order matching. Automated reminders can be set to follow up with vendors on confirmation of purchase orders and delivery. Delivery can be tracked and you can be automatically alerted when orders come in.
Procurement software also helps to organize and archive the vast amount of data accumulated when making important purchases. A physical inventory of goods can be maintained and all vendor details, interactions and transaction can be stored safely.
Another key component that the majority of e-procurement applications offer are reporting and analysis. These features offer insights into spending and purchasing trends, helping to monitor goals and measure the performance of departments. They help to flag up areas for cost reduction and areas for improvement in business processes.