Alexis Kestler
Finding the right procurement software can be a game-changer for SMBs looking to streamline purchasing workflows and gain data-driven insights. As a fellow tech geek, I’m excited to dive into the top procurement tools that can level up your supply management.
Let’s first quickly run through what procurement entails and the key benefits automation provides. Then I’ll share my analysis of the leading solutions available right now for SMBs like you. I don’t want this guide to be just another boring software list—my goal is to give you the information you really need to make the best choice for your unique business needs. Sound good? Let‘s dive in!
What Does Procurement Software Do?
Procurement refers to the process of purchasing the goods/services your business needs—anything from raw materials to office equipment. It involves raising purchase requisitions, obtaining price quotes, negotiating with vendors, issuing purchase orders (POs), receiving shipments, processing invoices, and more.
As you can imagine, things can get disorganized and inefficient without a centralized automated system. Procurement software eliminates those manual paper trails and spreadsheets by providing an end-to-end platform to execute and manage the entire procurement cycle.
Here are some of the most important tasks procurement software can handle for you:
- Automate generation/sending of POs
- Track status of POs in real-time
- Manage vendor onboarding and contracts
- Streamline invoice processing
- Enforce approvals by amount/role
- Maintain inventory across locations
- Analyze spending by vendor/category/product
- Create custom workflows to match your process
- Integrate with accounting software
According to research by Precoro, procurement automation helps cut operational costs by 20-30% on average. And a staggering 75% of businesses report that switching to e-procurement improves compliance and transparency.
So in a nutshell, these tools save you time, overhead costs, and headaches! Now let’s look at the leading solutions on the market that can deliver those key benefits.
Top 9 Procurement Software for SMBs
1. Precoro – Best For Simplicity
I recommend Precoro as the best option if you want something designed intentionally for SMBs. The interface is refreshingly simple and intuitive while still providing robust functionality under the hood.
Precoro shines when it comes to automation and ease of use. It minimizes the need for manual data entry at every stage, from purchase requisitions to approvals to invoicing. You can also access the platform from anywhere using their mobile app.
In terms of analytics, Precoro gives you insightful reports on spend by time period, vendor, product category, and more. I especially like their user-friendly dashboard showing important metrics and trends at a glance.
They also offer out-of-the-box integrations with top accounting platforms like QuickBooks and Xero for smoother financial management. Overall, Precoro hits the sweet spot between simplicity and depth of capabilities.
2. Procurify – Best For Growing eCommerce Brands
While Precoro aims at simplicity, Procurify offers more advanced capabilities tailored to the needs of product brands managing scaling procurement operations.
Procurify is especially great for eCommerce companies that work with a lot of vendors and SKUs. It makes it effortless to track inventory balances and reorder stock levels based on lead times and sales velocity data.
A standout feature is Procurify‘s purchasing cards that let you make business purchases as you would personally. This simplifies procurement for remote employees or reps buying supplies on-the-go.
When it comes to reporting, Procurify not only tracks spending but ties it back to profits. For example, their margin analysis shows your revenue minus product + shipping costs per SKU. This helps you make smart sourcing decisions.
Procurify also plays well with sales channels like Amazon and Shopify. You can integrate your product catalog to sync items, inventory, and orders across systems.
3. Kissflow – Best For Custom Workflows
Kissflow is the tool to pick if your procurement process has unique needs not easily handled by out-of-the-box solutions.
It enables creating flexible workflows aligned with your purchasing policies and accounting rules. Kissflow also makes it simple to add custom approval steps, field validations, notifications, and more.
For instance, you can configure different sequences based on request types or dollar amounts. Approvers can be dynamically assigned using rules based on department, location, or role.
Kissflow also offers one of the most well-designed vendor portals for onboarding new suppliers, managing documents, and engaging vendor teams.
Downstream, Kissflow shines at handling invoices and payments. You can define match rules to verify invoice line items against POs, goods receipts, and contracts. This prevents erroneous or fraudulent payments.
4. Tradogram – Best Free Option
If budget is a concern, Tradogram has you covered with a free forever plan offering generous limits. For context, most vendors charge hefty annual subscriptions even for basic capabilities.
Some key functionalities available in their free version include unlimited purchase requests, 2 active vendors, 2 users, 50 purchase orders per month, and standard support.
Of course, the paid plans unlock additional capability based on your procurement volume and team size. But the free tier still enables small teams and early-stage SMBs to eliminate manual hassles.
Tradogram also has a simple and clean interface that‘s easy to use for non-techy employees in your company. Training new hires on procurement processes is quick and painless.
5. Oracle NetSuite – Best For Deep ERP Integration
For SMBs already using NetSuite ERP, going with Oracle NetSuite‘s procurement solution allows deep out-of-the-box integration that would be tricky to achieve otherwise.
It natively syncs with other NetSuite modules like inventory management, accounting, HR, planning, and more. You don‘t have to worry about complex API integrations and inconsistent data across systems.
This streamlined data sharing enables advanced capabilities. For example, NetSuite automates backorders based on inventory levels. You can also configure end-to-end workflows spanning procurement requests to fulfillment/shipping to invoicing.
I‘d only recommend NetSuite Procurement to SMBs fully committed to NetSuite‘s business management suite. The high costs and complexity would be overkill otherwise.
6. SAP Ariba – Best For Large Growth Potential
SAP Ariba is the premium procurement platform used by large enterprises like London Heathrow Airport, Rakuten, and Scheider Electric. But their Starter Pack plan does work for SMBs looking for enterprise-grade capabilities on a budget.
While more expensive than other solutions, SAP Ariba offers unmatched depth and breadth of functionalities that scale well with your company‘s growth.
It provides a full sourcing suite allowing RFQs, reverse auctions, and contract management with suppliers. Their spot buy marketplace gives access to ~4M catalog items from major brands.
Downstream procurement processes are robust as well. SAP Ariba offers invoice automation, payment processing, supply chain financing, and global tax compliance.
While the starter pack has some limits, growing companies can unlock more capabilities and scale massive transaction volumes while sticking with the same platform.
7. Bellwether – Best For Small Service Businesses
Unlike other options optimizing complex product procurement, Bellwether streamlines services procurement for SMBs utilizing external contractors, agencies, and consultancies.
Bellwether makes it easy to track SOWs, milestones, hourly billings, retainers, and service contracts across multiple client projects.
The ability to allocate contractor invoices to specific clients or projects based on work logs is useful for agencies. This transparency and organization around service spend helps spot problem contracts draining profits.
I especially like Bellwether‘s flexible approval workflows and spending limits that trigger notifications based on ranges or thresholds you configure.
While Bellwether won‘t compete on manufacturing/inventory capabilities, it‘s a cost-effective solution for professional services, IT consulting, marketing agencies, and similar SMBs.
8. Unleashed – Best For Manufacturers
In contrast, Unleashed Software specializes in manufacturing-focused procurement unlike any solution above. From raw material to finished goods, it gives deep visibility and control across your production environment.
Unleashed lets you easily track inventory, WIP, orders, and shipments to optimize production schedules and purchasing. Granular tracking ensures you have materials on-hand right before they’re needed for a job.
Barcode scanning capability minimizes errors when receiving inventory or moving WIP between production stages. Bill of Materials management is also unmatched, giving teams insight into every component that goes into finished products.
If you‘re an SMB manufacturer with complex production workflows, Unleashed will save you headaches without breaking the bank.
9. BambooHR – Best For Internal Procurement
Finally, BambooHR may seem like an odd choice given their HR focus. However, their intuitive software actually works well for managing internal procurement processes.
For example, employees can submit requests for office equipment, software, business travel, and expenses. BambooHR allows you to define workflows so the right managers vet each request type.
Approved orders can automatically generate POs just like with other vendors. Fulfillment requests are routed to the correct team like IT or facilities.
There‘s even tracking so employees can check status on their orders and reimbursement submissions. And managers gain visibility and policy control over internal spending.
For SMBs that want simple procurement without supplier management, BambooHR does the job on top of its core HR capabilities.
Key Considerations For Picking The Right Software
With so many options to choose from, how do you select the best procurement solution for your SMB? Here are some important criteria to help narrow your search:
#1 Fit With Your Current Systems
If part of a larger technology stack, make sure the procurement app integrates well to avoid data silos. For example, check whether it syncs key objects like suppliers, POs, and invoices with your accounting platform. APIs should also be available to connect with other tools like CRM, inventory, etc.
#2 Procurement Volume And Throughput
Consider your current and projected procurement velocity across number of POs, vendors, SKUs, etc. Some solutions scale better for high throughput global procurement at enterprise scale. While others are designed intentionally for lean ecommerce or SaaS SMBs.
#3 Business Type And Use Cases
Assess whether the tool handles your business-specific needs – for example, complex manufacturing vs. online retail vs. IT consulting. Verify it provides necessary procurement use cases like sourcing, contracting, inventory/WIP tracking, services spend allocation, etc.
#4 Ease Of Use And Training
The solution should be intuitive with little required training. If enterprise-grade but complex, ensure you have the change management bandwidth required. Also check for self-service tooltips, videos, and support articles that enable user adoption.
#5 Budget And Pricing Model
Keep total cost of ownership in mind, including any annual contracts, fees per transaction/user, add-on charges, etc. Identify must-have capabilities vs. nice-to-haves. Startups should look for free tiers, while mature businesses may desire deeper functionality.
Take Your Procurement To The Next Level
The bottom line is that smart procurement software pays dividends for SMBs by driving efficiency, visibility, and cost savings. It lays the data foundation for strategic sourcing, supplier management, and data-driven operations.
Hopefully this guide provided some helpful insights as you search for the right solution tailored to your management style, business needs, and budget. Please don‘t hesitate to reach out if any other questions come up during your software selection journey – I‘m always happy to help a fellow geek out!
