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. There are literally thousands of e-Procurement software providers[1]. Procurement software comes in industry specific forms, such as Translizer[2] for translation industry and Adaco[3] for hospitality industry or generically for all types of spend from software vendors like Ariba, SAP, Automation Centre[4], or Oracle. 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 organisation will use a shared procurement system to take advantage of economies of scale to drive down the cost of purchases. 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.
The key benefit for organisations using procurement software include ease of administration and potential long-term cost savings. Having a single interface for procurement related management information cuts down the time and effort required to monitor organisational spending. The use of such software also allows procurement managers to control the vendors used by the wider organisation so all employees take advantage of negotiated rates and other terms of service.