Purchasing Software

Guide to Purchasing Software

Best solutions, from purchase orders to spend management systems
By Daniel Kehrer

	Purchasing Software Basics The true power of purchasing software emerges when it is integrated with your finance and accounting procedures. Save money with a web-based purchasing software system. Not all purchasing software solutions are created equal, so do your research before making a selection.

If your business still creates piles of purchasing paperwork and has buying bottlenecks, purchasing software offers quick salvation. As a business grows, the purchasing process gets more complex. Seeking quotes, tracking purchase orders, approving invoices, issuing payments and the need to control 'maverick spenders' all make the procurement process harder to manage. It's easy for a business to leak cash by overspending, buying haphazardly or losing track of what's happening on the 'spend' side.

That's when purchasing software and a variety of other purchasing or 'spend management' solutions can help save the day. Some of your key options include:

     1) Basic purchase order software that can keep track of your spending and procurement.
     2) Full-featured purchasing software suites that automate and streamline all stages of the process, from initial requests for quotations (RFQs) to final approval of the invoice.
     3) Web-based purchasing management solutions that let you management the procurement process online without having to install software at your location.
     4) Turnkey 'spend management' solutions -- designed mostly for larger companies -- that take a highly-detailed and hands-on approach to controlling every detail of your business spending, from RFQs and requisitions to receiving and invoice approval.

Action Steps

The best contacts and resources to help you get it done

Automate your requisition-to-reconciliation process Purchasing software is an essential tool for today's business and can integrate easily with existing financial systems.

I recommend:  Look for easy-to-use purchasing software that's a good fit with your size company. Most complete purchasing management solutions are geared to mid-size and large companies, although some modular systems can be a goot fit with smaller, growing businesses. Firms such as Cougar Mountain, Aestiva, Palmas Development and Coda offer a range of purchasing software solutions. The Palmas Purchasing plus+ system, for example, includes various modules for automating purchasing, payables and material management.

Pack a web-based purchasing software punch Fully web-based systems offer the convenience and cost-savings of online software.

I recommend:  Verian Technologies, for example, offers a 100% web-based solution called Purchase Manager as the core of a purchasing and invoice automation solution. Verian's Purchase-to-Pay suite called ProcureIT includes components for invoice management, e-procurement, expense reimbursement and asset management.

Power up purchasing with enterprise solutions Streamline your procurement and payables processes with high-end solutions.

I recommend:  PurchasingNet is a top provider of eProcurement and ePayables solutions for a wide range of industries and has won awards from Supply & Demand Chain Executive magazine. eProcurement handles requisitions, approvals, purchasing, receiving, inventory control, catalog management and eSourcing. ePayables includes invoice processing, early payment discount management, eStatements and more. Complete 'spend management' solutions from Ariba employ a full ansenal of financial weaponry, including software, sewrvices and consulting expertise for enterprise level companies. Ariba does this exclusively, with operations in 21 countries and 700 spend management experts on staff.

Boost your purchasing management expertise Membership in a professional organization dedicated to the purchasing profession can improve your skills and save your business money.

I recommend:  The American Purchasing Society is a professional association of buyers and purchasing managers. Membership benefits include publications, seminars, training and more. Check out the group's member survey of the best suppliers for business. There's also a helpful Purchasing Glossary at the website.