8 Advantages of Using Procurement Software for SMBs

Procurement software benefits small businesses with cost savings, improved supplier performance, increased efficiency, better data management, compliance, collaboration, improved supplier management and better decision-making. Automate and streamline procurement processes with procurement software for improved results and a competitive edge

Procurement software is a digital tool that can help small businesses streamline and automate their procurement processes, such as sourcing, purchase orders, invoicing, and payments. There are a wide range of benefits that small businesses can achieve by using procurement software, including cost savings, improved supplier performance, and increased efficiency.

Cost savings: According to a study by the Aberdeen Group, companies that use e-procurement achieve, on average, 12% lower costs than those that do not. Procurement software can help small businesses achieve cost savings by automating and streamlining procurement processes, such as sourcing, purchase orders, invoicing, and payments. This can help small businesses save time and reduce errors, which can lead to cost savings.
Improved supplier performance: Procurement software can help small businesses improve supplier performance by providing real-time visibility into supplier performance, such as on-time delivery and quality. This can help small businesses make better decisions about which suppliers to continue doing business with.
Increased efficiency: Procurement software can help small businesses increase efficiency by automating and streamlining procurement processes, such as sourcing, purchase orders, invoicing, and payments. This can help small businesses save time and reduce errors, which can lead to increased efficiency.
Better data management: Procurement software can help small businesses manage data more effectively by providing real-time visibility into procurement processes and performance. This includes data visualization tools to identify patterns and trends, and data analysis to make more informed decisions.
Compliance: Procurement software can help small businesses comply with laws and regulations related to procurement, such as the Federal Acquisition Regulation (FAR) and the Small Business Administration (SBA) rules.
Collaboration: Procurement software can help small businesses collaborate more effectively with suppliers, vendors and internal stakeholders. This includes using e-sourcing and e-procurement platforms to manage suppliers, and using digital collaboration tools to work with internal stakeholders.
Improved supplier management: Procurement software can help small businesses identify and select the best suppliers, negotiate contracts and monitor supplier performance.
Better decision-making: Procurement software can provide real-time visibility into procurement processes and performance, which can help small businesses make better decisions.

In summary, procurement software is a digital tool that can help small businesses streamline and automate their procurement processes, such as sourcing, purchase orders, invoicing, and payments. The benefits of using procurement software for small businesses include cost savings, improved supplier performance, increased efficiency, better data management, compliance, collaboration, improved supplier management and better decision-making.

FactWise is an e-Procurement solution that transforms the end-to-end source-to-pay journey for product manufacturing companies globally. The comprehensive platform is focused on enabling cost reduction via holistic supplier analytics and data integration, improving efficiency via automation, and improving supplier relations via supplier management and supplier diversity.

Stawan is the founder and CEO of FactWise. Before founding FactWise, Stawan was the NA TMT-Procurement Leader at McKinsey. Passionate about procurement, Stawan has 15 years’ experience in enabling clients of all sizes to achieve business impact via procurement.