What is procurement software?
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Procurement software is a sophisticated automation solution that digitalizes the procurement process and brings it to one platform. It allows organizations to compare products and prices in real-time and gives them insight into vendor data like past performances, financial health, ratings, etc. Then it enables supplier consolidation and enforces it by only letting POs be routed to those suppliers. Such software digitalizes the procure-to-pay cycle by letting employees raise PRs, routing them for approval, turning them into POs, and forwarding them to the approved suppliers.
By integrating this with the accounting software, both the accounting and procurement departments are enabled to make informed decisions and manage the spend against budget. As the suppliers send the order and GRN is made, the software proceeds to automatically match PO, GRN, and the vendor’s Invoice to ensure no discrepancy exists.
Procurement software also has Vendor Portals that make vendor communication more effective and let them see the status of payments. In essence, these central platforms make internal and external interactions better, eliminate redundant and time-consuming processes, and allow teams to derive better insights into the organization’s processes.
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