7 Steps to choosing the right procurement software solution in 2025

Manual purchasing processes weigh heavily on procurement and finance teams. Paper forms, email chains, and scattered files slow everything down and leave spend visibility lacking. It’s no surprise that nearly 90% of employees feel encumbered by repetitive and tedious tasks that modern procurement software solutions can easily alleviate.

But with dozens of vendors promising similar results, how do you decide which solution is right for your organization? These seven steps can help procurement managers and finance leaders evaluate options with confidence and secure buy-in from stakeholders.

1. Conduct a needs analysis and uncover what's broken in your procurement process
2. Choose the right deployment model and set clear goals
3. Look for procurement software solutions with expertise in your industry
4. Review customer feedback and learn from real experiences
5. Build a business case that speaks decision-makers' language
6. Put vendors to the test and request software demos
7. Make your choice and select the solution that fits today and scales tomorrow

1. Conduct a needs analysis and uncover what's broken in your procurement process

Start by documenting what isn’t working today. 

Are purchase requests delayed because they’re routed through email? Do budget owners lack real-time visibility? Are staff making off-policy purchases? Write down the specific pain points, then distinguish “must-haves” from “nice-to-haves.”

Most procurement software solutions may appear to offer all the answers. Still, once deployed, they could mask critical issues that may be embedded deep in the business. It's essential to understand which systems and processes can be improved by software and which ones demand changes to the broader policies, people, and procedures that are in place.

Compile in a list:

• Current challenges
• Existing weaknesses
• What is currently working
• Your goals for improvement

Consider the categories of operational spend your company incurs. 

For example, if it’s travel, ensure that all scenarios, challenges, and examples of any policy breaches or overspend have been documented. Sourcing a solution that enables travel requests and pre-approval of spend will be a prerequisite.

2. Choose the right deployment model and set clear goals

Next, decide how the software will be deployed. Cloud-based systems are usually easier to manage and scale, while on-premise deployments may suit organizations with strict internal IT policies. Your choice depends on infrastructure, resources, and budget.

Beyond deployment, outline your goals. Do you need stronger policy enforcement? Better vendor catalog control? Mobile approvals for a distributed workforce? Knowing your objectives will guide the entire selection process.

Tip: Involve IT early if you’re considering on-premise, and finance leaders if integration with ERP systems is a top priority.

3. Look for procurement software solutions with expertise in your industry

It's wise to search for software providers with extensive experience in your industry.

Here are some examples of industry-specific needs:

• Property management companies often require spend, purchase order, and budget control across multiple buildings, projects, and legal entities.
• Non-profits need transparent and auditable cost allocations against grants, funds, or donors.
• Biotechnology companies choose to empower lab managers to purchase from major medical vendor catalogs, with sound project approvals and policy controls.

If a solution provider has a proven track record within a particular industry, it’s an indicator that the system successfully solves challenges experienced by that sector.

4. Review customer feedback and learn from real experiences

Don’t rely solely on vendor marketing. You need to see what verified end users are saying about their experience with the product. Reputable software marketplaces and review platforms will highlight solutions by category, with company information, feature lists, pricing information, and, most importantly, validated customer reviews.

You can learn a lot from the following independent peer-to-peer software review sites, some of which gain millions of visits from professionals seeking unbiased information:

• Capterra
• GetApp
• Software Advice
• G2
• Software Connect
• FeaturedCustomers
• Crozdesk

A helpful feature to look out for is the overall score on Capterra, for example, which aggregates the rating from 1-5 points on crucial software touchpoints like the ease of use, customer service, software features, and value for money.

Tip: Filter reviews by company size and industry. Feedback from peers in similar organizations will be the most relevant.

5. Build a business case that speaks decision-makers' language

Procurement touches nearly every department, so buy-in is essential. A business case should show how the software will reduce costs, improve compliance, and create efficiencies across the organization. Translate benefits into measurable outcomes, like fewer hours spent on invoice processing or reduced overspend on unapproved purchases.

Tip: Tailor the message for each stakeholder group. Executives care about cost savings and compliance, while end-users will want simple, intuitive workflows. For justifications to include when building your business case for procurement software, explore our guide to building a business case for procurement software.

6. Put vendors to the test and request software demos

Software demos are your chance to see how the product performs in practice. Don’t just sit back—provide vendors with real scenarios from your business so they can demonstrate how their system handles them.

Tip: Prepare a short list of test cases, such as creating a purchase request, routing it for approval, and reconciling it against a budget. This will reveal how well the system fits your needs.

7. Make your choice and select the solution that fits today and scales tomorrow

By this point, you should have a clear understanding of which solution meets your requirements and offers the best long-term fit. Choose the vendor that balances cost, functionality, and scalability while aligning with your business goals.

Why Fraxion stands out as the best procurement software solution in 2025

Fraxion is trusted by mid-sized organizations worldwide because it brings procurement and AP automation together in one solution. From AI-powered data capture to policy-driven approvals and ERP integrations, Fraxion gives procurement managers and finance leaders real-time visibility and control over spend. Features like mobile approvals and Microsoft Teams integration make adoption simple for staff, ensuring that policies are followed without slowing anyone down.

If you're ready to see Fraxion in action, sign up for a custom demo. We'd love to understand your requirements and show you why our procurement software solution is top-rated by users.

FAQ: Choosing the Best Procurement Software Solutions

1. How do I know if my company is ready for procurement software?

If you’re still relying on spreadsheets, paper forms, or email approvals, you’re already facing inefficiencies. Missed approvals, overspending, and poor visibility are clear signs it’s time to invest.

2. What if our budget is limited?

Procurement software is often available as a subscription, making it more affordable than large upfront investments. Many companies start small with request and approval workflows, then add modules as needs grow. This phased approach spreads out costs and delivers early value.

3. Will the software work with our existing systems?

Most of the best procurement software solutions integrate with popular ERPs and accounting tools. Fraxion, for example, connects with systems like Microsoft Dynamics, Sage, QuickBooks, and Acumatica. This means you don’t need to replace your financial system to gain efficiency.

4. How does procurement software help with compliance and audits?

Every purchase request, approval, and budget check is recorded in the system. This creates a complete audit trail, reduces the risk of policy breaches, and makes audits faster and less disruptive.

5. What makes Fraxion different from other providers?

Fraxion offers more than basic requisition tools. It combines procurement and AP automation in one solution, with AI-driven data capture, real-time budget visibility, Microsoft Teams integration, and mobile approvals. This makes it easy for staff to adopt while giving finance leaders the control and insights they need.