Adopting new software is a big decision for companies of all sizes. Not only will you have to transition your existing processes, you'll have to train your team and onboard them.
However, the right software can be a game changer — especially for procurement, expense, and accounts payable processes. But how do you go about choosing the best tool for your company? We’ve compiled a list of tips on how to make that decision.
Procurement software, also known as procure-to-pay (P2P) software, unifies your processes from requisition to payment. In other words, your requests, approvals, purchase orders, invoices, and expenses are all visible and managed in one central place.
Deployment options for procurement software have evolved significantly, offering faster time-to-value than ever before. Cloud-based deployments, in particular, expedite implementation by eliminating the need for extensive infrastructure setup and maintenance. This allows companies to quickly onboard and start utilizing the software, achieving efficiency and realizing benefits sooner.
The three key benefits of a procurement software solution include automation, accuracy, and analytics.
Automation in procurement streamlines workflows, reduces manual errors, enhances compliance, provides real-time data insights, and accelerates approval processes, ultimately leading to significant time savings while improving overall efficiency. In fact, Fraxion customers see an 80% increase in time savings as manual data entry, repetitive manual tasks, and duplicate entries across spreadsheets and systems are replaced by automated workflows.
Procurement software improves accuracy by automating and standardizing purchasing processes, reducing the likelihood of human error. It centralizes data, ensuring that all stakeholders have access to consistent, up-to-date information. Features like automated approvals, real-time tracking, and automated compliance checks further enhance accuracy by ensuring that all transactions adhere to organizational policies. Through automation and the use of artificial intelligence (AI), a procurement software tool significantly improves accuracy. As an example, Fraxion’s procurement software features AI-powered AP automation with a 99% accuracy rate. This functionality greatly reduces the risk of errors, exceptions, duplicate invoices, and the need for costly corrections and reconciliations.
At its core, procurement software is developed to help companies understand how they spend money, and manage the processes associated with it. With a procurement software tool, you’ll get complete spend visibility, analytics, and reporting capabilities. Empowering you to identify trends, opportunities to save, and make informed, precise decisions. Additionally, you can curtail unnecessary and unauthorized spend. A software tool can provide proactive internal controls that drive spend control, policy compliance, and operational cost savings.
Not every procurement software tool will meet your company's unique needs. To evaluate your options, start by defining your particular business requirements. Here are some areas to consider:
Analyzing software features is a balancing act. Too many features can overwhelm your team. You can also pay more for functionality you don’t need. Too few features in procurement software can lead to gaps that necessitate additional systems, creating a fragmented and complex environment. A holistic approach ensures all necessary functionalities are integrated, providing a centralized platform for managing processes and costs. That’s why it’s best to think about what your needs are in advance, and source software accordingly. Need a place to start? Here are some of the features that Fraxion offers.
Another way to filter software features is by company size. A small business likely won’t need all the tools that an enterprise company would use. Fraxion, for example, is engineered for mid-size companies, which can give you the best of both worlds. You can learn more by booking a call with us directly.
In addition to functionality, ease of use and mobility are equally important. By giving your team access on any device, from any location, and an intuitive app or platform to complete day-to-day tasks with ease, you can fast track adoption, the key to success for any software investment, and a healthy ROI.
Be sure to look for innovation-forward software vendors, solutions will be cloud-based, powered by AI, machine learning and emerging technologies, and have a modern and intuitive interface. These technologies are transforming traditional practices, enhancing efficiency, accuracy, and improving planning and decision-making processes. Vendors committed to ongoing innovation and updates keep their software current and effective, offering continuous improvements, scalability, security, and new features that keep companies competitive in their procurement strategies.
One of the best ways to understand software and its benefits is by seeing what other users say about it. Third-party review sites such as Capterra, Software Advice, and GetApp can provide independent reviews of various software platforms and customer satisfaction ratings. They also provide comparisons between software solutions.
Additionally, most software websites will have case studies or industry pages where they highlight how companies in those sectors use their tools to solve industry-specific challenges.
Take a look at the software provider’s blog, media, or news section to find out more about their innovation and software updates. A commitment to ongoing innovation and regular updates keeps the software current and effective.
No matter what platform you choose, it’s inevitable that at some point you will require support. That’s why it’s so important to find software that’s easy to use and onboard and provides helpful and timely support. Review customer satisfaction ratings for support, take a look at FAQs to see if the software vendor provides email and telephonic support, access to a knowledge base with tips, video tutorials, or a live chat function.
Software doesn’t live in isolation. You’ll want your platform to integrate with the tools that you use every day. Look for software with API availability: Robust APIs enable integration with third-party applications and future-proof the software. Most software websites will have an integrations page that lists the tools they connect with. This can include ERPs and accounting systems, messaging apps such as Microsoft Teams, and vendor catalogs like Amazon Business, for example, via PunchOut or PunchIn.
Choose software providers that prioritize security by undergoing regular third-party penetration tests and obtaining security certifications. These tests help identify and address vulnerabilities, ensuring the protection of data. Partnering with companies that adhere to stringent security protocols not only safeguards against cyber threats but also enhances compliance with data protection regulations. Software vendors should be willing to provide security information, on request during your review process.
Opting for vendors offering flexible payment options, such as monthly payments, ensures financial manageability while considering the total cost of ownership. Understanding the ROI potential, including cost savings, process improvement, and efficiency gains, alongside scalability options, ensures that the software adapts as your company’s needs evolve, maximizing long-term benefits and operational effectiveness.
Purchasing a procurement tool is a big step but choosing the right software can drive efficiencies and cost reductions that will boost your bottom line. We’re here to make it easier. Book a call with Fraxion today, we’d like to understand your business requirements, and if we’re a good fit, tailor a demo to your needs.
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