Spend Management Blog | Fraxion

How to fix a broken procurement process: 5 key strategies

Written by Fraxion | Jul 9, 2025 9:48:17 AM

When your procurement process breaks down, it doesn't always look like a severe issue. More often the signs are not immediately obvious: delayed approvals, budget surprises, inconsistent vendor pricing, and overwhelmed accounts payable (AP) clerks. Mid-sized businesses, especially those growing quickly or operating across multiple locations, are the most at risk. You're past the point where manual processes can keep up, but not quite at enterprise scale with a full-time procurement department.

If you’ve ever said, “We didn’t realize we were over budget until it was too late,” or “Why are we buying from five different vendors for the same item?” It might be time to step back and rethink your process.

Let’s break down how teams in mid-sized companies can spot the issues, fix what's not working, and rebuild procurement workflows that actually support growth.

1. Get clarity on what’s broken

Start by mapping out what your procurement lifecycle looks like today. Are requests logged? How are they approved? When does finance find out about purchases?

You’d be surprised how often the answer is “It depends.”

If your process changes based on who’s asking or where they’re located, that’s a red flag. When teams rely on email, spreadsheets, and hallway conversations to make purchases, gaps form quickly. Purchases slip through the cracks, duplicate orders happen, and no one is accountable.

To help identify this problem, walk through a recent purchase and trace every step. If you can’t document it clearly, neither can your team. That means compliance and cost control are at risk.

2. Align procurement with real budgets

Budgets shouldn't live in a silo. They should be visible, usable, and connected to purchasing in real time.

Too many mid-sized businesses track budgets in a spreadsheet while purchase approvals happen elsewhere. You approve a purchase only to realize later that the department had already exceeded its budget weeks ago. 

Instead, you need a system that ties every purchase request to a budget the moment it’s submitted. That means no more guesswork or retroactive reporting. Everyone in the team should be able to see what’s committed and what’s still available.

Don’t just track spend, allocate it. That’s what keeps you in control.

3. Standardize how your team buys

Lack of consistency is one of the biggest sources of inefficiency in procurement. If different departments use different vendors, skip steps, or submit incomplete requests, your team ends up spending more time correcting errors than making smart purchasing decisions.

Instead, set up clear, policy-driven purchasing workflows. Decide how users should submit requests, what gets routed where, and who needs to approve it. Then build those policies into your system, rather than circulating a PDF that gets ignored for the most part. 

Don’t see this as micromanaging. It’s all about making smart, compliant purchasing the default. When processes are easy to follow and embedded in the tools your team already uses, people follow them.

4. Invest in procurement automation that fits your business size and phase

Not every business needs an enterprise-level procurement suite. But if you’re still managing everything manually, you’re risking bigger problems like overspending, audits issues, and fraud. 

Modern procure-to-pay platforms let you automate requisitions, approvals, purchase orders (POs), AP, invoice matching and approvals, and spend analysis, without the complexity of large-scale ERP systems.

Start small if you need to and focus on one or two areas where automation can remove the most friction, like requisition and approval routing or purchase order generation. Then expand from there. The goal is to reduce purchasing cycles and increase control without overwhelming your team.

5. Give stakeholders the spend visibility they actually need

Finance doesn’t just want to know how much was spent. They want to know who spent it, on what, and why. Department heads want to know where their budgets stand, and leadership wants to feel confident that money is being managed responsibly.

Procurement is about giving the right people the right information at the right time. That means clear dashboards, custom reports, audit-ready records, and flexible views tailored to your business structure, whether by project, department, funding source, or whatever fits your needs.

If you can’t answer “Where is our money going?” in seconds, it’s time to fix that as soon as possible.

How to streamline your procurement process with Fraxion

Mid-sized companies have unique challenges. You’re growing fast. You’re dealing with lean teams and tight budgets. You simply can’t afford for procurement to slow you down or to spin out of control.

Fraxion helps you transition from outdated, manual workflows to a proactive, transparent, and policy-compliant procurement system that actually works for your teams.

Here’s how Fraxion helps you take control:

  • Routes purchase requests automatically

Submit requests with ease from the mobile or web app and route approvals via automated workflows that reflect your policies; whether it’s a single-step or multi-level approval chain. Fraxion ensures every request follows the correct path with budget visibility and notifications that keep things moving without the follow-up emails.

  • Tracks budgets in real-time

With Fraxion, you can see exactly what’s been spent, what’s committed, and what’s left in your budget before approving a purchase. That means no more surprises at month-end or overspending that’s only caught after-the-fact.

  • Eliminates rogue and duplicate purchases

Guide your teams to purchase from preferred vendors using PunchOut or hosted Catalogs, supported by internal controls. Fraxion prevents off-contract spending and flags duplicate purchases before they go through, keeping your procurement strategy focused and cost-effective, while alleviating risk and stress in AP.

  • Enforces 2- or 3-way matching

Easily match digital purchase orders, invoices, and delivery receipts to ensure accuracy before payment. This reduces the risk of paying for goods not received, flags discrepancies early, and helps prevent fraud and overspending.

  • Audit-readiness by default

Every transaction is logged, traceable via digital records and compliant. You’ll never need to search through hundreds of emails, paper trails, or track down lost documents when auditors come knocking at your door. 

  • Enable full visibility across teams

Whether your organization operates across multiple locations, departments, or funding sources, Fraxion gives you centralized insight. Know exactly who’s buying what, when, and why. This will help you make better, faster decisions with confidence.

  • Seamlessly connect with finance systems

Fraxion integrates effortlessly with your accounting / ERP system to eliminate data silos, manual entry, and human error. Automatically syncing data ensures that financial records stay accurate and up to date. With real-time data flowing between systems, teams can work more efficiently — and finance can focus on strategic oversight.

Want to see how Fraxion works? 

Book a personalized demo and take the first step toward a more accountable, efficient procurement process that drives cost savings.

FAQs

What are the signs of a broken procurement process?

Common red flags of a broken procurement process include inconsistent approval workflows, budget overruns, duplicate vendor orders, poor spend visibility, and delays in accounts payable. If you're relying on emails, spreadsheets, or ad hoc conversations to approve purchases, it may be time to reassess your procurement system.

How can mid-sized businesses improve procurement efficiency?

To improve procurement efficiency, start by mapping your current procurement workflow, identifying gaps, and implementing policy-driven processes. Automation is key; tools that route approvals, check budgets, and track spend in real time can eliminate manual delays and improve accuracy across departments.

What role does budget visibility play in fixing procurement problems?

Real-time budget visibility prevents overspending and keeps departments accountable. Connecting each purchase request to a live budget at the point of approval ensures better financial control and more confident decision-making across teams.

Why is automation important in procurement for mid-sized companies?

Automation helps reduce manual errors, cut down on cycle times, and enforce policy compliance. It allows lean procurement and finance teams to scale efficiently by replacing manual workflows with digital systems.

How does procurement software like Fraxion help fix broken workflows?

Fraxion centralizes procurement data, automates approvals, enforces budget checks, and tracks all purchases with spend analytics capabilities and full audit trails. It helps mid-sized businesses gain control over spend, eliminate rogue purchasing, and drive compliance without overcomplicating workflows.