Cloud procurement software: A strategic guide for leaders

Operational inefficiencies, siloed data, and a lack of real-time visibility—these are three key challenges that can impact nearly every part of a day-to-day procurement process.

While it’s critical for teams to maintain control over these areas, trying to solve them and scale an organization at the same time can prove tricky. But the good news is that procurement teams can access powerful technology to streamline their procure-to-pay operations. This is where cloud-based procurement software enters the fold.

Below, you’ll learn what cloud-based procurement software does, its potential impact on your operations, and how to sync it with your other systems so you can make the most of its features.

What is cloud-based procurement software?

Cloud-based procurement software is a solution that lives in the cloud. Teams access it online rather than installing a tool on their computers or their organization’s server. 

As opposed to on-premises systems, cloud-based procurement solutions offer greater flexibility and agility. Because of this, they can help procurement teams keep up with shifting industry landscapes, resolve operational bottlenecks, and ultimately save money. 

There are four important differences between cloud and on-premises procurement systems:

1. Accessibility: Teams install on-premises procurement tools onto their computer, while cloud-based software exists in the cloud.

2. Scalability: On-premises tools tend to have growth restrictions since they face limitations in computer storage and functionality.

3. Integration: Cloud-based software seamlessly connects with a wide variety of systems, but computer-based software confines on-premises tools to a physical network.

4. Price: Cloud-based software usually has a lower up-front fee and more predictable pricing structure, while on-premises tools require more investment to get started.

    

Due to its widespread impact on procurement operations, cloud-based software can prove to be a valuable asset for procurement teams across various industries. 

Why cloud procurement is a strategic priority in 2025

Past procurement landscapes might’ve operated sufficiently with traditional on-premises systems and data-packed spreadsheets. However, in an increasingly complex modern supply chain, procurement teams now need to function with more agility and efficiency. As a result, effective procurement is often a strategic advantage that can make or break your entire organization.

Here’s how cloud procurement solutions can strategically support your organization:

• Stay ahead of the competition: Easy access to technology has raised the bar for organizations across the board, increasing competitiveness and making agile technology necessary. 

• Control your finances: Cloud-based platforms connect all your systems, which allows you to build accurate financial budgets, control spending, and avoid the financial blind spots that result from siloed data.

• Respond to volatile supply chains: If one supplier suddenly can’t provide the goods or services you need, you’ll have to pivot at minimal cost. The faster your team can adjust to interruptions like this, the more likely you can avoid expenses from workflow delays. 

   

Without agility, efficiency, and insight, you’re more likely to see enterprise growth plateau. Knowing this, many organizations are turning to cloud adoption and solutions like Amazon Web Services (AWS) and Amazon Business to support their operations. Doing this gives such organizations greater transparency and a better chance of gaining a competitive, data-driven edge. 

How AWS and Amazon Business power cloud procurement transformation

AWS, Amazon’s cloud-based platform, gives users access to databases and other similar services without installing software on their devices. It can help procurement teams who are looking to simplify their operations, especially when they pair it with Amazon Business, an e-procurement software that provides tools for invoice and RFP approvals, contract compliance, robust analytics, and seamless integrations. 

You can think of AWS as your organization’s infrastructure background—a secure, scalable, cloud-based solution that can boost organization-wide procurement systems’ effectiveness. When you link it with Amazon Business, your team can enjoy access to procurement-specific features that promote transparency and efficiency. 

But Amazon Business and AWS aren’t an isolated procurement pairing. Both can team up with other procurement platforms, like SAP Ariba or Coupa. This way, users can build a strategic procurement tech stack without needing to manage complicated integrations or risking information siloes. 

5 essential features for modern cloud procurement tools

Now that you have an understanding of how modern cloud procurement tools work, you can use the below breakdown of the key features and functionalities to look for when considering your options:

1. Automated approval workflows

Manual approval processes can slow operations and increase the odds of costly errors—but automation could be your team’s ticket to resolving these challenges. 

Solutions like Amazon Business feature automatic two- and three-way matching, which allows you to quickly verify invoices by comparing them to purchase orders or supplier receipts before you send them to Accounts Payable. This way, you can avoid back-and-forth approval workflows and delayed invoice processing. 

This solution also offers even greater purchasing control through configurable purchasing roles. You can set up each user’s account with specific purchasing guidelines to inform them which suppliers to choose and ensure that purchases stick to your budget. Then, when a buyer places an order within your purchasing guidelines, the automatic purchase requisition approval can be smooth and effective.

2. Spend visibility and analytics

With so much movement of goods and finances, it’s useful to know where everything goes at all times. Amazon Business Spend Visibility (a Business Prime Feature) grants you this insight, along with ongoing spend analysis for more strategic spend management. Operational analytics also provide a deeper understanding of your workflows and inventory management. 

With ample data comes more reliable insight—but you need somewhere reliable to place this data too. AWS data storage helps ensure you never run out of room for your historical and current procurement data. It’s a scalable, customizable cloud solution that can meet your changing business needs. 

3. Streamlined supplier relationship management

Supplier management is a core part of a procurement source-to-pay workflow, yet many teams often face challenges when finding a balance between strategically sourcing high-quality vendors and enforcing supply chain resilience. It can also be difficult to make sure that buyers purchase from approved suppliers. 

Cloud-procurement platforms help in both areas. For example, Amazon Business features certified supplier tags that indicate which suppliers users should prioritize when placing orders. You can also use Guided Buying to direct buyers to desired products and suppliers when making unplanned purchases or spot buys.

Beyond these features, AWS provides additional safety through supplier vetting and robust security frameworks. With these frameworks in place, you can feel more confident that every purchase is safe and contract-compliant.

4. Integration-readiness

Siloes prevent transparency, which makes it harder for your procurement teams to operate on the same page and risks errors, overpayments, underpayments, or bottlenecks. To avoid data siloes and maintain smart business buying, all your systems need to talk to each other. 

You can accomplish this by looking for a cloud-based procurement management software that connects to your existing systems and centralizes data. Amazon Business, for instance, integrates with over 300 systems, including cloud-based SaaS and ERP tools, which allows you to build a procurement technology stack that’s both fully integrated and tailored to your needs. 

When you combine Amazon Business with AWS application integrations, you can connect all your dispersed systems so they share information, keep everyone up to date, and help your team make informed decisions. 

5. Contract lifecycle and compliance tools

To stay competitive and profitable, effective contract management is crucial. That can look like knowing when to start renewal conversations to avoid operational disruptions, using real-time data to negotiate for favorable contract terms, and efficiently onboarding new vendors.

Procurement solutions like Amazon Business allow you to track a contract’s lifecycle, compare performance data to the agreement conditions, and ensure that suppliers uphold their end of the deal. You can also compare suppliers to your internal policies so you know whether they’re a good fit for your organization before finalizing a contract.

If you link Amazon Business with AWS, you can also access compliance tools that help you enforce security policies. That way, every purchase will align with your internal guidelines and adhere to regulations like HIPAA and GDPR. 

5 steps for successful cloud procurement software implementation

Knowing that your team is ready for cloud procurement software is the first step. Next, you’ll need to choose and effectively implement a solution. Here are five steps to help you get started: 

1. Identify internal pain points: Touch base with procurement stakeholders to understand your organization’s most common challenges and pinpoint what exactly you need out of your procurement software.

2. Evaluate software based on org maturity: Compare your current procurement operations to your goals to determine the type of software you need to support your organization’s growth. 

3. Assess integrations, migration, and data security: Take note of your present procurement systems, how data flows between them, and their security levels so you can choose a software that seamlessly integrates with your current tech stack. 

4. Onboard and train your teams: Create documentation and training so your team has ample time to get to know the new software and understand how it will impact their day-to-day tasks. 

5. Build feedback loops and iterate: Check on the software regularly, gather input from team members, and collect network data to keep your workflow as effective and user-friendly as possible. 

    

Cloud procurement software installation is streamlined and straightforward. Not only can the solution you choose optimize your current network, but it also sets up your organization for long-term growth.

Take the next step toward smarter procurement with cloud procurement software

Trying to scale operations, drive revenue, and mitigate risk all at once is challenging for any procurement team—but doing so in a procurement landscape that’s constantly shifting can be even more difficult. But with accurate, real-time data and integrative software, your team’s ability to be agile, profitable, and scalable can increase substantially. And as a result, you’ll gain more control over your finances and operations.

With cloud-based procurement software like Amazon Business, you’ll get an efficient, innovative, and scalable procurement ecosystem that supports long-term growth and bolsters purchase and order control. Additionally, AWS provides background support that seamlessly integrates existing systems and boosts security.

Is your team ready to kickstart its current and future growth? Contact Amazon Business today to explore how cloud procurement software can support your procurement strategy with scalable, integrated solutions.