Procurement software solutions for savings and efficiency

Procurement software solutions offer numerous benefits for enterprises. They streamline procurement management, automate manual tasks, and provide real-time data that enables more informed purchasing decisions for increased cost savings.

According to the Chartered Institute of Procurement & Supply, 69 percent of procurement leaders report spending more than $50 million on goods and services annually. At that scale, using technology to save even half a percent could add up to more than $250,000 per year.

To realize these kinds of results, it’s essential to understand what procurement software is, the types available, and which key features to consider during your search.

What are procurement software solutions?

Procurement software solutions are cloud-based tools designed to streamline and automate an organization’s procurement process. Also called e-procurement software, these solutions help reduce time to purchase, minimize errors in the supply chain, and provide increased control over spending. 

Some procurement solutions improve efficiency throughout the entire procurement lifecycle, beginning with strategic sourcing and continuing through delivery and supplier relationship management. Others may only focus on a specific piece of the procurement process, such as contract management or spend analysis.

Types of procurement software

There are different types of procurement software, ranging from comprehensive tools that manage the entire procurement process to ones that focus on a specific part. Common software solution types include:

• Procurement management software: This is a broad umbrella term for software that manages procurement activities. Depending on the tool, it may support everything from sourcing and purchasing to payments and vendor management. Specific types of procurement software are considered subsets of this category.

• Procure-to-pay software: These tools enhance efficiency in the procure-to-pay process, handling everything from purchase order creation to final payment. They focus on the transactional aspects of purchasing but don’t aid in product sourcing or vendor selection. 

• Source-to-pay software: Source-to-pay solutions offer a more comprehensive approach, managing the bulk of the procurement process by helping with strategic sourcing all the way through to payment. These systems aid in supplier management and onboarding as well as the transactional functionalities of procure-to-pay software.

• Contract management software: Contract management tools help you create, negotiate, and track contracts with suppliers. They can standardize and automate the process to reduce risk, increase compliance, and enhance operational efficiency.

• Accounts payable (AP) software: AP solutions manage and automate financial aspects of the procurement process, including tracking and verifying invoices as well as processing payments. They help organizations meet due dates and reduce errors from manual processes for more accurate recordkeeping.

• Spend analysis software: These tools collect and analyze spending data to reveal where company money is going. Spend analysis software can also help identify cost-saving opportunities and support more strategic decision-making.

   

Key benefits of procurement software

Procurement software solutions help save businesses time and money while increasing productivity and protecting against human errors. Here are a few specific ways this technology drives these results.

Spend visibility and budget controls

Many procurement tools come with some form of spend management solution that provides real-time visibility into your company’s spending habits. With these tools, you can easily track spending patterns and better negotiate contracts with suppliers for more favorable pricing, reducing costs. 

Additionally, some procurement solutions offer features to help ensure compliance with your procurement policies. With Amazon Business, for example, you can set budget controls and guide employees to preferred vendors to reduce risk.

Granular analytics and purchasing insights

Aside from analyzing spending, some procurement solutions also use analytics dashboards to track actionable insights on factors like supplier performance and market trends. Your organization can evaluate suppliers on pricing, delivery times, quality, and reliability to help identify top performers. 

By analyzing market trends, you can also forecast potential supply chain disruptions and adapt to changing market conditions.

Bulk purchasing and volume discounts

B2B ecommerce solutions can significantly ease the procurement process by making it as simple as shopping online. When you use a solution designed specifically for businesses, such as Amazon Business, you get not only a familiar experience but also business-only pricing, including bulk purchasing options and volume discounts.

If there are items you need on a recurring basis, setting up automatic reorders can also earn you discounts while increasing operational efficiency.

Supplier and compliance management

Procurement management software lets you centralize your procurement activities, including supplier contracts and purchase history. This makes it easy to find information about a specific supplier or purchase in case of an issue or audit. The information is automatically tracked and saved so you don’t need to worry about human error.

Key features to look for in procurement software

Once you’re ready to implement procurement software, the next step is determining which features are must-haves to ensure you pick the most fitting solution. To do this, start by making a list of challenges your procurement tool needs to solve so you can narrow down which types of procurement software to consider.

Once you have it narrowed down, prioritize the following features as you shop around for options.

AI-powered automation

You can use automation in almost every step of the procurement process to help increase efficiency. Examples of tasks worth automating include:

• Generating purchase orders based on purchase requests

• Sending simple communications and request for proposal (RFP) bid responses to suppliers 

• Creating automatic approval workflows to speed up the process

• Monitoring supplier performance

• Staying on top of contract dates, delivery times, and inventory reorders

Look into the automation features of each software option you’re considering to determine which would be most helpful for your existing workflows.

Integrations

It’s important that your new software solution “talks” to your current systems, and it does this through integrations. Integrations are helpful because they can work with your existing procurement software without requiring you to overhaul your entire tech stack. 

For example, if you need access to a wide range of vetted suppliers and spend control functionality, using a solution like Amazon Business as a punchout, punch-in, integrated search, or hosted catalog might be ideal. All these options allow you to access Amazon's solution and budget management features in combination with your existing software. You have the choice of integrating an online shopping interface into your system or simply checking out using your own portal.

Make sure the solutions you're evaluating integrate with your enterprise resource planning (ERP) software or other systems to ensure a seamless transition.

Compliance features

Compliance is critical in procurement. Look for features like automated approval processes, customizable budget thresholds, and the ability to block or restrict certain product categories. Some solutions also offer automations like Amazon Business’ 3-Way Match in accounts payable, which instantly confirms the accuracy of invoices against receipts and purchase orders to reduce errors and prevent fraud.

User experience

While user experience is easy to overlook during the evaluation phase, having an intuitive procurement solution can save teams significant training time and expense. 

According to a 2023 study in Computers in Human Behaviors Reports, a user-friendly UX can also lead to less resistance during a digital transformation, as employees who think new digital tools are easy to use are more likely to perceive them as helpful.

Streamline procurement efficiency with Amazon Business

Procurement software solutions are essential for enterprises looking to save money in procurement. These tools help automate manual tasks, increase compliance, and enable data-driven decisions that lead to better financial performance. Yet, according to the 2025 Amazon Business State of Procurement Data Report, 20 percent of procurement decision-makers say they still lack systems to monitor and manage risk, highlighting a gap in many organizations' procurement practices.

Amazon Business provides procurement software solutions that help organizations automate purchasing, enhance spend visibility, and manage suppliers more efficiently. With features like ERP integration, approval workflows, bulk purchasing options, and compliance-ready invoicing, the solution supports procurement teams in streamlining operations while maintaining policy compliance and control over costs. 

Sign up for your free Amazon Business account, or talk with our sales team to discover how Amazon Business can integrate seamlessly with your existing procurement software and drive efficiency, compliance, and visibility.