Digitalization of procurement for complete beginners: How to choose suitable procurement software?

Once you decide that e-procurement makes sense, you face the choice of suitable software. There are many solutions on the market; for tendering you can find simple e-auction tools as well as comprehensive suites such as Supplier Relationship Management. For a company just starting out, it is essential to proceed systematically. Below we provide a simple how-to.

👉 It is not true that the simplest and cheapest is the best. But it is equally untrue that an expensive and sophisticated option will best cover all our needs.

🗺️ Clarify your needs and goals: First, map internally where the shoe pinches the most. List the main problems and gaps in the current process — e.g., uncontrolled spending outside the procurement department, lengthy approval of requests, frequent errors in orders, weak spend analysis, etc. This honest assessment will reveal critical points the software should address. At the same time, set strategic objectives you want to achieve. Typically, this is cost savings in %, shortening the time from request to order, introducing supplier evaluation, etc. Clear expectations will help you choose the right tool.

👉 Clarify where the procurement process hurts and which strategic goals you need to meet.

🧍 Involve key people: Several departments touch the procurement process — finance, accounting, production or operations, company leadership. Create a team of key stakeholders from relevant units and include them in the selection process from the start. Their support and input will ensure the chosen solution suits the entire organization and will make both budget approval and user adoption easier. It is especially useful to involve IT to consult technical requirements, even though today’s solutions are often cloud-based and place far fewer demands on IT.

👉 Involve key stakeholders in the software selection. Their support is crucial for securing funding and user adoption.

🔖 Decide on the scope and type of solution: Based on the identified needs, decide which procurement areas you want to digitalize first. Some start with a tendering module (e-sourcing), others prefer to digitalize orders and invoicing (procure-to-pay). Many beginners start with source-to-contract — tenders and contracts — because that’s where the most money is hidden in the short term. But order-to-pay — from order to payment — is not a bad idea either, so that you establish order in purchasing and spending right at the start. In any case, you do not have to implement everything at once. The ideal is a modular solution where you can add more features later. In other words, it is important that the chosen software can cover the processes most important to you while also allowing expansion in the future.

👉 Roll the system out gradually, in line with point one. Insist on a modular solution so you can expand over time.

📊 Set a budget and ROI requirements: Selecting software is not only a technical but also a financial decision. Be clear about how much you are willing and able to invest — not only in software licenses, but also in implementation, integration, and operations. Consider the expected benefits. For example, if you estimate that digitalization will save the work of 1 person and 5% of purchase prices, then as long as the annual software costs do not exceed X, it will still be worthwhile. Ideally, insist that the investment pay back in 12–18 months, which is realistic for most modern electronic tools.

👉 Seek solutions with clear ROI. It will motivate you and help with further development.

✅ Look for a solution tailored to your needs: When assessing specific products, do not be dazzled by endless feature lists. For a smaller company, it often makes no sense to buy a “Ferrari” when you need a bicycle. Focus on adapting the software to your needs. A good e-procurement tool should be configurable to your processes. On the other hand, remember that software is set up according to good practices from many companies, so always consider whether the software should adapt to you or you to it. Experience shows that the optimal ratio is 90% standard setup and 10% customization.

👉 If you are starting out, remember that less is more. Ask to see how the system adapts to your needs and processes — but don’t overdo it!

🔒 Reliability and cybersecurity: Quality software and a reliable vendor are fundamental. When choosing, assess the vendor’s stability and trustworthiness — how many customers they have, references in your industry, how often they release updates, how responsive support is. The software must also be secure and stable, ideally operated in the cloud. A cloud solution saves you the hassle of your own server and maintenance; moreover, it is now considered very secure — 65% of IT experts state that cloud services are safer and more convenient than in-house systems. With a reputable provider, data are encrypted and backed up, so there is less risk of loss or unauthorized access than if everything ran on your outdated on-premise server.

👉 Verify reliability and cybersecurity. Cloud solutions are the standard today and safer than your own servers.

🔗 Integration with enterprise software: Make sure the software you choose can be connected to your existing systems, especially your enterprise software. This will prevent duplicate data entry. Ideally, the new procurement system should automatically take over item, supplier, and order data from your ERP and, conversely, feed back information on tenders, purchases, and invoices. But don’t rush or overdo it! Try everything out before integrating, and integrate only what truly adds value.

👉 Thought-out integration saves a lot of administration. Start modestly and integrate systems over time.

👩‍💻 User-friendliness for users: Remember that both your employees and suppliers will use the system. Require a simple and clear interface. Suppliers should be able to register easily, participate in e-auctions, and submit bids. For internal users (requesters, approvers), work in the system should be intuitive as well. The simpler the controls, the faster the team will adopt it and the less resistance to change you will face. Ask for a demo or trial version.

👉 Use a demo and prefer a simple, clear interface for both internal and external users.

💬 Customer support: The last criterion is the vendor’s customer support. Find out what forms of support are offered (hotline, email, consultant on call), in which language and hours, and how quickly issues are resolved. For beginners, reliable support is priceless. Do not trust paper alone; ask about the experience of other companies of similar size or in the same industry. Ideally, contact an existing user of the system and ask for an honest assessment.

👉 Verify the quality of customer support with your own eyes.

From the above, it is clear that choosing the right software will require some time and careful research. The decision will affect your processes for years to come, so do not underestimate this phase. If you follow our guide, you will minimize mistakes and choose a high-quality, affordable, and user-friendly solution with smooth implementation that will enable you to quickly achieve the expected benefits.

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