Digitalization of Procurement for Complete Beginners: How much will it cost?

The Total Cost of Procurement Digitalization is, of course, a key factor for any smaller company. First of all, it must be said that costs can vary significantly depending on the scope and type of solution. Traditionally, smaller companies chose between software as a service (SaaS subscription) or a one-time license + maintenance fee (on-premise). Today, however, the SaaS model dominates — renting cloud software for a monthly or annual fee, which allows smaller firms to get a lot of value for relatively little money.

For small businesses, basic e-procurement tools can cost just a few thousand CZK per month, depending on the number of users and features. This fee usually includes licenses for multiple users and support. Some providers even offer free versions with limited features or very affordable starter packages (e.g., for 2–5 buyers). But beware — you get what you pay for, so don’t cut corners in the wrong place. In cases of very low transaction volumes, you can also consider a pay-per-transaction model (per tender, order, invoice, or financial volume). However, don’t expect the same level of support from the provider. Experience also shows that even a small fee discourages users — instead of using the software naturally, they hesitate and may resist your digitalization goals.

In addition to license and support fees, you also need to account for one-time implementation costs. With cloud solutions, you don’t pay for infrastructure, but the vendor still has to configure the system, provide training, import data, and possibly integrate it with your ERP. Some vendors include basic onboarding in the license fee, but more often implementation is offered separately — sometimes included, sometimes billed as consulting services. For smaller firms, deployment can often be completed with vendor support within a few weeks and at low cost.

⚠️ Watch out for hidden costs! Prefer vendors with transparent pricing models, where you clearly understand what you’re paying for and can tailor a “package” to your needs. And don’t just focus on costs — weigh them against the expected savings and ROI.

The actual quote will always depend on your specific requirements: number of users, modules, purchase volume, customization needs, and the provider’s pricing policy. We recommend approaching several vendors and requesting a detailed breakdown.

Cloud-based SaaS solutions typically mean lower upfront costs (no hardware or database licenses) and expenses spread over time in monthly payments. This lowers entry barriers. On-premise systems may be cheaper in total, but they often require high upfront investment and place heavy demands on your IT team. That’s why today most smaller companies choose SaaS — it’s more flexible, easier to scale up or down, and you only pay for what you use.

👉 In summary: Procurement digitalization today is relatively inexpensive and accessible. Scalable solutions exist for businesses of any size. When assessing costs, don’t just look at the expense side — put the benefits on the other scale. If savings are many times higher than the costs, there’s no reason to delay, because every day without digital procurement is costing you money.

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