Purchasing solutions are a means of increasing your business's bottom line. Purchasing solutions enable companies to save money by keeping track of invoices, purchase orders, suppliers and vendors so that money does not fall through the cracks either by time spent or inefficiency. Purchase order software is increasingly important because businesses have cut back on using purchase orders which takes a lot of time, yet experts believe purchase orders are important for different reasons.

Using purchasing software for supplier relationship management (SRM) software, auction software and inventory tracking applications is easier today than previous generation purchasing software. More applications are bundled into one program and increasing online and web-based purchasing solutions are on the market.

1. Software for purchasing comes in basically two ways—via traditional software programs or purchasing solutions based web-based (online) platforms.

2. Procurement professionals believe companies that do not use purchase orders because they are time consuming should instead look at using purchasing system software.

3. Online purchasing software and web-based purchasing software have improved. These modes of purchasing solutions are increasingly favored by procurement managers for at least some part of their purchasing tasks.

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Use online purchasing software to compete and save money

One way procurement solutions have changed (and for the better according to procurement professionals), is by using the Internet as a means of ordering and paying for supplies. Approximately 80% of purchasing managers use online services for some procurement purposes.

I recommend: SciQuest produces four programs for source-to-settlement solutions. It also has procurement products developed for medical and government industries. Coupa On Demand offers a free trial period to use its product and doesn't require any hardware and software on your part.

Continue to use purchase orders using purchase order software

The temptation to not use purchase orders or cut back on their use too much is a mistake according to procurement specialists. While everyone agrees they are time-consuming and for that reason cost-prohibitive, using purchase order software will allow you to keep good documentation and not lose money in terms of time.

I recommend: Waverly Street produces purchasing management software including purchase order software. It provides a free trial of its product. If you like it, it is downloadable and standalone. PrimaSoft produces Purchase Order Organizer for Windows. It is geared for small businesses and there is a free download to try it out.

Used customized software for purchasing

Small business purchasing software solutions can require different kinds functions that are not in one complete software package. Using purchasing software solutions that are customized to your business's special needs could save you money in terms of time and staff.

I recommend: eRequester cuts down on the paperwork from bids to contracts to payments and more. It has a customizable portal and online registration function for vendors to register. Tuppas is the high-end model of purchasing software, but if your company is overrun with procurement paperwork of all sorts, it could save you money in the long run.

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Helpful advice for making the most of this Guide

• •  Using purchasing software for at least some part of your procurement process is something of a no-brainer. But also be alert to using purchasing software that comes with ease of use and functionality.

If your business still creates piles of purchasing paperwork and has buying bottlenecks, purchasing software offers quick salvation. As a business grows, the purchasing process gets more complex. Seeking quotes, tracking purchase orders, approving invoices, issuing payments and the need to control "maverick spenders" all make the procurement process harder to manage. It's easy for a business to leak cash by overspending, buying haphazardly or losing track of what's happening on the "spend" side.

That's when purchasing software and a variety of other purchasing or "spend management" solutions can help save the day. Some of your key options include:

1) Basic purchase order software that can keep track of your spending and procurement.
2) Full-featured purchasing software suites that automate and streamline all stages of the process, from initial requests for quotations (RFQs) to final approval of the invoice.
3) Web-based purchasing management solutions that let you management the procurement process online without having to install software at your location.
4) Turnkey "spend management" solutions — designed mostly for larger companies — that take a highly-detailed and hands-on approach to controlling every detail of your business spending, from RFQs and requisitions to receiving and invoice approval.

Business.com's "What Works for Business" blog is a great way to keep up with the latest solutions, trends and strategies for small and medium business.

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Automate your requisition-to-reconciliation process

Purchasing software is an essential tool for today's business and can integrate easily with existing financial systems.

I recommend: Look for easy-to-use purchasing software that's a good fit with your size company. Most complete purchasing management solutions are geared to mid-size and large companies, although some modular systems can be a goot fit with smaller, growing businesses. Firms such as Cougar Mountain, Aestiva, Palmas Development and Coda offer a range of purchasing software solutions. The Palmas Purchasing plus+ system, for example, includes various modules for automating purchasing, payables and material management.

Pack a web-based purchasing software punch

Fully web-based systems offer the convenience and cost-savings of online software.

I recommend: Verian Technologies, for example, offers a 100% web-based solution called Purchase Manager as the core of a purchasing and invoice automation solution. Verian's Purchase-to-Pay suite called ProcureIT includes components for invoice management, e-procurement, expense reimbursement and asset management.

Power up purchasing with enterprise solutions

Streamline your procurement and payables processes with high-end solutions.

I recommend: PurchasingNet is a top provider of eProcurement and ePayables solutions for a wide range of industries and has won awards from Supply & Demand Chain Executive magazine. eProcurement handles requisitions, approvals, purchasing, receiving, inventory control, catalog management and eSourcing. ePayables includes invoice processing, early payment discount management, eStatements and more. Complete "spend management" solutions from Ariba employ a full ansenal of financial weaponry, including software, sewrvices and consulting expertise for enterprise level companies. Ariba does this exclusively, with operations in 21 countries and 700 spend management experts on staff.

Boost your purchasing management expertise

Membership in a professional organization dedicated to the purchasing profession can improve your skills and save your business money.

I recommend: The American Purchasing Society is a professional association of buyers and purchasing managers. Membership benefits include publications, seminars, training and more. Check out the group's member survey of the best suppliers for business. There's also a helpful Purchasing Glossary at the website.

Purchasing solutions for any size company depends on the procurement problems that need fixing. Purchasing software basics consider the kinds of applications necessary for your company's purchasing or procurement functions. Procurement refers to functions such as inventory control, buying and leasing services and goods, billing and paying. Is your business medical technology or making a better mouse trap? The type of business or industry impacts your choice of purchasing software.

Purchasing software basics include functions such as the ability to track purchase orders. Small business purchasing software provides different functions for different purchasing needs. It can get rid of paperwork, track orders, control spending and perform many other tasks. The key is to get the software with the combination of applications that fit your business.

1. Purchase order software is a common application for most businesses. Smaller businesses can find it worthwhile to use online purchasing software, which provides basic procurement functions.

2. Software for purchasing can be bought with the exact combination of functions that you want.

3. Purchase order software is for basic business needs and helps small businesses save time and reduce paperwork.

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Spot the software for purchasing that you need

Getting the right purchasing management software for your company means assessing your type of business, purchase orders, requisitions, expense accounts and play in your company. With that information, you are in the position to shop for procurement software. Familiarize yourself with the purchasing products out there.

I recommend: Accounting Software 411 is a software directory that provides a number of kinds of purchasing and accounting programs to for you to research. Many purchasing software companies provide free demos of their products. Fast Company, a tech and business magazine, provides a directory of purchasing software products from which to find your solutions.

Consider online purchasing software

Online purchasing software can market at lower prices. It is a system that relies on a remote terminal to do all applications while the user works from their terminal. It is an outsourcing solution for purchasing functions.

I recommend: Ana Comp is an outsource purchasing software program that is designed to control the flow of invoices. Aestiva is a bit higher end and delivers customized purchasing and procurement applications.

Customize your purchasing solutions

The reality of software for purchasing is that there is a plethora of choices at your disposal. There is absolutely no need to buy any software solutions for purchasing that have applications you will never use.

I recommend: Spend Map customizes its basic purchasing software program to specific solutions for each company. 1View is a sophisticated purchasing specialist that provides hardware and software purchasing solutions and is pricey. However, it will reconfigure its applications for your specific business needs.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  The key to purchasing software basics begins with your budget and your company's future. Are you expanding in a couple of years? You should consider purchasing solutions that can be upgraded and that will handle more volume.

Learn purchasing software key terms before you determine which software solution best suits your own personal business needs. Decide what attributes you need in a program for your business to run smoothly, then find software that meets these requirements.

When you understand purchasing software key terms, it's easier for you to use the program itself. It can also help you communicate with others regarding analysis and solutions determined through the software usage.

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Spend management

Used mostly for larger companies, spend management refers to the way companies optimize spending money to control the money spent. The process involves analyzing business transactions and cutting costs wherever possible. Purchasing software often does the analysis for business professionals.

I recommend: Ariba claims to be a recognized leader in the area of spend management. It offers spend management solutions to businesses internationally and offers programming for small businesses and large corporations.

Purchase orders

Purchasing software keeps track of purchase orders (PO), which are commercial documents sent out to a seller from a buyer. The document indicates the amount of products ordered, the type of product and the price for the products.

I recommend: On its website, the University of Alabama at Birmingham defines a purchase order. It lists elements one might find on a typical purchase order.

Invoice

An invoice is another term for a bill. It tells a customer how much they owe a company. Purchasing software keeps track of invoices and also prints them out.

I recommend: Docstoc offers a visual example of what an invoice looks like.

Payments

Purchasing software keeps track of payments from a client. Sometimes clients pay a bill in the full amount, and sometimes they pay part of the bill over a period of time until they completely pay the bill off. Purchasing software keeps track of all the transactions.

I recommend: Technical Services Associates details the way its software electronically keeps track of payments. It also describes how it saves costs for businesses by doing this.

Request for quotations

The term requests for quotations (RFQs) refers to the process in which a business invites suppliers to bid on client products or services. This bidding includes not only the pricing of an item, but also information such as payment terms or length of contract. Purchasing software keeps track of all the bids and quotes.

I recommend: Go to 4hb.com for an example of a request for quotation. It shows the general template that your purchasing software might use.

Requisitions

Purchasing software keeps track of requisitions, which are formal, written requests for products or services.

I recommend: Microsoft offers a visual image showing a requisition form similar to one found in purchasing software programs.