Definition

procurement software

Procurement software is a computer program or suite that allows an organization to automate the processes of purchasing materials and maintaining an inventory of goods. Procurement software can generate purchase orders, execute the ordering process online, match invoices to materials received, and pay all bills electronically.

In more complete terms, well-written procurement software can carry out the following functions:

  • Create an original purchase order based on need, inputted from appropriate personnel.
  • Verify a purchase order with line items to be completed by a vendor.
  • Submit a pending purchase order to appropriate personnel for approval or rejection.
  • Automate electronic purchase-order transmission.
  • Generate reminders to confirm recent purchase orders (or confirm recent cancellations).
  • Maintain an inventory of goods sufficient to prevent spot shortages.
  • Execute financial and inventory-related transactions as materials arrive.
  • Gather data and analyze trends to maximize or improve profitability.
  • Streamline administration and standardization across multiple platforms.

 

Contributor(s): Stan Gibilisco
This was last updated in March 2012
Posted by: Margaret Rouse

Email Alerts

Register now to receive SearchFinancialApplications.com-related news, tips and more, delivered to your inbox.
By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

More News and Tutorials

Do you have something to add to this definition? Let us know.

Send your comments to techterms@whatis.com

There are Comments. Add yours.

 
TIP: Want to include a code block in your comment? Use <pre> or <code> tags around the desired text. Ex: <code>insert code</code>

REGISTER or login:

Forgot Password?
By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy
Sort by: OldestNewest

Forgot Password?

No problem! Submit your e-mail address below. We'll send you an email containing your password.

Your password has been sent to: