How to Choose the Best Procurement Software For Small Businesses

Procurement is an integral part of every small business. It is an essential component of any firm, from sourcing to gaining and sustaining supplier partnerships. However, selecting the finest procurement tool for small businesses can be difficult.

Given the range of options available, it is necessary to take a comprehensive approach to acquire procurement software in order to make the best decision possible. To help you do that, we’ve provided this article.

Photo by Tim Mossholder on Unsplash 

Key Points to Consider

There are many factors to consider when choosing the right procurement software for small businesses. Here are five main factors.


This is one of the most important factors to consider while selecting a new solution. Support is critical for achieving a satisfactory return on investment (ROI) and long-term company growth. Also, one of the most significant factors to consider when selecting a new system is the availability of a large support eco-system and the flexibility to switch suppliers.


Some of the elements your firm may require to optimize its procurement activities include communications infrastructure, automated workflows, document sharing, project tracking, and procure-to-pay.

The best procurement solution for your small business should have ways to address all of these issues as efficiently as feasible.


The system is expected to generate reports for specific time frames based on the set parameters while consuming the least amount of your time, allowing you to manage your business and accurately evaluate all parts of it.


You may be looking for a procurement system that fits your tight budget, but it’s not a good idea to undercut so much that you wind up with cheap, inadequate tools that no one wants.

The correct question is: What do we want to get out of the software, and is it worth the price? Thinking from a value perspective allows you to adapt your budget to match your needs, helping you pay only for features that you really need.


As you expand, the business will confront new obstacles in areas such as communication, technology, and workflows. You may be using procurement tools right now, but it’s simple to outgrow a platform without realising it if you’re not paying attention to the company’s procurement demands.

Bottom Line

We could’ve added many more factors to the list. However, these are enough to help you find the right procurement software for your small business. At Penny, we score highly on each of these elements, helping you scale effortlessly. For more information, please  contact us.



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Frequently Asked Questions

Penny is a cloud-based Procure-To-Pay system. penny helps you digitize and manage your full procurement cycle from request to approval. Manage RFQs to vendors, compare quotations, send POs and even payment. penny was designed to make things easy and consolidate all of your organization’s spending needs into one intelligent system.

  • Allocate, manage and monitor budgets by expense accounts, projects, departments, location, teams..etc 
  • Streamlining procurement means requests, approvals, and POs won’t be lost in emails or offline.  
  • History and records of requests and purchases can be extracted and tracked easily via the platform. 
  • Product requests are more accurate through the catalog, and hence avoid purchasing mistakes.
  • Reports and analysis can be extracted from the platform, giving you a consolidated data center for all your procurement activities.
  • penny is cloud-based and an easy to use platform. The action-board gives your team a user-friendly and simple experience.

Yes, penny is designed to handle complex procurement operations. We make EVERYTHING simple. Via the contract management feature, you can set the terms and conditions of your contract, and the system will recognize the products and the vendors of your request and match it with specified terms of your contract. Easy.

Putting you in control of your spending is integral to our mission. penny allows you to create Expense Accounts that match your P&L, and assign budgets to them. For example, you can assign $X for your “Travel Budget” and reflect on the budget before approving a travel request. In addition, penny allows you to set budgets for cost centers like projects, departments, locations, and so much more. With penny, you can extract reports and view your spend per Expense Accounts or cost center.

Yes. If your product search finds no results, you can submit a non-standard request.

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