Procurement software isn’t just another tool in the IT stack. It is a strategic engine that transforms how organizations make decisions, manage governance, and save money. At Penny Software, we see procurement every day as more than just transactions. It is about the intelligence and governance behind every decision.
Here are three things you need to know:
1. It’s not about digitizing procurement, it’s about digitizing procurement decisions
Many companies assume procurement software is about moving from paper to digital purchase orders. That’s a fraction of the story. The real power lies in digitizing decisions, capturing every request, approval, negotiation, and outcome in one place.
With a digital trail of decision-making, companies gain:
- Visibility: who approved what, when, and why.
- Benchmarking: comparing offers to ensure the best value.
- Speed & accountability: faster cycles with transparent approvals.
Procurement software is less about digitizing “paperwork” and more about making every decision smarter, faster, and measurable.
2. No governance over procurement decisions means loose governance across the board.
Procurement decisions touch every corner of the business, from sourcing raw materials to selecting marketing agencies. Without governance here, governance everywhere else is incomplete.
According to industry benchmarks, procurement spend often accounts for 40–70% of a company’s total costs. If there’s no oversight or control at this level, organizations risk leakage, fraud, and misaligned spending.
Procurement software enforces governance by:
- Standardizing approval workflows.
- Centralizing vendor management.
- Enabling audit-ready records.
Simply put: if you don’t govern procurement, you’re not governing your business.
3. It’s a low hanging fruit for savings
While many transformation projects take years to realize ROI, procurement software delivers tangible savings fast.
At Penny Software, our customers achieve on average:
- 6.11% in direct savings – measured as the difference between the initial vendor offer and the final accepted offer.
- 27.5% in cost avoidance – measured as the gap between the accepted offer and the average of all competing offers.
Put simply, procurement software doesn’t just “manage spend,” it pays for itself many times over. For a company with $100M in annual procurement, that’s more than $30M in value creation every single year.
The bottom line
Procurement software is not a back-office nice-to-have, it’s a strategic lever for decision intelligence, governance, and savings. The companies that act now gain visibility, accountability, and millions in measurable value.
👉 Book a personalized demo with Penny Software today and see how we can help your organization unlock smarter decisions and guaranteed savings.
