A Kenyan business found its procurement processes overwhelmed by complex supplier networks and management, leading to inefficiencies and rising costs. Recognising the need for a more efficient approach, they realised they needed a procurement software to streamline operations.
Like this company, many businesses in Kenya face similar challenges. However, the right procurement software can efficiently cause a change and significantly impact productivity and cost management.
In this article, we share an overview of procurement management systems, their features and present a list of the top 5 procurement software in Kenya.
What Is Procurement Management and What Challenges Do Businesses Face?
Procurement management ensures that the right products or services are obtained at the best possible price, delivered on time, and meet the required quality standards. Challenges businesses face in the manual procurement management process are:
- Lack of Transparency and Visibility: Without a centralised system, it’s difficult for businesses to efficiently track spending, manage budgets, and maintain an accurate overview of their procurement activities. This lack of visibility can lead to poor decision-making and unexpected costs.
- Inefficient Processes: Manual procurement processes are prone to errors, delays, and miscommunication. Approvals can take too long, resulting in missed opportunities or supply chain disruptions.
- Supplier Management Issues: Maintaining strong relationships with suppliers is crucial, but without the right tools, businesses may struggle to monitor supplier performance, negotiate favourable terms, or ensure timely deliveries.
- Compliance Risks: Adhering to internal policies and external regulations is essential in procurement. However, manual processes can make it challenging to enforce compliance, increasing the risk of fraud or legal issues.
- Cost Overruns: Without proper control over procurement activities, businesses may face budget overruns, overpayments, or unexpected expenses, which can negatively impact profitability.
Businesses must understand that by utilising procurement management software, procurement operations can overcome the aforementioned challenges.
What is Procurement Software?
Procurement software is a platform that automates and streamlines the procurement process within a business. The software helps businesses to manage the various stages of procurement, from identifying the need for goods or services to final payment and supplier management.
How does Procurement Software Benefits Businesses?
Here’s how it benefits businesses:
- Enhanced Visibility: Procurement software offers real-time insights into spending, supplier performance, and the status of purchase orders. This visibility allows businesses to make informed decisions and maintain better control over their procurement processes.
- Streamlined Processes: Procurement software reduces errors and speeds up the procurement cycle through automated tasks. This leads to faster delivery times and improved operational efficiency.
- Improved Supplier Relationships: Procurement software helps businesses track supplier performance, manage contracts, and negotiate better terms. This fosters stronger, more reliable relationships with suppliers, ensuring consistent quality and timely deliveries.
- Cost Control: With budget tracking, spend analysis and automated approval workflows, procurement software helps businesses avoid overspending and ensure that all purchases align with their financial goals.
Best Procurement Software for Kenyan Businesses in 2024
Here is a top 5 list of procurement management software:
1. SeamlessProcure
SeamlessProcure is the best procurement software in Kenya, and it maximises every expenditure through centralised procurement management, intelligent automation, and analytics.
SeamlessProcure is cloud-based and designed to meet the needs of modern businesses. In Kenya, where efficient procurement is vital to maintaining a competitive edge, SeamlessProcure is becoming a popular choice for companies looking to simplify their purchasing workflows, control spending, and improve supplier management. Key features of SeamlessProcure include:
- Planning & Budgeting
- Customisable Requisition & Approval Workflows
- Centralised Procurement Management
- Real-time Spend Analytics
- Easy ERP integration
- Inventory Management
SeamlessProcure enables businesses in Nigeria, Ghana, and Kenya to easily integrate with existing ERP and accounting systems for unified operations, gain visibility into procurement activities, save costs, automate processes, reduce errors, and more.
Creating an account on SeamlessProcure is simple. Visit www.seamlessprocure.com to sign up for a 30-day free trial.
2. SYSPRO
SYSPRO offers a robust procurement module that allows businesses in Kenya to manage the entire procurement process, from requisition to payment, in one integrated platform. SYSPRO procurement module is designed to streamline procurement activities, ensuring that businesses can acquire the goods and services they need at the best prices and terms. Features include:
- Supplier Management
- Requisition and Approval Workflows
- Budget Control and Spend Management
- Integration with ERP systems
- Reporting and Analytics
3. Precoro
Precoro is a procure-to-pay system aimed at small and mid-sized businesses. Although Integration with ERP systems is a challenge, this procurement software designed to help businesses automate their procurement processes. Features include:
- Order Management
- Budget Tracking
- Supplier Management
- Approval Workflows
Limitations of Precoro include:
- Inventory module has limited functionality.
- Search tool is in nascent stage, hence difficult to use.
- Integration with accounting solutions and ERP such as Netsuite, SAP, Quickbook is difficult.
- Data import feature and ease in creating deleting purchase orders needs improvement.
4. Coupa procurement
Coupa procurement allows organisations to see and manage all their spending in one place, simplifying purchase requisition, order processes, and real-time tracking. Features include:
- Procurement Lifecycle Management
- Supplier Risk Management
- Supply Chain Collaboration
Limitations of Coupa Include:
- Complicated navigation and difficulty in getting the hang of the platform.
- Process of payment is difficult.
- Customer service only possible via chat.
5. SAP Ariba
SAP Ariba is a leading procurement solution used by businesses worldwide, including those in Kenya. Although it has limited reporting capabilities, SAP Ariba provides a comprehensive suite of procurement applications, from sourcing, contract management, purchasing, and invoicing to spend management. Features are:
- End-to-end procurement management
- Supplier collaboration and performance tracking
- Contract management
- Real-time spend analysis
- Integration with SAP ERP systems
Limitations of SAP Ariba are:
- Inefficient customer support
- Complexity in navigating the software, requires a learning curve
- Reporting and analytics feature is not so advanced
- Lack of real-time notification
What Businesses Should Look Out for in a Procurement Software
When selecting a procurement software in Kenya, businesses should consider the following key factors:
1. User-Friendly Interface: The procurement software must be easy to use, with a clean interface that requires minimal training. SeamlessProcure ticks this off with its simple user-friendly interface.
2. Integration Capabilities: A procurement software must integrate seamlessly with your existing systems, such as ERP, accounting, and inventory management tools. SeamlessProcure integration allows for smooth data flow across platforms, reducing the need for manual data entry and minimising errors.
3. Cloud-Based Accessibility: Opt for a cloud-based solution that provides flexibility and accessibility from anywhere. Interestingly, SeamlessProcure is useful for businesses with multiple locations or remote teams, as it allows everyone to access the system in real-time, regardless of their location.
4. Scalability: As your business grows, your procurement needs will evolve. Choose a procurement software solution that can scale with your business, accommodate increasing volumes of transactions, suppliers, and additional users without compromising performance.
Here’s What Businesses Need to Do
Choosing the right procurement software for your business in Kenya can be challenging due to the numerous available softwares. However, choosing SeamlessProcure, helps your business to spend smarter and grow faster.
SeamlessProcure optimises procurement management by streamlining manual processes and eliminating rogue spend. With informed purchasing decisions at its core, our platform enables precise cost control and curbs operational inefficiencies.
Experience the ease of procurement with a 30-day free trial. Click here to sign up and optimise your procurement process.
SeamlessProcure is the best procurement software in Nigeria, Ghana, Kenya and is trusted by top business leaders in Africa.
