Procurement software for SMEs (Small and Medium-sized Enterprises) is often an overlooked area. The procuretech space is dominated by solutions geared towards larger enterprises with substantial budgets.
However, a closer look reveals a vibrant market of specialised providers catering specifically to the needs of SMEs. This, despite their quieter presence when it comes to marketing.
The previous version of the SME Tech Map was downloaded by 287 people.
I’m very humbled by that number.
Clearly, there is a demand for this type of diagram.
We’ll keep bringing you updated versions of these maps every 6 months. This is a space that’s changing quickly, and we intend to stay on top of it!
Unveiling the SME Procurement Tech Map
Recently updated, our latest Procurement Tech Map highlights numerous procurement software for SMEs who are dedicated to enhancing and digitising essential procurement processes for smaller businesses.
These companies offer tailored solutions that address unique challenges faced by businesses with small procurement teams. In some cases, “procurement” may just mean they’re reliant on a sole, administrative buyer role in their organisation.
What Are Procurement Tech Maps?
Our Tech Maps offer a concise, one-page overview of the various procurement technology companies segmented by different categories. These maps are designed as a starting point for your research journey, not as a final endorsement or validation of any particular solution.
They serve to help you quickly visualise and understand the array of tools available, allowing you to narrow down your choices.
The information compiled on our Tech Maps is based on years of market research and industry knowledge, meaning it’s reliable and crafted by real experts. This is not AI-generated content. It’s built through hands-on research.
What criteria did we use to include solutions in a Tech Map?
To appear on any of our TechMaps, a provider must meet the following essential criteria:
- Standalone SaaS: The solution must be a standalone Software as a Service (SaaS) product. We don’t list solutions which are bundled with consultancy or training services. A software solution must be stand-alone as a product.
- Beyond MVP: The software must have surpassed the minimum viable product stage and have active paying customers.
- Procurement-Focused: The solution must directly serve the procurement space. Tools primarily aimed at other business functions, such as HR or finance, are generally excluded. The exception is if they have significant crossover, such as contract management or fraud detection tools.
Additionally, we consider solutions from related sectors, such as FinTech products that help manage working capital or invoice consolidation tools, which can benefit procurement professionals.
Procurement Software for SMEs: What do we look for?
Unlike their enterprise-focused counterparts, these solutions are designed with the specific needs of SMEs in mind. Here’s what sets them apart:
1. Fast Implementation
SMEs often require solutions that can be implemented swiftly and seamlessly integrated into existing workflows without extensive downtime. Many of these providers excel in offering rapid deployment options, ensuring minimal disruption to operations.
2. Great UI/UX
User experience is paramount, especially for SMEs. Solutions featured on our map prioritise intuitive interfaces and user-friendly experiences, making adoption and daily use straightforward for procurement teams.
3. Affordable Pricing
Cost-effectiveness is a cornerstone for SMEs. Recognising this, the solutions listed typically offer pricing models that are transparent and affordable, often structured to fit within budget constraints without compromising on functionality.
4. Low Complexity and Less Customisation
SMEs benefit from solutions that strike a balance between out-of-the-box functionality and customization options. These solutions minimise complexity, focusing on essential features that can be easily tailored to meet specific business needs.
5. Ease of Use
From procurement managers to CFOs, ease of use is crucial. The solutions highlighted emphasize usability, ensuring that functionalities are accessible and comprehensible without extensive training or IT support.
The short summary
The simple answer here is that this Tech Map is not meant to be detailed, academic level research.
If it was, then clearly we would have to hire research analysts and charge for this. That’s not our philosophy. We want to democratise access to procurement tech for those who don’t have a budget.
We do not specifically endorse any software solutions in this Map.
It’s not our intention to make this a “best of” or “top 50 or 100 list”. We’ll leave that to others out there who’ve been doing this for years. Without knowing what each individual reader is seeking specifically from any procurement software provider, I do question how useful this approach is.
Pricing: What do these solutions typically cost?
Procurement software for SMEs has to be price competitive.
It’s not always possible to have complete transparency over what a software company charges their customers. However, it’s certainly a lot more transparent in this segment of the market. This is likely down to a couple of factors:
- Necessity: The lower end of the market is way more price sensitive. Prospective customers demand more price transparency.
- Less Customisation: Enterprise software, generally speaking, is way more customisable. Every large customer has very complex operations. For SMEs, there is less complexity. Less complexity makes it easier for software companies to offer transparent and fixed pricing.
The solutions on the SME Tech Map will typically come in below $25,000 per year. Many of them also offer licence-based pricing. Our Software Finder App will show you if pricing is licence-based or enterprise-based
This is perfect for smaller organisations with fewer users.
What should you consider when buying procurement software?
When selecting procurement tech, consider factors beyond cost alone. I know this will always be a driving factor, but you need to look beyond just the price.
Evaluate how each solution aligns with your business’s operational needs, scalability requirements, and potential for seamless integration with existing systems. Look for providers who not only offer competitive pricing but also prioritise customer support and ongoing innovation.
Are you still confused? The market is constantly evolving and becoming more complex as these categories mature and grow.
It’s becoming increasingly difficult to pigeon hole different procurement software applications into a single box. Many solutions offer modules and functionality beyond just the primary category we’ve listed them under.
Introducing our RFI-as-a-Service
This is perhaps why you could benefit from our expertise. We offer a customised RFI-as-a-Service, catered to your individual requirements and criteria.
How does it work?
- You tell us what you want the software to do.
- We give you some initial feedback around whether that’s possible in one solution.
- We refine the scope of work with you, to understand your must-haves vs. nice-to-haves.
- Once you give us the green light, we go out and scan the market for those solutions that match your requirements.
- We give you the shortlist of the most relevant solutions, and perform a deep dive (demos, sales meetings, Q&A) on each of these.
- We then provide the relative strengths and weaknesses of these applications in a report, along with the suggested next steps.
All of this can be provided for a fixed cost. No time-and-materials billable hours.
Once the scope is clear, we’ll deliver an RFI-as-a-Service at a fixed cost. Typically, this costs between $4,000 to $5,000.
Time is money. We will get you to the point of choosing a provider 2-3 months faster.
No Googling, no wasting your time talking to salespeople from software providers who don’t meet your requirements.
Every week saved in sourcing and selecting a provider is a week you’re delivering value to your stakeholders and organisation through digitising your key procurement processes and activities.
Let us take you to your destination faster and more efficiently!
