P2P software and its alternatives:
automate procurement lifecycle

Is your business struggling with manual procurement that slows down purchasing and leave room for errors? Let’s see if P2P tools can solve your problem.

As companies scale, managing procurement manually can lead to delays, inefficiencies, and compliance risks. 

Procure-to-pay (P2P) software, intake-to-pay, and intake-to-procure (I2P) tools help standardize and automate different parts of the procurement process, reducing manual tasks and improving visibility.

P2P software automates the entire process—from the initial purchase requisition to payments—ensuring no step is missed. 

In contrast, Intake-to-Procure software focuses on the intake and approval of purchase requests but doesn’t cover payments. 

Additionally, Intake-to-Pay goes one step further, offering a complete solution by automating both the intake and approval process, as well as the payment process, creating a fully integrated procurement workflow from request to payment.

This article will dive into the differences between these solutions. We’ll highlight the pain points each solves, and explain how automation can transform procurement workflows. 

We’ll also discuss how businesses can streamline their procurement process using tools like Spendbase’s SaaS management platform.

Procurement process and its stages

In any organization, the procurement process involves a series of structured steps that ensure every purchase aligns with the company’s needs and financial goals. 

Whether you’re procuring a new SaaS tool or negotiating a renewal for an existing service, this process must be streamlined and standardized. 

Below is a breakdown of the key stages involved in the procurement process, which every IT director, procurement manager, or CFO will find essential to manage effectively.

Challenges of software procurement

Software procurement, especially in organizations with growing SaaS usage, presents several challenges that can harm efficiency and productivity. As companies aim to streamline their procurement process, they often encounter key pain points that slow down decision-making.

1. Lack of standardization

Without a standardized procurement process, different departments or employees follow their own methods to procure SaaS solutions, leading to inconsistencies and inefficiencies. 

This lack of standardization can result in duplicate purchases, unmanaged vendor contracts, and compliance issues. A centralized and automated procurement system ensures a uniform approach to procurement across the organization.

2. Manual approval processes

One of the most time-consuming aspects of procurement is the manual approval process. 

Teams must coordinate via emails and spreadsheets, creating excessive back-and-forth communication that delays purchases. Manual processes also increase the risk of errors during purchase order creation or supplier vetting. 

This is where p2p software proves essential, as it automates the approval workflows, speeding up decisions and reducing human errors.

3. Vendor management complexity

Managing multiple vendors can become overwhelming as different contracts have varying terms, renewal dates, and pricing structures. 

Without a unified procurement process, it becomes challenging to keep track of all vendor agreements, leading to missed renewals or unmanaged costs. 

A procure-to-pay solution simplifies supplier management by offering real-time visibility into each supplier’s contract, making it easier to handle renewals and monitor performance.

4. Lack of Visibility

Another significant challenge is the lack of visibility into software purchases and usage across the organization. When procurement is decentralized, IT and finance teams often struggle to track spending or ensure that purchases comply with internal policies. 

Shadow IT can also become a problem, where employees purchase unauthorized SaaS tools. 

Once companies implement the procure-to-pay system and introduce subscription management for SaaS tools, they can improve visibility and ensure compliance, gaining insights into every purchase requisition, purchase order, and invoice.

Incorporating P2P automation tools into your procurement workflow helps to address these challenges by automating tedious processes, improving compliance, and increasing real-time oversight into purchases. 

Standardizing the approval workflow and automating communication with vendors guarantees the procurement process remains efficient, transparent, and aligned with the company’s goals.

Procure-to-pay software and its role

The P2P software plays a critical role in automating and streamlining the entire procurement cycle, from the initial request for a purchase to the final payment of an invoice. 

P2P tools help companies to save time, reduce manual errors, and gain better control over their financial activities. 

Here’s a closer look at what parts of the procurement process P2P covers, the benefits it provides, and how it differs from alternative solutions like Intake-to-Procure and Intake-to-Pay.

What part of the procurement process does P2P software cover?

P2P software automates the downstream activities of procurement, which include several steps.

What pains does P2P software solve for IT teams?

P2P software helps IT teams overcome key challenges, including:

Manual processes. Traditional procurement processes involve many manual steps, like emailing approvals and creating purchase orders. P2P software automates these, reducing errors and speeding up workflows.

Lack of compliance and visibility. Without automated tools, unauthorized purchases can slip through, and compliance with procurement policies is hard to enforce. P2P systems offer full visibility and ensure compliance by tracking every step.

Delayed payments. Invoice approval delays can harm supplier relationships. P2P automates this process, ensuring timely payments and improving supplier satisfaction.

Supplier relationship management. Managing multiple vendors and contracts can be a headache without centralized tracking. P2P systems simplify vendor management, giving IT teams a real-time view of all ongoing contracts and renewals.

Examples of P2P software solutions

Coupa (for Enterprises). Coupa is one of the most robust procure-to-pay (P2P) platforms designed for large enterprises. 

It stands out for its comprehensive automation features, helping businesses manage everything from procurement to invoicing with ease. With real-time visibility into spend management, Coupa offers a single platform to track and optimize all procurement activities.

• Spend optimization: Coupa provides real-time insights into company-wide spend, helping businesses reduce costs and improve procurement efficiency. Its spend analysis feature aggregates data, offering actionable insights to optimize purchasing decisions.
• Supplier management: The platform includes supplier collaboration tools, enabling companies to connect with vendors, negotiate terms, and manage supplier performance, which is especially valuable for enterprises dealing with a global supplier base.
• Integrations: Coupa integrates seamlessly with major ERP systems, such as SAP and Oracle, ensuring that procurement activities align with broader business operations. This integration allows for seamless data transfer, which improves overall operational efficiency.
• Sustainability features: Coupa’s Sustainable Business Spend Management (BSM) feature allows businesses to track their spending and measure the environmental and social impact of their procurement choices. This is a significant differentiator for enterprises prioritizing ESG (Environmental, Social, Governance) initiatives.

Coupa is highly suited for large organizations that require a solution capable of handling high volumes of procurement activity while providing advanced insights for strategic decision-making.

Why enterprises choose Coupa:

• Advanced spend management tools and real-time tracking.
• Extensive supplier management features.
• Strong integration with ERP systems for seamless operations.
• Focus on sustainability and responsible procurement.

SAP Ariba (for Enterprises). SAP Ariba is another leading procurement solution designed to meet the needs of large-scale enterprises. It is widely recognized for its ability to handle end-to-end procurement processes, with strong features in supplier management, contract lifecycle management, and strategic sourcing.

• Supplier collaboration and management. SAP Ariba’s supplier management capabilities allow companies to onboard, evaluate, and collaborate with suppliers on a global scale. The platform centralizes supplier data, making it easier for enterprises to track performance and manage relationships.
• Contract management. With SAP Ariba, enterprises can automate contract management workflows, ensuring that all procurement agreements are properly negotiated, approved, and stored. The contract repository allows users to track and manage all contractual obligations.
• P2P automation. SAP Ariba provides full procure-to-pay automation, from requisition creation to payment. It integrates with ERP systems like SAP S/4HANA, ensuring that procurement activities are closely aligned with broader financial management.
• Compliance and risk management. One of SAP Ariba’s strengths is its emphasis on compliance and risk management. The platform helps enterprises ensure that they are meeting regulatory requirements and that supplier risks are minimized through ongoing monitoring and assessment.

Why enterprises choose SAP Ariba:

• Comprehensive contract and supplier management.
• End-to-end procurement automation.
• ERP integration for smooth data flow.
• Strong risk management and compliance features.

Spendbase (for SMBs). Spendbase is an ideal procurement tool for small to mid-sized businesses (SMBs) that want to automate their intake and purchase approval workflows. 

Its user-friendly interface simplifies the procurement process, allowing businesses to efficiently manage requests, approvals, and supplier relationships without the complexity typically found in enterprise systems.

• SaaS procurement automation. Spendbase automates SaaS procurement from request intake to renewals, ensuring that SMBs can manage their software spend more efficiently. The platform offers an intuitive workflow that reduces manual approvals and speeds up the procurement process, making it a powerful tool for smaller teams with limited procurement resources.
• SaaS pricing reviews. With Spendbase’s SaaS pricing reviews, businesses can compare software solutions based on cost and features. This feature enables procurement managers to make informed decisions, helping them choose the right tools to meet their business needs without overspending. By offering pricing insights, Spendbase ensures that businesses can optimize their software purchasing strategy.
• Renewal management. One key advantage of Spendbase for SMBs is its ability to track contract renewals. The platform sends notifications about upcoming renewals, allowing companies to renegotiate terms or cancel subscriptions based on usage data. This prevents costly auto-renewals and helps businesses better manage their SaaS budget.

Why SMBs choose Spendbase:

• Flexible linear and conditional approval workflows.
• Integration with Slack for employee comfort.
• Simple renewal management to avoid unnecessary expenses.
• An intuitive and easy-to-use platform that doesn’t require extensive training.

Precoro (for SMBs). is another popular P2P solution tailored to the needs of SMBs. It simplifies purchase order management, budget tracking, and supplier communication, making it a versatile tool for businesses looking to streamline their procurement processes without complex implementations.

• Purchase order management. Precoro automates the entire purchase order process, from creating and approving purchase requests to receiving goods and matching invoices. This helps SMBs reduce errors and ensure that their procurement operations run smoothly.
• Budget tracking and reporting. With built-in budget tracking, Precoro allows businesses to monitor their spending in real time. This feature helps SMBs stay within budget and provides visibility into where funds are being allocated, ensuring financial control.
• Supplier communication. Precoro also improves communication with suppliers by providing a central hub for managing vendor relationships, orders, and payments. This makes it easy for SMBs to maintain clear, organized communication with their suppliers, reducing delays and miscommunications.

Why SMBs choose Precoro:

• Comprehensive purchase order automation to reduce manual work.
• Real-time budget tracking to keep procurement costs under control.
• Centralized supplier communication to improve vendor relationships.
• Easy-to-use interface that fits SMBs with limited procurement resources.

Procure-to-Pay Software Alternatives: Intake-to-Procure vs. Intake-to-Pay

Intake-to-Procure Software

Intake-to-Procure (I2P) focuses on the upstream activities of procurement—capturing and managing procurement requests from employees and gaining internal approvals before purchase orders are created. 

It provides a centralized interface where all purchase requests are processed, validated, and approved in collaboration with procurement, finance, and IT teams.

What pains does it solve?

• Reduces unmanaged spending by capturing all purchase requests in one system.
• Improves employee engagement by simplifying the request process.
• Ensures compliance by guiding employees through the necessary approvals.

Pros:

• Streamlines the approval process, reducing bottlenecks.
• Integrates with existing systems, such as P2P and ERP solutions.
• Improves compliance and visibility into procurement activities.

Cons:

• Does not handle downstream activities like payment processing or invoice matching.
• Limited scope in managing vendor relationships.

Intake-to-Pay Software

Intake-to-Pay (I2P) combines both upstream and downstream activities in procurement. It covers the entire cycle, from capturing procurement requests to creating purchase orders, managing invoices, and processing payments.

What pains does it solve?

• Automates the entire procurement process, from request to payment, providing a single platform for all procurement activities.
• Enhances visibility into the full procurement lifecycle, reducing manual work and ensuring timely renewals and payments.
• Supports compliance and real-time spend tracking.

Pros:

• End-to-end procurement automation.
• Greater control over the entire procurement cycle, improving operational efficiency.
• Better supplier management and renewal tracking.

Cons:

• Implementation can be complex, especially for larger organizations with existing systems.
• Requires more extensive training and change management to integrate with current workflows.