Procurement challenges begin with a request: solve them before they snowball

Rush creates chaos everywhere. The rush to adopt SaaS creates chaos in procurement. The result? Uncontrolled buying and wasted resources.

The SaaS procurement issues are intricate and layered. While the overall journey from identifying a need to making the purchase is complex, let’s shine some light on the initial phase: intake-to-procure.

The procurement process starts with an employee’s request. And this intake-to-procure stage is often the most neglected and chaotic part of the whole operation. 

If you’re looking for a fix, this is where you can dive into common procurement challenges—and find the solutions that work.

Uncontrolled buying of SaaS

One of the biggest challenges in procurement is the unchecked buying of SaaS, also known as “shadow IT.” This happens when employees skip the usual procurement process and buy software on their own—without getting the necessary approvals. 

According to Cisco, 80% of end users use software not cleared by IT. These purchases might seem like a quick fix for business needs, but they can have negative effects on the company in the long run.

When employees make software purchases outside of official channels, companies lose track of what applications are being used. This can result in a mix of tools that don’t work well together, making workflows more complicated and less efficient. 

Additionally, using unapproved tools can create security risks. 

Employees might choose software that doesn’t meet the company’s security rules, which can put sensitive information at risk. IT departments may have a hard time keeping everything secure if they don’t know what software is being used. 

For example, someone might subscribe to a software solution to address a short-term need, but if they don’t get proper approval, they could end up choosing a vendor that doesn’t meet the company’s security standards, putting sensitive customer data at risk.

Spendbase offers a procurement platform that helps create centralized visibility into SaaS usage, enabling organizations to monitor purchases, assess software alignment with business needs, and streamline vendor management.

Violation of approval hierarchy

Skipping the approval hierarchy is one of the common challenges of procurement. There should be clear steps for evaluating and approving software purchases to ensure they fit business goals and budgets. But when employees skip these processes, it can lead to wasted money, compliance headaches, and a messy organization.

For example, if employees make purchases without getting the proper approval, it can cause budget overruns. If several departments buy similar subscriptions without checking in with finance, the company could end up spending way more than it needs to. This disconnect can create tension between departments and affect the overall financial health of the business.

Skipping the approval process can also lead to poor-quality software that doesn’t meet the company’s needs. Different departments might pick their tools, which can create inconsistencies in quality and functionality. This makes it harder for teams to work together and integrate their tools smoothly.

Without proper oversight, employees might also select tools that don’t fit their needs or lack important features, leading to frustration and wasted time as they try to make those tools work.

Plus, not following procurement processes can mess up vendor management. Companies might struggle to build good relationships with vendors or negotiate better deals, missing out on potential cost savings and support.

As one of the top 10 procurement tools for SMBs, Spendbase standardizes approval workflows ensuring that all purchases are vetted by the appropriate stakeholders, reducing the risk of unauthorized spending.

The approval process lasts too long

The length of the approval process can create challenges in procurement that affect your employees’ morale and productivity. 

When employees have to wait a long time for software approval, it can lead to frustration. Teams might feel their needs are not being prioritized, which can result in disengagement and decreased productivity. 

Lengthy approval processes can also cause missed opportunities, as teams may not be able to act quickly enough to secure important tools. 

For example, a marketing team may discover a new software solution that could improve their campaigns, but if the approval takes too long, they might get delayed with a campaign launch. 

Spendbase helps reduce bottlenecks and speeds up the decision-making process. With features that allow for quick evaluations and approvals, teams can get the tools they need without unnecessary delays.

Duplicate requests for the same SaaS

Keeping track of duplicate requests for SaaS can be a real hassle for IT teams. 

When team members submit requests through different channels or various departmental systems—it’s easy for someone to accidentally ask for the same software. This not only creates confusion but also wastes time and money.

If there’s no central system, employees often don’t know if someone else has already made a request. So, IT ends up spending too much time sorting through various channels to find and manage requests. This slows down the whole procurement process and takes time away from more important tasks.

Using  Spendbase, IT teams can see all requests as they come in, allowing them to manage priorities better and respond to needs faster. 

By keeping all requests in one place, Spendbase helps companies avoid unnecessary spending and makes better use of their budget. It also helps improve communication between employees and the IT team.

Conversations in different chats

SaaS procurement can get a bit messy when conversations are all over the place. Team members might chat about software needs in email threads, Slack messages, or even next to a water cooler, so it’s easy for important information to get lost in the shuffle.

Plus, if teams aren’t using the same platform, they might miss important updates about software requests. For example, a person responsible for an approval might miss notifications, which will cause delays.

Effective collaboration needs everyone to be on the same page, but when conversations are spread out, it makes teamwork challenging. Without a central place to discuss software needs, it’s tough for departments to align their goals and work together smoothly.

To avoid all the back-and-forth chaos, use a central hub for communication and requests. 

Regular check-ins between teams can help too. Setting up some casual meetings to discuss upcoming software needs ensures everyone is on the same page and aligned on priorities. 

Plus, having a notification system to alert teams when a new request comes in can keep everyone in the loop.

With Spendbase, there’s a clear way for everyone to submit requests. 

Employees can quickly fill out a form that gets logged and tracked, making it simple for everyone. You can solve the problem of duplicate requests, simplify your procurement process, and create a smoother experience for everyone.

Wasting money on unnecessary SaaS

Without knowing what software they already have, businesses might buy tools that do the same thing or end up not using them at all. This can lead to buying several subscriptions for similar software without realizing they already have access to similar tools. 

At the same time, software vendors often sell extra features that may not be needed. This can cause businesses to pay for features they never use, increasing costs.

When companies grow quickly, they might buy software without checking what they actually need. As teams change, their software needs can change too, but if businesses don’t regularly review their tools, they might keep paying for software that’s no longer needed.

Spendbase for Procurement simplifies how businesses manage software subscriptions. Companies can set up approval processes with linear or conditional workflows, making sure every request follows the smoothest trajectory from submission to completion.

Automatic notifications keep both approvers and requesters updated in real time. No steps are missed, deadlines are met, and everyone stays in the loop. ​​

As companies grow, Spendbase helps them reassess their software needs, avoiding payments for tools that are no longer required.

Tension between colleagues

The challenges in the procurement process can sometimes breed tension between colleagues, particularly when there is a lack of transparency and communication.

Different departments often have their own software needs. For instance, the marketing team might want a shiny new analytics tool to boost their campaigns, while the sales team is eager for a new CRM. When these needs collide, it can lead to some tension as each team pushes for what they want without considering the bigger picture.

Miscommunication is another common issue. If one team assumes that another knows about their software tools and needs, they might not communicate effectively. This can lead to duplicate requests or make it seem like one department is hogging resources, which can be pretty frustrating.

Tight budgets can add fuel to the fire, too. When money is limited, departments often find themselves competing for funds. If one team feels their needs are being overlooked in favor of another, it can lead to some hard feelings and make collaboration tougher.

And let’s not forget about resistance to change. When new software comes in, not everyone is always on board. If some team members are excited about a new tool while others are hesitant, it can create divisions and make it harder for everyone to work together.

For example, if the finance team decides to cut funding for a project management tool used by several departments to invest in a new ERP system, the teams that relied on the old tool might feel overlooked. This can lead to tension that hurts relationships between departments.

Spendbase is one of the most efficient tools in the field of procure-to-pay software and alternatives. It can help your team with procurement problems and solutions. The platform provides clarity on procurement processes and establishes channels for communication.