Top three procurement automation systems of 2024

A new era of procurement is here, and here to stay - and it’s all about automation. With most procurement teams increasingly working with leaner teams and resources, automation helps drive greater efficiency, cost reduction and compliance with corporate policies and negotiated contracts.

Several procurement systems have distinguished themselves by offering comprehensive, automated solutions that cater to the diverse needs of procurement leaders across industries. Here, we explore the top three automated procurement systems of 2024, highlighting their offerings, the markets they serve and their respective pros and cons.

1 - Coupa procurement automation software

Offering: Coupa provides a unified, cloud-based spend management platform that encompasses procurement, invoicing and expense management. Its platform is designed to offer visibility into and control over how companies spend money. With AI-driven insights and a user-friendly interface, Coupa aims to simplify procurement processes and drive savings.

Markets Served: Coupa serves a broad range of industries, including financial services, healthcare, retail and manufacturing. Its flexible platform is suitable for both SMBs and large enterprises, with a client list that includes renowned global companies such as Nestle and AstraZeneca.

Pros:

• Intuitive interface that simplifies user adoption.
• Extensive integration capabilities with ERP and financial systems, enhancing data flow and process efficiency.
• Strong analytics and AI features that provide actionable insights for cost savings and process improvements.
• A broad suite of tools that cover the entire procure-to-pay (P2P) process, making it a one-stop solution for many organizations.

Cons:

• The breadth of features can be overwhelming for smaller organizations or those with simpler procurement needs.
• Limited customization options compared to other platforms.
• Pricing can be on the higher side, especially for smaller businesses.

2 - SAP Ariba automated procurement

Offering: SAP Ariba offers a comprehensive cloud-based solution for managing procurement and supply chains. It facilitates everything from supplier discovery and sourcing to contract management and payment, all within a single integrated platform. Ariba's network connects millions of suppliers and buyers worldwide, facilitating efficient, collaborative commerce.

Markets Served: SAP Ariba is versatile, serving industries ranging from manufacturing and retail to healthcare and public sector. Its global reach and extensive supplier network make it a preferred choice for multinational corporations such as Walmart and ExxonMobil who are looking to streamline their procurement processes.

Pros:

• Access to a vast global network of suppliers, enhancing sourcing options and competitive pricing.
• Deep integration capabilities with SAP's ERP systems and other business software, providing a seamless flow of procurement data.
• Strong focus on compliance and risk management, with tools to ensure adherence to policies and regulations.

Cons:

• The platform can be complex to implement and requires significant setup time, especially for large, global deployments.
• Cost (up front and ongoing) can be a barrier for smaller organizations or those with limited procurement needs.

3 - Epic^®, DSSI’s automated procurement system

Offering: DSSI stands out as a comprehensive procurement service provider, leveraging its e-procurement platform, Epic®, to deliver a wide range of services from sourcing and purchasing to spend analytics and MRO (Maintenance, Repair, and Operations) spend management. DSSI's solutions are designed to drive substantial savings and lower the total cost of procurement through multi-client group sourcing leverage and efficient order fulfillment processes.

Markets Served: DSSI caters to manufacturers in the EU and North America, focusing on indirect materials and services. Their client base includes notable companies like Doosan and Johnson Controls, which has recognized DSSI for its performance, commitment to values and leadership goals.

Pros:

• Comprehensive service offerings that cover the entire procurement lifecycle of indirect procurement, from sourcing to payment and reporting. 
• Significant ROI through process savings and item savings, driven by their highly automated e-procurement system.
• Strong focus on MRO spend management, offering tailored services to optimize this often complex category.
• Optimises other ERP legacy systems that are in place, including SAP Ariba and Coupa, ensuring smooth data flow and transaction processing. 

Cons:

• Primarily focused on indirect materials and services, which may limit its applicability for organizations seeking direct procurement solutions.
• The platform's extensive features and services might present a learning curve for new users.

How to choose the right procurement automation system

The top procurement automation systems of 2024 offer powerful tools to transform procurement processes, each with its unique strengths and considerations. DSSI, with its comprehensive service model and focus on indirect procurement, presents a compelling option for manufacturers in North America and the EU. 

Coupa and SAP Ariba extend their offerings across industries, providing robust platforms for procurement automation with extensive supplier networks. As procurement leaders evaluate these options, the choice will depend on their specific needs, including the complexity of their procurement processes, industry focus and the scale of their operations.

If you’d like to learn more about how we’ve been transforming procurement for enterprise businesses for over 20 years, and how we could potentially support you, contact the DSSI team.