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Procurement has evolved beyond administrative tasks.

Today, it has a key role in optimizing costs, ensuring compliance, and improving supply chain resilience.

Achieving these goals is much easier with the right digital technology, and procurement platforms are one of the most important tools for the job.

Today, we’ll explore what procurement platforms are, their core benefits, and how to implement them effectively.

There’s a lot to unpack, so let’s dive in!

What is a Procurement Platform?

A procurement platform is a digital system that streamlines purchasing processes for businesses.

Typically, businesses use it to streamline B2B and business-to-government transactions.

Some of its core features include:

• Purchase requisition and order management
• Vendor and supplier management
• Contract management

Many platforms also offer automated workflows, integration with existing systems, and advanced analytics to enhance procurement efficiency.

Types of Procurement Platforms

Choosing the right procurement platform starts with knowing what your options are.

One of the biggest decisions you’ll make is how the platform is deployed.

There are three main models, each with its own advantages and trade-offs:

Source: Veridion

Cloud-based procurement platforms are hosted on vendors’ servers and accessed via the Internet.

This eliminates the need for large infrastructure investments, making them a cost-effective and scalable option.

With just an internet connection, businesses can streamline procurement processes, automate workflows, and access data from anywhere.

However, storing sensitive procurement data on third-party servers is riskier than storing it on your own infrastructure.

That’s why it’s crucial to choose reputable vendors with strong security measures and positive reviews.

Despite these concerns, cloud-based solutions remain the top choice for many organizations due to their easy setup, affordability, and flexibility.

Source: Veridion

On-premise procurement solutions are installed and operated on your company’s own servers, giving you full control over your technology and data.

This makes them a more privacy-friendly option compared to cloud-based platforms.

On-premise platforms are also typically more customizable and come with one-time licensing costs.

Cloud-based platforms, on the other hand, usually involve recurring subscription fees.

However, this control comes at a cost—on-premise solutions require a larger upfront investment and ongoing maintenance to keep the system updated and secure.

For this reason, on-premise platforms are better suited for large enterprises with the resources to manage their own IT infrastructure, rather than smaller businesses looking for a cost-effective solution.

Source: Veridion

Finally, hybrid procurement platforms combine elements of both cloud-based and on-premise solutions.

They allow companies to maintain sensitive procurement functions on-premise while leveraging cloud capabilities for other aspects.

However, they’re more complex to manage and can lead to duplication of efforts and resources.

Source: Veridion

After choosing your deployment model, there’s another key decision to make:

Do you need a procurement platform designed specifically for your industry, or is a more general-purpose solution enough?

Each option has its pros and cons.

Industry-specific (vertical) solutions come with built-in compliance tools, industry-relevant features, and tailored workflows, making them a great fit for specialized sectors.

However, they often come with higher costs and a greater risk of vendor lock-in, making it harder to switch providers later.

General-purpose (horizontal) solutions, on the other hand, offer greater flexibility and lower costs, but may lack certain industry-specific features out of the box.

But many can be customized to fit your needs, making them a viable alternative to vertical solutions that come with pre-built industry features.

However, if you do want to implement customizations, you should count on spending some time and investing an adequate level of internal technical skills into doing so.

Also, available customization options with generalistic solutions can be somewhat limited.

So, should you go with horizontal or vertical platforms?

There’s no one-size-fits-all answer. It all depends on your needs.

That’s why businesses remain split between the two, and why vertical and horizontal SaaS solutions are growing at nearly the same rate.

Illustration: Veridion / Data: SaaS Capital

It’s important to carefully evaluate your business needs before committing, as switching platforms later can be costly and disruptive.

Key Benefits of Using a Procurement Platform

Now that you know what a procurement platform is, and the types, let’s look at the main benefits of using procurement platforms.

Improves Supplier Selection

For starters, a robust procurement platform improves supplier selection.

Picking the right supplier isn’t just about finding the lowest price, at least not anymore.

According to PwC’s Digital Procurement Survey, supplier sourcing has evolved from a tactical to a strategic function, with 35% of procurement departments treating it as a top strategic priority.

Illustration: Veridion / Data: PwC

That means procurement teams must consider more than just cost—delivery times, past performance, and risk factors all play a role.

However, this presents procurement with a new challenge: supplier sourcing is becoming increasingly complex.

Besides the fact that you now need to collect and compare additional data points, the average number of suppliers per company increases every single year.

The 2025 Indirect Procurement Report shows that small businesses now work with 92 suppliers on average, medium businesses handle 100 suppliers, and larger enterprises manage 120 suppliers or more.

Illustration: Veridion / Data: RS & CIPS

With this in mind, most companies nowadays can’t afford to operate without procurement platforms.

So, what do procurement platforms do that’s so helpful?

Well, for one, they automate data collection, validation, and analysis processes that typically take days, if not weeks to complete.

On top of that, many come with features like supplier rating systems that help teams evaluate and compare suppliers based on key metrics like financial stability, ESG performance, and compliance history.

This is where Veridion stands out.

With a global database covering more than 120 million suppliers and over 200 million products and services, the platform offers procurement teams a robust collection of supplier data points.

Source: Veridion

The data points include:

• Firmographic information
• Compliance information
• Financial stability
• Geopolitical risks
• ESG data
• And more

The data is updated at least once a week, ensuring you have access to the most up-to-date, accurate information and can compare suppliers with ease.

Now, think about how long it takes your procurement team to gather all of this data manually for each supplier.

Too long, right?

In fact, check out the visual below to see how procurement platforms dramatically speed up supplier selection while delivering better results.

Source: Veridion

The bottom line is this: manually selecting suppliers is just no longer realistic.

Procurement platforms take the heavy lifting off your plate and help you make informed decisions faster (and with a lot less hassle).

Provides Insights Into Key Data

Procurement platforms gather and analyze large amounts of data related to supplier performance, inventory levels, and purchasing trends.

These insights allow businesses to achieve many key goals, like forecasting demand, planning purchases more accurately, and managing supplier relationships more effectively.

Many chief procurement officers (CPOs) already recognize these benefits.

The Hackett Group study from 2022 shows that 84% of CPOs think digital transformation will improve procurement performance and service delivery over the next 3-5 years.

Illustration: Veridion / Data: The Hackett Group

Advanced data analytics and reporting tools are at the core of this transformation, turning raw procurement data into actionable insights.

Beyond strategic planning, procurement platforms also expose inefficiencies within existing workflows.

Are there frequent mismatches between purchase orders and invoices? Are approval delays slowing down procurement cycles?

Automated reports can pinpoint bottlenecks and highlight areas for improvement, ensuring smoother operations.

And the value of these insights goes beyond just efficiency.

According to Jason Busch, Managing Director of Spend Matters, the return on investment (ROI) from data-driven procurement far outweighs the cost of the software that enables it.

Illustration: Veridion / Quote: Vroozi

More businesses are recognizing the power of analytics not just to cut costs but to refine their procurement strategies and align them with long-term business goals.

By leveraging a procurement platform, companies can make more informed decisions, reduce risks, and ensure that every procurement choice is backed by accurate, real-time data.

Enables Better Cost Control

The best procurement teams can help companies reduce the purchasing cost base by 8%-12%, and save an additional 2%-3% annually, according to Bain research.

What sets them apart?

Their ability to leverage data, analysis, and insights to optimize spending—something that average or below-average teams struggle with.

To achieve this, however, they need an easy way to collect and analyze data and insights in the first place.

And a centralized system, like a procurement platform, is essential for this.

In fact, according to KPMG’s FUTUREBUY report, controlling and optimizing procurement analytics through centralized technology is at the top of the CPO’s agenda for 2025.

Illustration: Veridion / Data: KPMG

By offering real-time visibility into pricing, inventory, supplier offers, and spending all in one place, procurement platforms can help businesses cut costs in many different ways, such as:

• Eliminating wasteful spending
• Making more cost-effective purchasing decisions
• Automatically applying preferred pricing or discounts
• Identifying opportunities for bulk purchasing more easily

Beyond these fundamental benefits, many platforms also include AI-powered tools designed to uncover additional savings.

For example, Chicago Public Schools (CPS) saved $1.7 million by using an AI-driven procurement assistant that identified and suggested cost-saving opportunities.

The bottom line?

A procurement platform doesn’t just help track spending—it actively reduces costs by ensuring every purchasing decision is backed by accurate, real-time data and advanced analytics.

How to Implement a Procurement Platform

Implementing a procurement platform isn’t just about choosing a tool—it’s about aligning it with your specific business needs to maximize efficiency and value.

To do this successfully, follow these key steps.

1. Assess Your Current Procurement Process

Before selecting a platform, take a close look at how your procurement function currently operates.

Identify inefficiencies, pain points, and opportunities for improvement.

Ask yourself:

• What types of goods and services do we purchase most frequently?
• What data or reports do we need to make better decisions?
• Are there suppliers we must integrate with?
• Are we manually entering data anywhere in the process?
• If so, how often do errors occur?
• How easily can we track supplier performance over time?

The goal is to clearly define your needs so you can choose a platform that actually solves your biggest challenges.

For some of Veridion’s customers, for example, the main challenge was finding ethical suppliers and ensuring compliance with evolving regulations.

For others, it was the usual one: data quality and accuracy issues.

2. Choose a Scalable Solution

A procurement platform should support your needs now and in the future.

Consider:

• How many users can be supported under your desired pricing tier?
• What features are included at each pricing level?
• Will you need additional modules or upgrades later?

Answer these questions ahead of time.

Source: Veridion

Selecting a solution with scalability in mind ensures you won’t outgrow it too quickly or end up paying for unnecessary features.

3. Plan for Seamless Integration

To ensure that a procurement platform actually helps you work less instead of adding new tasks to your plate, it’s important to integrate it with your existing tools, such as ERP systems, accounting software, and supplier databases.

Plan for this ahead of time so you can deploy integrations smoothly and with minimal disruption.

To achieve this, you may want to go with a phased implementation approach.

For example, Hellenic Bank first rolled out a source-to-contract module and only expanded to procure-to-pay functionalities after confirming success with the first phase.

Source: GEP

This method ensures smoother adoption and reduces operational risks.

4. Train Your Team & Monitor Performance

Before you start regularly using the new platform, provide adequate training to employees and other relevant stakeholders.

Without training, you can’t count on employees effectively using it or embracing it.

If anything, a lack of training will only increase employee resistance.

Also, providing support shouldn’t stop after you implement the platform.

Your employees will likely need continuous support, so make sure to provide it, whether in the format of internal documents or by offering 1-on-1 help.

After the platform is implemented, continuously monitor performance, collect feedback, and improve the system.

That’s the only way to know if the platform actually works and, if so, how well.

Conclusion

A well-chosen procurement platform does much more than simplify purchasing.

It boosts efficiency, strengthens supplier management, and provides data-driven insights for smarter decisions.

Whether you’re looking for cost savings, compliance, or long-term scalability, the right platform will give you the tools to achieve it.

But success starts with a thoughtful approach.

Take the time to assess your needs, involve key stakeholders, and choose a solution that truly aligns with your business goals.

The right decision today will set you up for smarter, more efficient procurement in the future.