How to choose procurement software in 2025: Feature evaluation guide

At a glance

Procurement software has evolved from simple spend control to enabling compliance, collaboration, and visibility.

Modern platforms must manage external stakeholders, integrate across systems, and deliver real-time insights.

Key evaluation factors include approvals, vendor collaboration, AI, and reporting capabilities.

Moxo complements ERP and eProcurement tools with external workflow orchestration, AI agents, and secure vendor portals.

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Why current procurement software isn't delivering value

Procurement teams are under pressure to do more with less.

According to McKinsey, companies that digitize procurement can reduce costs by up to 20% while significantly accelerating cycle times. Yet many organizations still struggle because traditional systems were built for internal spend tracking, not for orchestrating the external workflows that drive business outcomes.

If you are exploring procurement software today, the real question isn’t just which vendor to pick – it’s what category you’re actually buying into, and whether it will align with how your teams and suppliers truly operate.

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When internal systems break down externally

Procurement processes often break down when software doesn’t reflect the realities of working with external stakeholders. Internal-only systems create bottlenecks: approvals that stall, vendors lost in email chains, and compliance risks from unsecured document sharing.

The risks include:

• Extended cycle times that frustrate stakeholders.
• Heightened exposure to audit and compliance failures.
• Hidden inefficiencies that quietly inflate costs.

Industry frameworks, like Gartner’s procurement maturity model, show that organizations evolve from transactional management toward orchestration and value creation. That shift demands software that integrates with ERP systems while extending to external vendors, consultants, and partners.

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Consider whether you’re buying a module or an orchestration layer

Not all procurement tools solve the same challenge. Some extend ERP modules. Others provide point solutions for sourcing or contract management. What’s often missing is a flexible orchestration layer: software that connects internal approvals, vendor collaboration, and compliance in one flow.

This is where Moxo comes in. Instead of replacing ERP or eProcurement systems, Moxo complements them. It acts as a secure, external-facing workflow platform that bridges the gap between rigid internal systems and the real-world complexity of vendor interactions.

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Evaluation criteria: 5 must-haves for modern procurement software

1. Dynamic approvals and governance enforcement

Approvals are the backbone of procurement governance. The right tool should support workflows based on thresholds, departments, or deal size. In Moxo, the Flow Builder allows leaders to design these approvals dynamically, with controls that adapt to policy.

A customer review notes: “We cut approval times in half with configurable workflows, and compliance is stronger than before.”

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2. Seamless, secure vendor collaboration

Procurement isn’t done in isolation. Vendors must securely submit documents, clarify requirements, and track progress. Traditional systems push them into email, which creates confusion.

Moxo enables this with Magic Links and branded portals. For example, a logistics company shifted from scattered Dropbox folders to Moxo’s vendor portal. The result: fewer errors, clearer communication, and faster turnaround.

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3. True system integration (beyond basic data sharing)

Procurement teams don’t want another silo. They need software that complements ERP systems.

Moxo integrates with ERP environments while adding eSignature and ID verification. This ensures that your SAP or Oracle system remains the system of record, but procurement cycles become smoother.

See how Moxo’s integrations extend value.

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4. Non-negotiable security and compliance auditing

Security is non-negotiable. Procurement software must enforce identity management and provide audit logs. Moxo supports SSO/SAML for enterprise-grade access control, and every action is logged in detail.

For regulated industries like accounting or healthcare, this level of compliance is critical.

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5. Actionable reporting on cycle times and bottlenecks

Reporting goes beyond spend. It should uncover bottlenecks, monitor supplier performance, and support compliance reviews.

With Moxo’s dashboards, leaders gain visibility into approval cycle times and vendor performance, making it easier to negotiate and improve supplier relationships.

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Decision matrix: Comparing vendors across key criteria

When evaluating procurement software, decision-makers should measure vendors across six criteria:

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Analyst research from Deloitte confirms these factors are central to procurement transformation.

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Moxo’s workflow-first approach

The right procurement software should do more than manage purchases – it should unify workflows, stakeholders, and systems. Moxo offers this through its secure, workflow-first architecture.

With Moxo’s no-code builder, teams can automate every stage of the procurement cycle: requisition, PO approvals, and invoice matching. Workflow automation ensures deadlines are met through alerts and escalation paths.

Integrations with ERPs and eProcurement platforms extend functionality without disruption, while vendor portals improve supplier engagement and transparency.

Procurement leaders gain complete oversight through performance dashboards and ensure compliance with enterprise-grade security and audit trails.

Moxo gives businesses the flexibility of workflow automation and the reliability of an enterprise-ready procurement system, all in one platform.

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From simple spend control to enabling compliance, collaboration, and visibility.

Procurement success in 2025 isn’t about picking the largest ERP module or the flashiest tool. It’s about orchestrating workflows that include external vendors and auditors while maintaining compliance and efficiency.

Moxo complements your existing systems with secure portals, AI agents, and external workflow orchestration. That means faster cycles, fewer risks, and stronger vendor relationships.

Ready to evaluate? Book a demo today and see how Moxo transforms procurement.

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FAQs

What is procurement software?

Procurement software manages sourcing, purchasing, vendor collaboration, and approvals. It ensures compliance, reduces cycle times, and gives leaders visibility into spend.

How does Moxo differ from traditional procurement tools?

Traditional platforms focus internally. Moxo extends procurement to vendors and external stakeholders while integrating with ERP systems, creating an orchestration layer.

What are the must-have features in procurement software?

Approvals, vendor collaboration, integrations, AI, reporting, and compliance controls are all essential. Moxo delivers these with Flow Builder, Magic Links, AI agents, and enterprise-grade security.

How much does procurement software cost?

Pricing varies by vendor and scale. ROI is highest when platforms, like Moxo, streamline external collaboration and reduce cycle times instead of relying solely on rigid ERP modules.

Can Moxo integrate with ERP systems?

Yes. Moxo integrates with ERP and eProcurement systems, allowing businesses to keep core platforms while extending workflows to external partners securely.