12 Best Procurement Software in Malaysia 2024

Not implementing procurement software in your system could be fatal. For the past few years, there have been some cases that highlight the negative impact of manual procurement on the Malaysian public sector, including inefficiencies, corruption, and financial losses.

For instance, the Auditor-General’s Report 2022 mentioned massive losses in public projects, including procuring firearms and accessories for the Royal Malaysian Police by the Ministry of Home Affairs.

A recent article from The Star also discussed the urgent need to reform the Malaysian government’s emergency procurement procedures, citing a specific instance where a botched process resulted in RM13.07 million in losses.

These examples suggest that manual procurement processes can lead to significant financial losses in Malaysia. Therefore, the implementation of a standard procurement system is now urgent, not only for businesses but also for the government.

This article is meticulously crafted to provide an in-depth analysis of the best procurement software solutions that are shaping the Malaysian market. The information presented here will guide you toward choosing procurement software that meets your immediate needs and supports your long-term business goals.

Why Malaysian Companies Must Use Procurement Software?

In Malaysia’s fast-paced business landscape, procurement software has become an indispensable tool for companies aiming to maintain a competitive edge. The adoption of such software streamlines the procurement process, allowing for real-time order tracking, efficient inventory management, and cost-effective purchasing decisions.

By leveraging automation, businesses can minimize human error, reduce paperwork, and ensure compliance with industry regulations.

Without procurement software, Malaysian companies risk falling behind in operational efficiency. Manual processes are not only time-consuming but also prone to errors, which can lead to incorrect order quantities, delayed deliveries, and, ultimately, financial losses.

In the absence of a centralized system, tracking expenditures and negotiating better deals becomes a challenge, often resulting in missed opportunities for savings.

Furthermore, swiftly adapting to market changes is crucial in today’s global economy. Companies that do not utilize procurement software may find it difficult to respond quickly to supply chain disruptions or shifts in consumer demand. This lack of agility can hinder a company’s ability to compete locally and internationally.

In summary, procurement software in Malaysia is no longer a luxury but a necessity for businesses. It empowers companies to operate more efficiently, make data-driven decisions, and stay resilient in the face of market volatility.

Those who choose not to embrace this technology may find themselves at a significant disadvantage, struggling to keep pace with more technologically adept competitors.

Best Procurement Software Recommendation for Your Business​

Embarking on the journey to enhance procurement efficiency, this section presents a curated list of the best software solutions for procurement in Malaysia. Each software has been thoroughly evaluated to ensure that it meets the high standards of functionality, user experience, and support that Malaysian businesses deserve.

Here are the details of the thirteen best procurement software in Malaysia that we compiled for you.

1. HashMicro Procurement

HashMicro Procurement is not just software; it’s a comprehensive ecosystem designed to revolutionize procurement processes. With over 1,750 clients and a suite of more than 40 integrated solutions, HashMicro is a beacon of innovation in the procurement software landscape.

Their client list spans various industries, including prominent names such as Abbot, Danone, Bank of China, and many others, showcasing their versatility and reliability.

HashMicro’s commitment to customization and integration is evident in its approach to client needs. They understand that no two businesses are the same, so their software is engineered to be highly adaptable, ensuring a perfect fit into any existing system or workflow. This flexibility is complemented by their ability to integrate with third-party applications, providing a seamless procurement experience that is both efficient and user-friendly.

With HashMicro, businesses can expect a procurement solution that not only meets their current requirements but also scales with their growth, offering a future-proof platform that evolves with the ever-changing business environment. Whether it’s managing complex supply chains or simplifying purchase orders, HashMicro’s procurement software is the smart choice for businesses looking to gain a competitive edge in their operations.

Best features:

• PO, RFQ, and PR management: This module streamlines the creation and conversion of purchase requests into purchase orders and facilitates the sending of quotations to suppliers with just a few clicks.
• PR approval management: Enables the approval or rejection of purchase requests from various business locations, departments, or employees with a single click, minimizing unauthorized purchases.
• Vendor portal: A platform for vendors to share digital catalogs and engage in the tender process to secure the best offers.
• Vendor/supplier rating: Allows for the evaluation of vendors based on product quality, services, lead time, prices, and more, ensuring high standards are maintained.
• Blanket order management: Facilitates the placement of orders according to pre-agreed prices and schedules, automating recurring orders.
• Landed cost calculation: This method calculates the total cost of purchased products, including taxes, shipping costs, insurance, and currency conversion, providing a clear financial picture.

Strengths:

• Full traceability: Offers complete visibility into the procurement process, from warehouse entry to shipment and receipt notifications.
• Controlled procurement cost: Manages procurement activities more efficiently with budgeting and cost center management per department or project.
• Easy backorder management: This feature simplifies the tracking of item delivery and vendor payment, and it is adjustable based on the quantity of goods received.
• On-time payment: Enhances procurement efficiency with automated notifications for unpaid invoices, ensuring vendors are paid promptly.

Weaknesses:

• Variety of features: The number and complexity of features provided within the software might not be suitable for small- to medium-sized companies.

2. SAP Ariba

SAP Ariba provides a cloud-based procurement platform that facilitates both direct and indirect goods procurement, e-commerce, and supplier collaboration. It is designed to integrate seamlessly with the Ariba Network, a vast community of over 4.6 million connected companies.

SAP Ariba simplifies procurement by offering guided buying and spot buy capabilities, along with supplier and catalog enablement.

Best features:

• Global supplier network: Access to a wide network of suppliers for better sourcing options.
• E-sourcing and catalog capabilities: Streamlined sourcing and procurement with robust catalog management.
• Automated invoice management: Efficient handling of invoices to reduce manual workload.
• Spend visibility and analytics: Detailed insights into spending for better financial control.

Strengths:

• Extensive network: Users benefit from the large global network for sourcing and procurement.
• Automation: The automation of procurement tasks reduces manual errors and saves time.
• Integration: SAP Ariba’s integration with other ERP systems is seamless.
  User experience: The platform is praised for its user-friendly interface and ease of use.

Weaknesses:

• Complexity: Some users find the platform complex and challenging to navigate.
• Pricing model: The pricing model is quite expensive compared to the competitors.
• User interface: The user interface is considered outdated by some, and needs improvement.
• Collaboration features: There is no real collaborative work between different teams.

3. Tipalti

Tipalti is an end-to-end solution that automates the payables cycle, from procurement and supplier onboarding to invoice processing, outbound payments, and reconciliation. It is designed to eliminate up to 80% of manual workload, making it a highly efficient choice for managing global payments to suppliers, affiliates, freelancers, and partners.

With features like OCR invoice scanning, multi-entity support, and ERP integrations, Tipalti streamlines financial operations and supports compliance with global tax laws.

Best features:

• Global payments: Facilitates payments to 196 countries in local currencies.
• Supplier management: Simplifies onboarding and managing supplier information.
• Invoice automation: Utilizes OCR technology for invoice scanning and processing.
• Financial reconciliation: Offers instant reconciliation with ERP integrations.

Strengths:

• User-friendly interface: Known for its ease of use and intuitive design.
• Efficiency: Significantly reduces manual workload and increases speed of operations.
• Automation: Automates critical financial processes, driving efficiency.
• Customer satisfaction: Maintains a high level of customer satisfaction.

Weaknesses:

• Complexity: Some users may find the system complex and challenging to navigate.
• Manual entry: There are concerns about manual entry requirements in some areas.
• Approval issues: Users have reported issues with the approval process.
• User experience: The user experience is considered to need improvement, with some finding it outdated.

4. ADAM

ADAM is a cloud-based procurement system that specializes in enhancing daily operations for businesses, with an aim to improve sales and revenue.

This purchase order software is equipped with an integrated set of tools that streamline inventory organization, customer and contact management, finances, and accounting, thereby boosting productivity and profitability.

Best features:

• Inventory management: Keeps track of stock levels and helps maintain optimal inventory.
• Sales order processing: Streamlines the process from order taking to fulfillment.
• Purchasing and receiving: Manages the procurement cycle efficiently from purchase to delivery.
• Financial management: Integrates accounts payable, accounts receivable, and general ledger.

Strengths:

• Ease of navigation: ADAM’s interface is designed for quick and comfortable navigation.
• Productive personnel: Intuitive interface reduces training time and costs.
• Pop-up help: Offers technical assistance through pop-up inquiries for quick problem-solving.
• Event notifications: Automatic notification system for timely order processing and request fulfillment.

Weaknesses:

• Complexity for new users: Some users may initially find the system complex.
• Limited customization: There might be constraints in tailoring the software to specific business needs.
• Integration with other systems: While ADAM integrates well within its ecosystem, it may have limitations when connecting with external systems.
• Reporting features: The reporting capabilities may not be as robust as those offered by larger competitors.

5. Syspro procurement

Syspro is an enterprise resource planning (ERP) software that specializes in providing solutions for manufacturers and distributors. It offers a range of functionalities including procurement, inventory management, sales order processing, and financial management.

Syspro’s focus on industries such as food, beverage, and fabricated metal makes it an excellent fit for businesses within these sectors. Its scalability allows for customization to meet the evolving needs of companies of all sizes.

Best features:

• Industry-specific solutions: Tailored features for sectors like food and beverage, electronics, and more.
• Scalability: Ability to add or remove modules as business needs change.
• AI and IoT integrations: Advanced integrations for a smarter, more connected experience.
• Hybrid deployment: Offers both cloud-based and on-premise deployment options.

Strengths:

• User-friendliness: Known for its accessibility and ease of use across devices.
• Customization: Highly customizable to fit the unique needs of various industries.
• Global compliance: Supports parallel accounting for adherence to global regulations.
• Comprehensive visibility: Provides complete visibility across business operations.

Weaknesses:

• Learning curve: Some users may find the system complex and may require training.
• Cost: The pricing model can be a concern for small to medium-sized businesses.
• User interface: The user interface could be modernized for a better user experience.
• Integration challenges: While generally robust, integration with external systems can sometimes be challenging.

6. Ecount procurement

Ecount is a cloud-based ERP solution that provides various features to manage a business’s various aspects, including procurement, accounting, inventory, sales, and payroll.

It is designed to offer a comprehensive suite of tools that can help streamline operations, improve efficiency, and reduce costs. Ecount’s real-time data and reporting capabilities enable businesses to make informed decisions quickly.

Best features:

• All-in-one ERP: Integrates multiple business functions into a single platform.
• Real-time data: Offers up-to-date information for better decision-making.
• Customizable reports: Tailors reports to meet specific business requirements.

Strengths:

• Ease of use: Users find Ecount easy to understand and learn, which simplifies the transition to a new system.
• Customer support: Ecount offers strong customer support, ensuring users have the needed help.
• Flexibility: The system is flexible and can be adapted to various business needs.

Weaknesses:

• Navigation complexity: Some users report difficulty navigating the system and setting it up for specific tasks.
• Limited integration: Ecount does not connect with some external providers, such as Amazon, Shopify, eBay, PayPal, and banking institutions.
• No offline version: Being fully web-based, Ecount does not offer an offline version, which could be a limitation for some businesses.
• Error handling: There are reports of errors in printing and occasional system issues that need to be addressed.

7. Procurify

Procurify aims to make purchasing straightforward and efficient. This purchasing software is visually appealing and easy to adopt for all team members, allowing finance and operations departments to minimize process corrections and invoice chasing.

With automated approval flows, real-time budget commitments, mobile app access, and a custom catalog, Procurify makes it fast to request, approve, receive, and reconcile purchases.

Best features:

• Real-time budget tracking: Keeps spending in check with immediate updates.
• Custom user control: Tailors the system to meet specific organizational needs.
• Electronic purchase order approval: Streamlines the approval process for purchase orders.
• Mobile apps: Provides the flexibility to manage procurement on the go.

Strengths:

• Ease of use: Users appreciate the platform’s simplicity and intuitive design.
• Integration: Smooth integration with Amazon and other vendors for easy ordering.
• Customer support: Noted for responsive and helpful customer service.
• Customization options: Offers multiple customization options to fit various needs.

Weaknesses:

• System speed: Some reviews cite a slow system which can affect efficiency.
• Integration difficulty: Challenges in integration with other systems have been reported.
• Inventory management: The lack of inventory management features is noted as a drawback.

8. JAGGAER ONE

JAGGAER offers a cloud-based, integrated procurement platform that is renowned for its ability to manage the entire procurement lifecycle. It is particularly favored in the higher education and government sectors for its scalable and customizable platform.

Jaggaer’s suite includes eProcurement, strategic sourcing, supplier management, contract lifecycle management, and spend analytics, providing unparalleled visibility and insights into procurement operations.

Best features:

• Scalable platform: Adapts to the size and complexity of any organization.
• Supplier management: Streamlines supplier onboarding and collaboration.
• Contract management: Automates and manages the entire contract lifecycle.
• Spend analytics: Delivers insights for better spend management decisions.

Strengths:

• User-friendly interface: The platform is noted for its ease of navigation.
• Customizable solutions: Offers a high degree of customization to meet specific needs.
• Strong support: Users appreciate the quality of customer support provided.
• Regular updates: Frequent updates add new capabilities and enhance existing features.

Weaknesses:

• Complexity with large data: Handling large volumes of data can be challenging.
• Scope limitations: May not fully meet the needs of very large or complex organizations.
• Customization constraints: While customizable, there are areas where users desire more flexibility.
• Integration challenges: Some users report difficulties with integrating external systems.

9. Coupa BSM

Coupa’s BSM platform provides end-to-end processes that help drive collaboration across various business leaders, including supply chain, procurement, finance, treasury, compliance, and IT.

It aims to give companies the visibility and control they need over their spend management. Coupa is known for its ease of use and intuitive user interface that simplifies navigation and procurement tasks.

Best features:

• Unified spend management: A single source for all spend management needs, offering unparalleled control and visibility.
• Requests and approvals: Centralizes and manages requests efficiently, ensuring they reach the right approvers.
• Invoices and expenses: Automates Accounts Payable with multi-level automated invoice validation and dynamic approval workflows.
• Vendor management: Integrated vendor onboarding and management solution helps vendors self-service and eliminates silos.

Strengths:

• User-friendly interface: Many users find Coupa easy to use and navigate.
• Integration: Coupa integrates well with ERP systems like S/4HANA, enhancing procurement processes.
• Global payments platform: Offers a secure, global payments platform that maximizes rebates and working capital.
• Customer success: Coupa has a strong commitment to ensuring customer success and focuses on delivering results through innovation.

Weaknesses:

• Complexity: Some users find Coupa complex, especially when handling large volumes of data.
• Pricing model: The pricing model could be expensive for some customers.
• Customization: There are areas where users would like more flexibility in customization.
• Scope limitations: The platform may have limitations for very large or complex organizations.

10. Team Procure

Team Procure provides a comprehensive set of tools that streamline the procurement process, from request management to warehouse inventory management.

The platform supports RFQ and e-auction negotiations (e-procurement), helping businesses secure the best supplier deals. It also enables the generation of custom reports based on department, project, or category, aiding in data-driven decision-making..

Best features:

• Request management: Simplifies the creation and tracking of procurement requests.
• Procurement management: Manages the entire procurement cycle effectively.
  Inventory management module: Keeps track of inventory levels and movements.
• Approval workflow: Streamlines the approval process with sophisticated solutions.
• Supplier management: Enhances supplier relationships and performance tracking.

Strengths:

• Ease of use: The software is praised for its user-friendly interface and ease of operation.
• Approval process solutions: Offers sophisticated solutions for the management team’s approval processes.
• Integration: Seamlessly integrates with accounting software, increasing procurement efficiencies.

Weaknesses:

• Inventory management: There is room for improvement in the inventory management features.
• System speed: Some users have noted that the system could be faster to enhance efficiency.

11. Precoro

Precoro simplifies the procurement process with its user-friendly interface and powerful features. It allows for creating, approving, and tracking purchase orders with just a few clicks.

The platform manages suppliers, item catalogs, inventory, and more within one centralized system. Common industries that use Precoro include biotechnology, construction, technology, healthcare, manufacturing, and hospitality.

Best features:

• Customizable workflows: Tailor the approval process to fit your company’s structure.
• Amazon punch-in: Easily transfer orders from Amazon Business.
• Real-time budget tracking: Keep a close eye on your spending and never exceed your budget.
• Centralized supplier management: Manage all supplier information in one place.

Strengths:

• Simple pricing: The pricing is straightforward and easy to understand.
• Intuitive interface: Users find the layout manageable despite being visually crowded at times.
• Strong integrations: Offers solid integrations with top accounting systems like QuickBooks Online, NetSuite, and Xero.
• Support and scalability: Known for excellent customer support and scalability to fit business needs.

Weaknesses:

• Few native ERP integrations: Lacks native integrations with some ERP systems.
• Mobile app experience: The user experience on the mobile app is reported to be less than ideal.
• Visual clutter: Some users find the purchase requisitions visually cluttered.
• Cost comparison: May be more expensive than competitor products.

12. GEP Smart

GEP Smart streamlines procurement operations by offering a unified platform that covers the entire procurement lifecycle. This purchasing system facilitates easy transitions between expiring contracts to new sourcing events, sourcing awards to draft contracts or new orders, and contracts to new catalogs or orders.

This seamless integration across procurement stages makes GEP Smart a versatile tool for organizations looking to optimize their procurement processes.

Best features:

• Unified S2P platform: A single solution for all procurement needs, from sourcing to payment.
• Cloud delivery model: Ensures accessibility and scalability for businesses of all sizes.
• Integration capabilities: Offers full integration with existing systems, enhancing procurement operations.
• User-friendly interface: Known for its intuitive design, which simplifies user interaction.

Strengths:

• Continuous improvement: GEP is committed to continually improving the product’s capabilities and user experience.
• Best-in-class system uptime: Ensures reliability and availability of the procurement system.
• Responsive user support: Quick and effective resolution of issues, enhancing user satisfaction.

Weaknesses:

• Data handling: Some users report challenges with managing large volumes of data.
• Monthly data issues: There have been concerns about the consistency and cleanliness of monthly data.

How to Choose The Right Procurement Software for Your Business

Now that you have learned all the twelve best procurement software in Malaysia, you might be overwhelmed with choosing the right one out of those choices.

Choosing the right procurement software for Malaysian companies involves carefully considering several factors to ensure that the software aligns with the company’s specific needs and operational workflows.

Here are some key points to consider:

• Assess your needs: Understanding your company’s procurement needs is essential. Pinpoint current challenges and desired features, such as order automation, vendor management, spend analysis, and system integration.
• Scalability and flexibility: Choose scalable procurement software for growing transaction volumes that is adaptable to evolving business processes.
• Integration capabilities: Select procurement software that integrates well with existing systems like ERP and accounting, ensuring efficient data flow and less manual entry.
• User-friendly interface: Choose procurement software with a user-friendly design that is easy to use and requires little training.
• Security and compliance: Ensure procurement software meets top security standards and aids in compliance with procurement regulations.
• Vendor credibility and support: Verify the vendor’s market reputation through reviews, case studies, and feedback from Malaysian firms, ensuring they provide strong support and software updates.
• Cost-effectiveness: Consider the total cost of ownership, including implementation and maintenance, ensuring the software provides long-term cost savings.
• Demo and free trial: Request a demo and use free trials to test the software’s functionality and confirm it meets your needs.

To check a software’s credibility, you can visit industry forums, read online reviews, and ask for references from the vendor. Additionally, attending industry events and networking with peers can provide insights into the software’s performance and reliability.

It’s also advisable to consult with IT professionals and procurement experts who can offer guidance based on their experience and knowledge of the market.

In summary, selecting the right procurement software for Malaysian companies requires thoroughly evaluating your procurement processes, a clear understanding of the software’s features and benefits, and due diligence in researching the vendor’s track record and customer satisfaction.

By taking these steps, you can make an informed decision to streamline your procurement activities and contribute to your company’s success.

Conclusion

It’s crucial to choose software that meets current needs and adapts to future challenges. HashMicro’s procurement software emerges as a top contender in Malaysia, offering unparalleled efficiency and a user-friendly experience.

By opting for HashMicro, companies can expect a significant enhancement in their procurement operations, leading to better cost management and time savings.

We understand the importance of making informed decisions, especially involving your business’s operational backbone. That’s why we invite you to explore the capabilities of HashMicro’s procurement software through a no-obligation free demo.

Take advantage of this opportunity to elevate your procurement strategy with HashMicro. Act now and experience the benefits that many satisfied customers are already enjoying. Your business deserves the best—let HashMicro show you what that looks like.

FAQ about Procurement Software

• What are the key features to look for in procurement software?

  Key features to consider in procurement software include purchase order management, supplier management, budget tracking, approval workflows, spend analysis, and integration capabilities with existing systems. Advanced features might include AI-driven spend classification, real-time reporting, and mobile accessibility. These features help streamline procurement processes, enhance visibility, and ensure compliance with corporate policies and legal standards.

• How does procurement software integrate with other business systems?

  Procurement software often integrates with ERP systems, accounting software, and other business management tools to provide a seamless flow of information across different departments. This integration ensures that procurement activities are aligned with financial and operational data, enabling better decision-making and improved efficiency. Most modern procurement solutions offer API capabilities to facilitate these integrations.

• How can procurement software help manage supplier relationships?

  Procurement software aids in managing supplier relationships by providing tools for supplier evaluation, performance tracking, and communication. Features like supplier portals, contract management, and automated RFQ (Request for Quotation) processes enable businesses to maintain transparent and efficient supplier interactions. This helps build stronger, more reliable supplier partnerships and ensures that procurement processes are streamlined and compliant.

• Is procurement software scalable for growing businesses?

  Yes, procurement software is designed to be scalable to accommodate the needs of growing businesses. Many solutions offer modular features that can be added as the business expands. Scalability ensures that the software can handle increased transaction volumes, additional users, and more complex procurement processes without compromising performance. This adaptability is crucial for businesses looking to grow and streamline their procurement operations efficiently.

• What are the costs associated with implementing procurement software?

  The costs of procurement software vary widely depending on the features, scalability, and vendor. Pricing models can include monthly subscriptions per user or transaction-based fees. Some vendors offer basic plans for small businesses, while more comprehensive packages for larger organizations might require custom quotes. It’s important to consider both the initial implementation costs and ongoing subscription fees when evaluating procurement software.