Procurement often gets stuck in the weeds – tracking down quotes, juggling purchase orders and keeping invoices in check. It’s seen as a necessary burden, not a source of competitive advantage.
But when procurement is treated strategically, it protects margins, strengthens supplier relationships and keeps supply chains running smoothly.
Where traditional procurement processes fall short
For many businesses, procurement is a tangled mess of spreadsheets, emails and gut decisions. Vendor data is scattered across systems, purchase orders are manually tracked and invoice approvals feel like an endless paper chase. This often leads to:
- Missed savings | Without real-time insights, businesses lose out on opportunities to negotiate better terms or consolidate spending.
- Supply chain vulnerabilities | Reactive buying leaves companies exposed to delays, shortages and unexpected costs.
- Strained supplier relationships | Late payments and misaligned expectations chip away at trust and collaboration.
In this environment, procurement is more about fixing problems than preventing them. But it doesn’t have to be that way.
NetSuite has the ability to shift procurement from reactive to proactive – through automating routine processes, consolidating supplier data and providing real-time insights.
This means fewer surprises, errors and headaches. Instead of constantly course-correcting, businesses can focus on building stronger supplier relationships and making smarter purchasing decisions that protect margins and drive long-term growth.
How NetSuite supports the procurement function
NetSuite is a cloud-based ERP platform that integrates core business functions like finance, inventory, and operations. Among its many capabilities, NetSuite offers an integrated suite of procurement tools to streamline processes and gain deeper control over spending.
Core procurement functionalities come standard with NetSuite ERP, including creating purchase orders, managing vendor transactions, and tracking approvals. As your procurement needs grow, NetSuite’s flexible modules can scale with your business, automating tasks, adding advanced controls, and offering real-time insights.
The range and depth of NetSuite procurement functionality
Purchase orders and vendor management – part of the core ERP
Standard NetSuite functionality for creating, approving, and tracking purchase orders while maintaining a centralised vendor database.
- Purchase order creation | NetSuite provides out-of-the-box functionality for creating and managing purchase orders. You can create POs, set approval workflows (with standard options) and track the lifecycle of each order from creation to invoicing.
- Vendor management | The centralised vendor management system is part of the standard NetSuite ERP, where you can store detailed vendor records (contact info, payment terms, historical data, etc.) and track transactions across all suppliers.
- Reporting and tracking | NetSuite includes PO tracking and reporting functionality, allowing businesses to monitor order status and maintain an audit trail of transactions.
Advanced Procurement – additional module
Enhances procurement capabilities with features like blanket purchase orders (BPOs), purchase contracts and request-for-quote (RFQ) management, offering greater control over recurring purchases and supplier agreements.
- Automated requisition workflows | Streamlines the process of requesting and approving purchases across departments, ensuring faster and more efficient procurement.
- Multi-level approval processes | Configurable approval hierarchies based on factors like purchase amount or department, ensuring that purchases are approved by the right stakeholders.
- Vendor performance tracking | Monitors key performance indicators (KPIs) such as delivery times, quality and reliability, enabling better supplier management and decision-making.
- Blanket purchase orders and purchase contracts | Facilitates long-term supplier agreements, locking in pricing and terms for recurring purchases to ensure consistency and compliance.
- Negotiate and formalise extended contracts with suppliers, securing favourable terms and pricing stability.
SuiteProcurement
This is an emerging solution available in North America as part of NetSuite 2025 Release 1. This module allows employees to purchase directly from integrated supplier e-commerce platforms, ensuring compliance while reducing manual effort.
- Allow employees to shop directly from approved suppliers’ online stores within NetSuite, streamlining the purchasing process.
- Automatically generate purchase requests upon checkout, initiating the approval process and ensuring policy adherence.
- Ensure all indirect purchases align with company policies by restricting transactions to approved vendors and pre-negotiated contracts.
Why modular procurement makes sense
Every business approaches procurement differently – some focus on cost control, while others prioritise supplier collaboration or supply chain agility. NetSuite’s modular, configurable framework caters to these different priorities, allowing businesses to scale their procurement processes as they grow.
NetSuite’s flexibility means you can start with basic functionality and add more advanced modules as your needs evolve, ensuring procurement scales alongside your business. Everything is managed within a single platform, offering control, visibility, and compliance at every step.
Cost control is just the beginning. When procurement runs smoothly, businesses unlock advantages that go far beyond the bottom line.
| Benefit | What it means for your business |
|---|---|
| Faster, smarter decisions | Centralised purchasing data gives teams the visibility they need to make informed decisions quickly – whether that’s renegotiating supplier terms or adjusting purchase orders to align with shifting demand. |
| Stronger, more reliable supplier relationships | Timely payments, clear communication and consistent processes build trust with vendors. Over time, this creates a foundation for more favourable terms and resilient partnerships. |
| Increased agility in uncertain environments | Real-time visibility into procurement activity allows businesses to spot trends early, mitigate risks and adjust before small issues escalate into costly disruptions. |
Procurement that powers what is next
Growth-focused businesses can’t afford to treat procurement as an afterthought. It’s not just a function to manage – it’s an opportunity to optimise. NetSuite changes that by automating routine tasks, consolidating supplier data, and surfacing insights that make procurement a source of strategic value.
When procurement runs smoothly, leaders can stop firefighting and start focusing on what really matters – scaling with confidence, knowing their supply chain can keep up with their ambition.
Ready to transform your supply chain?
Speak to Annexa to learn how NetSuite can future-proof your operations.
Learn more:
- A deep dive into how NetSuite transforms supply chains for ANZ businesses >
- How NetSuite streamlines supply chain operations – end to end >
- How NetSuite transforms inventory into a competitive advantage >
- A closer look at NetSuite Supply Chain Control Tower >
- Real-world use cases of NetSuite Demand Planning >