The market for procurement software emerged in the 1980s as Manufacturing Resource Planning (MRP) systems such as SAP, ASK and Oracle began incorporating modules for managing procure-to-pay processes.
In the first internet boom, dedicated e-procurement software systems were available from companies like Ariba and Commerce One to automate the purchase requisition process by allowing users to browse online catalogs to view products and services from approved suppliers.
Though behind initially, Oracle and SAP's procurement offerings matured over the next few years to provide integration with their broader ERP systems and challenge the first-mover advantage of the best-of-breed procure-to-pay specialists.
While the procurement software market remains divided between integrated and best-of-breed options, there is now greater focus on interoperability and joint go-to-market partnerships across vendors.
The use of such software also allows procurement managers to control the vendors used by the wider organisation so all employees take advantage of negotiated rates and other terms of service.