PO software ranges from a numbering scheme with a form in front of it to a procurement suite that takes a year to implement. A team of a few people that currently raises orders in a spreadsheet does not need most of the range, and buying it anyway is how a system ends up abandoned. Four capabilities cover the genuine need, and the rest can wait until there is somebody whose job is buying.
Numbering that nobody has to think about
A purchase order number is the handle everything else hangs on: the supplier quotes it, the delivery note carries it, the invoice references it and payables matches on it. It has to be issued automatically, be unique and never be reused, and it has to be easy for whoever is raising the order to find again. That is genuinely all a numbering scheme has to do, and manual schemes fail on the never reused part.
Approval before it leaves
An order that goes to a supplier without approval is a commitment the organisation has already made. Getting the approval before the order is sent, rather than when the invoice appears, is the entire control, and for a small team a single rule with one threshold is usually enough. Complexity here is the main reason people abandon a system and go back to email.
Receipt and a list of what is open
Somebody records that the goods arrived, and anyone can see which orders are still outstanding. These two together give you the accrual at month end and the chase list for late deliveries, both of which small teams otherwise rebuild by hand. If a product does these badly, it does not matter how good the ordering form is.
Questions people ask about po software
Can we just use a spreadsheet for purchase orders?
Plenty of small teams do, and it works until two people raise an order at once or somebody needs to know what is open without asking. The failure mode is duplicated numbers and a stale open list, both of which cost more to unpick than they saved.
What is the difference between PO software and procurement software?
PO software issues and tracks orders. Procurement software usually adds sourcing, supplier management, catalogues and contracts. If you do not have somebody whose job is buying, the extra surface is mostly cost.
Does the supplier need to use it too?
No, for the basics. The supplier receives an order document as they always did. Supplier portals are a later step and they change what suppliers have to do, so they need a reason beyond convenience for you.