Procurement Software in the Insurance Sector: A Practical Guide for Operations Professionals

If you work at an insurance company and have recently been informed that new procurement software is being implemented, you probably have questions and perhaps concerns. How will this affect your daily work? What will you need to learn? Will it make your tasks simpler or more complicated?

This guide helps you understand what to expect from a modern enterprise procurement system (such as SAP Ariba, Coupa, or Oracle Procurement Cloud). We present the most important functions, benefits, and tips from an end-user perspective to help you use the system effectively and overcome everyday challenges.

💡 Tip: At the end of the article, you'll find a detailed evaluation checklist to help with systematic software selection.

What Does the New Procurement Software Mean for You?

The most common tasks the system will help you with:

• Creating and tracking procurement requisitions: Simplified process for requesting products and services, with real-time tracking of approval status.
• Catalog-based ordering: Simple search among pre-approved products and services with guaranteed prices and terms.
• Invoice verification and approval: Digital invoice verification and approval, eliminating paper-based processes.
• Accessing supplier information: Quick access to contracted suppliers' contact details, contractual terms, and performance data.
• Cost tracking: Detailed overview of expenses related to your area or projects.

Expected benefits for you:

• Less administrative time: Automation of manual, paper-based processes can significantly reduce time spent on administration.
• Faster approval processes: Automated approval workflows accelerate procurement, allowing you to access needed products and services sooner.
• Easier policy compliance: The system helps ensure compliance with corporate policies, reducing the risk of non-compliant purchases.
• Better information access: Real-time information about procurement request status, delivery deadlines, and budgets.
• Fewer errors: Automated data validation and verification functions reduce data entry errors and related problems.

Procurement Software in Daily Operations: What to Expect?

1. User Interface and Navigation

Modern procurement systems typically feature intuitive, user-friendly interfaces. Here's what to expect:

What you'll see:

• Clear dashboard with key information and quick access to common tasks
• Top navigation menu for main functions
• Search field for quick information retrieval
• Notification area with pending approvals and updates

Tip: Most systems allow dashboard customization. After your first login, spend a few minutes personalizing the interface so that your most frequently used functions are most easily accessible.

2. Creating Procurement Requisitions

This is probably one of the most common tasks you'll perform in the system.

How it works:

1. Find the "New Requisition" or similar function
2. Select the procurement type (goods, services, etc.)
3. Search for the desired product in the catalog, or enter details for non-catalog items
4. Enter required quantity, shipping information, and other details
5. Attach all necessary documents
6. Submit for approval

Tip: Use the "save as draft" option if you're creating a complex requisition and can't complete it in one session. Most systems also allow copying previous requisitions, which can save time for recurring purchases.

3. Approval Processes and Notifications

Modern systems automatically route requisitions to the appropriate approvers.

What you'll experience:

• Automatic notifications (by email and/or within the system) about requisition status changes
• Clear information about who the next approver is
• Ability to add comments or request additional information
• Reminders about pending approvals (if you're an approver)

Tip: If you need urgent approval, most systems allow you to notify the approver directly within the system or indicate the urgency of the purchase.

4. Catalog Browsing and Product Search

Catalog-based procurement is one of the biggest advantages of modern systems.

How it works:

• Browse by categories or search by keywords
• Detailed product descriptions, images, and pricing information
• Filtering options (e.g., price, supplier, delivery time)
• Comparison functions for multiple products
• Quick access to frequently ordered items

Tip: Use specialized search functions for precise results. For example, if you know a model number or product code, searching with that often gives more accurate results than searching with general descriptions.

5. Order and Shipment Tracking

The procurement system enables tracking the complete lifecycle of orders.

What you'll see:

• Current order status (pending approval, sent to supplier, processing, shipping, etc.)
• Expected delivery dates and updates
• Problem or delay notifications
• Recording receipt of products/services

Tip: If the system has a mobile application, it might be worth installing it so you can track important shipments or approve urgent requests while on the go.

6. Invoice Management and Reconciliation

Modern systems automatically match invoices with purchase orders and receipt confirmations.

How it works:

1. The supplier submits the invoice (electronically or on paper, which is then scanned)
2. The system automatically matches invoice data with purchase order and receipt data
3. In case of discrepancies, it notifies the responsible persons
4. If there's a match, it automatically forwards the invoice for processing

Tip: If you're responsible for invoice verification, make sure receipts are recorded in the system on time, as this is necessary for automatic reconciliation.

Common Challenges and Solutions

Challenge 1: Difficulty finding products or services

Solutions:

• Try different search terms (synonyms, abbreviations)
• Use catalog categories for browsing
• Ask the procurement department for help adding new items to the catalog
• Use the "non-catalog item" option if the desired product isn't found, but provide detailed description

Challenge 2: Requisition "stuck" in the approval process

Solutions:

• Check the requisition status and current approver
• Send a polite reminder to the approver directly within the system
• If urgent, contact by phone or in person
• If the approver is away, ask the procurement department about substitute approvers

Challenge 3: Need to modify a previous requisition

Solutions:

• If the requisition hasn't been approved yet, it can usually be withdrawn and modified
• If already approved but not yet sent to the supplier, ask the procurement department for help with modifications
• If already sent to the supplier, create a modification request in the system

Challenge 4: Error message or technical problem

Solutions:

• Take a screenshot of the error message
• Check the system's internal knowledge base for common errors
• Contact the designated local super-user
• Report the problem through the helpdesk, including the screenshot and exact steps that led to the error

Challenge 5: Urgent procurement when there's no time for the standard process

Solutions:

• Check if there's an "emergency procurement" option in the system
• Speak with the procurement department about available expedited processes
• Use the system's mobile application to speed up approvals
• Learn the rules for exceptional cases in advance

Insurance Sector-Specific Information

For users working in the insurance industry, some special considerations:

Compliance Requirements

The insurance sector operates under strict regulation, which also affects procurement processes.

What you need to know:

• The system likely contains built-in controls to ensure regulatory compliance
• For certain suppliers, additional due diligence documents may be required
• Special approval levels may exist for suppliers handling sensitive data
• You must document certain procurement decisions for audits

Tip: Learn the insurance-specific compliance requirements for your area. Most systems can handle these automatically, but only if you properly complete the required fields.

Claims-Related Procurement

Insurance companies often have special procurement related to claims processing.

What you need to know:

• You may need to provide claim numbers or customer IDs for certain purchases
• The system may link procurement to the appropriate claims management system
• Special emergency processes may exist for claims settlement-related procurement
• Cost allocation may go directly to the claim or appropriate claims settlement department

Tip: If you regularly handle claims-related procurement, request specific training on managing these, as they often follow different processes.

Third-Party Risk Management in the Insurance Environment

The insurance sector is particularly sensitive to risks from third parties (suppliers).

What you'll notice:

• More detailed supplier evaluation information
• Data protection and security certifications for suppliers
• Availability of contractual terms and compliance information
• Warnings if a supplier doesn't meet insurance industry standards

Tip: If you want to work with a new supplier, check in advance whether they meet insurance requirements before investing time in the procurement process.

Tips for Effective System Use

Time-Saving Tips:

• Use templates and favorites: Save frequently used requisitions as templates or add often-ordered products to favorites.
• Learn keyboard shortcuts: Most systems offer quick keys for common operations that can significantly speed up work.
• Use bulk operation functions: If you need to handle multiple similar items, see if there are bulk operation options (e.g., approving multiple invoices at once).
• Set up notifications: Configure notifications so you only receive immediate alerts about the most important information, avoiding notification overload.
• Export data: If you regularly create reports, learn how to export data to Excel format for faster analysis.

Error Prevention Tips:

• Always check requisitions before submitting: Especially quantity, unit price, and shipping information.
• Use the comment field: Provide all relevant information in the comment field so approvers and the procurement department understand your request exactly.
• Check the cost center: Incorrect cost center assignment can lead to administrative problems later.
• Avoid duplicate requisitions: If a requisition is already in progress, don't create another one, but track and expedite the original if necessary.
• Track receipts: Timely recorded receipts ensure accurate invoice processing and faster payment to suppliers.

Training and Support Tips:

• Attend all available training: Even if you feel the system is simple, training often reveals functions you wouldn't otherwise discover.
• Find out who the local super-user is: Every department usually has one or two colleagues who received deeper training and can help with daily problems.
• Use built-in help: Modern systems typically contain detailed, context-sensitive help, often with videos and step-by-step guides.
• Share tips with colleagues: If you discover a useful function or solution, share it with your team.
• Provide feedback: Most systems are continuously developed, so report problems and suggestions to the procurement team or system administrators.

Conclusion

The new procurement system aims to make procurement processes simpler and more transparent. While you'll initially need to learn new things, using the system will save you more and more time and reduce administrative burdens.

As an end user, your feedback is extremely valuable for continuous improvement of the system and processes. Don't hesitate to share your experiences, questions, and suggestions with the procurement team or system administrators.

Most users find that after the initial learning period, procurement software significantly simplifies daily procurement tasks, leaving more time for real work and value creation.

Remember: the system is a tool designed to support your work. If you learn to use it effectively, you can save valuable time and resources for yourself and your organization.

Downloadable Resources

Procurement Software Evaluation Checklist - Detailed checklist for software evaluation from a mid-level management perspective, including:

• Process efficiency criteria
• Cost management requirements
• Supplier performance management aspects
• Integration requirements
• Reporting capabilities evaluation
• Risk management and compliance functionalities
• Operational resilience assessment criteria

Download the procurement software evaluation checklist here.