Why cybersecurity matters in Procurement

Here’s the thing, nothing good comes without a bit of evilness. Even for businesses, even for procurement. 

The rise of the use of IT tools has proven to be seriously advantageous for improving procurement processes, and yet, with so much information running, contracts, financial data, supplier details, and more, some people with dubious intentions could see it as an opportunity for crime. Or more precisely cybercrime. 

Cybersecurity in procurement should be a top priority. Without robust cybersecurity measures, this critical data becomes vulnerable to breaches, fraud, and operational disruptions. At any point, someone could enter into your systems and steal not only your information but also your or your client’s money. 

While that sounds terrifying, there’s a method to prevent it and it’s called: Cybersecurity. But how does it work in procurement? Let’s discover it. 

Cyber risks in procurement management

Here’s a fact you need to remember: Traditional or poorly secured procurement practices are a goldmine for cybercriminals. So let’s review some of the most common risks your company might face:

• Data breaches: The nightmare of every company. Exposure of sensitive information such as pricing, contracts, or supplier details due to weak security measures.
• Unauthorized access:  Yes, you read that right. Having poor control of who has access  to your systems can allow intruders or rogue employees to alter or steal critical information.
• Phishing attacks: Probably the most traditional method. Fraudulent emails or links designed to trick your employees into revealing login credentials or confidential data.
• Human errors: Nothing here against human work but some of us don’t fare well under pressure. Missteps, like sharing sensitive files with the wrong recipient, can unintentionally compromise your security.

The bigger problem with all of these risks? They don’t just threaten your data, they put your company’s credibility and partnerships on the line.

6 Cyber risks addressed by procurement software 

Now that we have seen the bad, let’s take a breath of relief and see how procurement software can help you to tackle cybersecurity risks head-on. Here’s how: 

1. Advanced authentication: Multi-factor authentication (MFA) makes sure that only authorized personnel can access the system, significantly reducing the chances of unauthorized access due to weak or stolen passwords. It can also integrate with biometric systems or time-sensitive codes for an extra layer of security.
2. Data encryption: End-to-end encryption safeguards sensitive information, both at rest and in transit. This ensures that even if intercepted, the data remains unreadable without the appropriate decryption keys, providing peace of mind during data transfers or cloud storage.
3. Audit trails: Detailed logs of all system activity make it easier to identify and address suspicious behavior. These logs provide a robust forensic trail for investigations and ensure accountability by tracking who did what, when, and how.
4. Access control management: Role-based permissions limit data access to only those who truly need it. This minimizes the risk of accidental or malicious data exposure by ensuring users can only view or edit information relevant to their job functions.
5. Secure integrations: APIs and other connections with external tools are secured using best-in-class encryption protocols. This prevents data breaches that often occur during third-party integrations, ensuring that every connection to external systems is safe and reliable.
6. Automatic updates: Regular security patches keep the software equipped to fend off the latest threats. This eliminates the risk of exploiting known vulnerabilities, ensuring that your system remains protected against newly emerging attack methods.

5 Key benefits of using Procurement Software

So procurement software is really good for my cyber security strategy? Heck yes! But in case you are still feeling doubtful, here are some of its most attractive benefits 

1. Comprehensive data protection: Your sensitive information stays private, accessible only to those who need it. With encryption and access control in place, the risk of leaks or unauthorized sharing is drastically reduced, keeping your data secure and compliant with confidentiality agreements.
2. Reduced vulnerabilities: Automation and secure protocols minimize human error and prevent avoidable risks. By automating repetitive tasks, such as approvals and document sharing, the software reduces the likelihood of mishaps caused by manual handling.
3. Enhanced trust: Employees and suppliers feel confident that their data is in good hands, strengthening internal and external relationships. This sense of security can lead to improved collaboration, higher engagement, and a stronger network of reliable partners.
4. Regulatory compliance: Procurement software helps meet data protection laws like GDPR or CCPA, avoiding hefty fines or reputational damage. Many solutions also provide built-in compliance reporting tools, simplifying audits and legal checks.
5. Cost savings: Preventing data breaches saves you from expensive recovery efforts and potential legal fees. Additionally, the efficiency and accuracy of automated systems reduce operational costs, offering long-term financial benefits.

Final Recommendations

If you’re considering implementing procurement software, here are three practical tips to make sure you get the most out of it:

• Pick a solution that works for you: Take some time to really understand what your team needs—security features like encryption and multi-factor authentication are a must. But don’t stop there. Look for a trusted provider with solid reviews and certifications. It’s like choosing a supplier—you want reliability and quality.
• Get your team on board: Even the best software won’t work if people don’t know how to use it safely. Make sure everyone understands how to avoid mistakes, spot phishing attempts, and follow security best practices. A little training up front can save a ton of headaches later.
• Stay on top of it: Once the system is up and running, don’t just set it and forget it. Keep an eye on it—check the logs, update the software regularly, and tweak permissions as your needs change. It’s like maintaining any other part of your operations: a little upkeep goes a long way.

By focusing on these areas, you’ll not only make your procurement process smoother but also keep sensitive data safe and sound. Trust me, it’s worth the effort!

Conclusion

Yes, procurement software can make wonders for your whole company, and while we usually focus on its impact on your operations, we shouldn’t forget that when it comes to finding ways to protect your data and reputation, there’s not a better method than working with the right tools capable of not only safeguard your business but also build stronger, more trusting relationships with partners and stakeholders.

Ready to level up your data security? Dive into the world of ControlHub procurement solutions and secure a safer future for your company. It’s a decision you won’t regret. 

About ControlHub

Launched in 2020, ControlHub is a fast-growing fintech startup revolutionizing procurement for hardware-centric businesses. ControlHub offers an intuitive purchasing software solution that streamlines the entire procurement lifecycle—helping businesses control, request, approve, purchase, pay, and reconcile spending efficiently.

ControlHub empowers companies to simplify spend management by eliminating manual processes, integrating with top e-commerce platforms like Amazon, McMaster-Carr, Digi-Key, and more, and seamlessly syncing with accounting tools such as QuickBooks and NetSuite. Features like personalized approval workflows, real-time tracking of POs, and supplier management ensure transparency, compliance, and cost control.
Designed for growing teams, ControlHub helps businesses save time, stay within budget, and make data-driven purchasing decisions—all while offering a hassle-free, scalable subscription model. Visit ControlHub to learn more.