What Is Procurement for MSPs?

For MSPs (and VARs), procurement isn't just about buying gear or licenses—it's about building complete solutions through a connected network of partners, apps, and processes.

Every deal you deliver requires you to source the right mix of products and services, often across different categories—hardware, software, cloud, connectivity, and more. Procurement is how you pull all of that together efficiently and profitably.

What makes MSP procurement unique is that it involves multiple transaction layers working in sync:

• Customer: The business that relies on your expertise to source and manage the right technology

• MSP/VAR: You—the provider designing, quoting, and delivering the solution

• Partner: The manufacturers, distributors, and service vendors supplying the components you need

Procurement sits at the center of this ecosystem, acting as the bridge between partner supply and customer delivery.

When done well, procurement enables smooth sales execution, faster fulfillment, and a better customer experience. When it’s disconnected or manual, it becomes a bottleneck that slows everything down—from quoting to billing—and quietly erodes your margins.

For MSPs looking to scale or modernize, digitizing procurement isn't optional—it’s foundational.

Types of Procurement: What MSPs Actually Buy

MSPs don’t just sell hardware or licenses—they deliver full-stack solutions. That means your procurement process has to handle a wide variety of products and services, each with their own sourcing methods, fulfillment models, and billing structures.

Here are the core categories you typically procure—and why each one requires a different approach:

• Hardware
  Think switches, laptops, firewalls, and security cameras. These items require shipping, inventory tracking, and often involve logistics coordination or pre-configuration before delivery.

• Software & Licensing
  Includes productivity tools, cybersecurity platforms, and third-party applications. Typically provisioned via license keys or tenant-based access, with recurring billing models.

• Cloud Infrastructure
  Services like Microsoft Azure or AWS. These are usage-based and require real-time metering, flexible billing, and integration with subscription management tools.

• Communications & Connectivity
  Internet circuits, VoIP services, number porting—anything that connects your client’s environment. These involve provisioning lead times and, in some cases, regulatory workflows.

• Professional & Managed Services
  Field work, assessments, or recurring managed service offerings. These are fulfilled through labor and may require scoping documents, scheduling, and task tracking.

Each category has its own procurement process, pricing model, and fulfillment workflow. Some are one-time purchases, others are ongoing subscriptions. Some are fulfilled by shipping a device, others by activating a service or assigning a license.

And that’s the challenge: Procurement isn’t a one-size-fits-all process. You need systems and workflows that can handle all of this without creating chaos for your team—or confusion for your customers.

Procurement Roles in an MSP: It’s a Team Sport

In most MSPs, procurement isn’t owned by just one person or department. It’s a cross-functional process that touches sales, operations, finance, and service delivery—often all at once.

Here’s how it typically breaks down:

• Sales Reps
  Sales is often the first team involved in procurement. They’re negotiating special pricing with vendors, working to hit customer budgets, and ensuring deals include everything needed to deliver the solution.

• Sales Operations
  Once a deal is signed, sales ops takes over to ensure all parts of the order are complete, accurate, and aligned with vendor expectations. They help translate quotes into actionable orders.

• Finance & Procurement Managers
  These are the approvers. They review orders for margin, vendor credit limits, and cash flow impact. In larger MSPs, a dedicated procurement manager may oversee compliance and process efficiency.

• Order Admins & Fulfillment Teams
  This group tracks shipments, manages subscriptions, coordinates with vendors, and ensures everything is delivered, activated, or installed as promised. They're also responsible for triggering customer invoicing.

The point is: Procurement isn't just operational—it's deeply strategic. And when these roles are disconnected or working in siloed systems, you get slow approvals, fulfillment delays, and revenue stuck in limbo.

Digital workflows help unify these roles and automate tasks—so everyone is working from the same source of truth, and orders move from quote to cash without bottlenecks.

What Is the Procurement Process?

The procurement process in an MSP isn’t a single task—it’s a chain of events that starts before a deal is even closed and continues until the customer is fully up and running.

Here’s what an ideal, digitally connected procurement process looks like:

Step 1: Solution Design & Quoting: The MSP builds a bill of materials (BOM), bundles products and services, and presents a proposal to the customer.

Step 2: Pre-Sale Negotiation: Sales or sales ops negotiates special pricing with vendors—this can happen during quoting, especially for large or non-standard deals.

Step 3: Internal Review & Approval: Operations validates the purchase order, confirms inventory availability, and approves the vendor purchase.

Step 4: Order Submission: Purchase orders are submitted—ideally through an API or digital workflow, not emailed PDFs or manual entries.

Step 5: Fulfillment Coordination: Hardware gets shipped. Licenses get provisioned. Services are scheduled. Everything aligns with the delivery plan in the customer’s quote.

Step 6: Billing & Reconciliation: Invoices are sent to the customer, matched against vendor invoices, and reconciled to ensure margin is preserved.

But in reality? For many MSPs, this flow is still fragmented and filled with manual steps. Systems don’t talk to each other. Data has to be re-entered. Tracking is inconsistent. And every manual handoff introduces risk: delays, errors, or missed billings.

The opportunity is clear, when your procurement process is unified and digital, you can move faster, sell more confidently, and deliver a customer experience that feels modern and seamless.

Procurement Analytics: Measuring What Matters

You can’t improve what you can’t measure. For MSPs, that means tracking the right procurement metrics—not just for internal efficiency, but for customer satisfaction and margin protection.

The most important metric to watch?
Order Processing Time (OPT) — the time from customer approval to when the full solution is delivered.

When tracked properly, OPT gives you visibility into both operational performance and customer experience. But that’s just the beginning.

Here’s what you should be measuring across your procurement workflows:

• Partner Performance
  Which distributors, vendors, or service providers consistently meet SLAs? Who’s slowing you down?

• Fulfillment Type
  Are hardware shipments taking longer than license provisioning? Do managed services take longer to activate?

• Recurring vs One-Time
  How long do subscription setups and billing take versus traditional hardware deployments?

• Order Complexity
  Are multi-vendor or bundled deals adding unexpected delays?

With digital procurement, you can track these metrics automatically and use the insights to improve workflows, choose better vendors, and proactively manage customer expectations.

Think of it like this: Order Processing Time is your MSP’s delivery heartbeat. The more visibility you have, the more confidently you can scale.

The Procurement Pain Points Undermining Your Growth

Most MSPs don’t struggle with procurement because they lack vision—they struggle because the tools and workflows available weren’t built for how they actually operate.

Here’s where it tends to break down:

• Manual Processes Everywhere
  Submitting purchase orders via email, attaching PDFs, logging into vendor portals... it’s all painfully slow and error-prone.

• Disconnected Systems
  Quoting, ordering, fulfillment, and billing often live in separate systems. That means constant copy/pasting, duplicate data entry, and no single source of truth.

• Human Error
  Manual entry opens the door to mistakes—wrong SKUs, incorrect quantities, missed shipping info—any of which can delay a project or damage trust.

• No Real-Time Visibility
  Customers want to know where their order is, just like they would on Amazon. Without digital status updates, your team becomes the help desk for “where’s my stuff?”

• Low Margins, High Overhead
  If your team spends hours processing orders that earn razor-thin margins, you’re not just inefficient—you’re losing money.

The worst part? These issues get worse as you grow. More deals, more vendors, more manual steps—it all adds up to friction that limits your ability to scale profitably.

Fixing procurement isn’t just about efficiency—it’s about unlocking growth.

What is Procurement Automation?

Procurement automation is the use of connected digital workflows to streamline how technology products and services are sourced, ordered, fulfilled, and billed—across vendors, categories, and customer needs.

It eliminates manual tasks like emailing PDFs, logging into portals, and hand-keying orders by integrating quoting, order management, distributor systems, and billing into one seamless process.

Manual procurement creates drag. Procurement automation creates momentum.

Here’s what the shift looks like:

Manual Procurement (Legacy Model):

• Orders sent via email as PDFs

• Pricing checked in multiple portals

• Humans tracking order statuses manually

• No real-time visibility for your team—or your customers

• Errors caught after they impact delivery

Digital Procurement (Modern Model):

• Orders submitted via API

• Real-time pricing and availability during quoting

• Live order tracking and fulfillment status updates

• One connected system from quote → order → invoice

• Fewer handoffs, fewer mistakes, faster delivery

When procurement goes digital, everything gets easier:

• Sales can quote and sell more confidently

• Ops can fulfill orders with fewer touchpoints

• Finance can reconcile faster and protect margins

• Customers get a seamless experience with real-time updates

Bottom line: Digital procurement isn't just a productivity boost—it's a customer experience and growth strategy.

Procurement Solutions: Beyond Traditional Software

Most “procurement software” wasn’t built for MSPs. They are built to serve many types of industries, or what we call "horizontal" software.

MSP sales requires something more focused and nuanced.

You’re not selling one thing from one vendor. You’re assembling complex, multi-vendor technology solutions with a mix of hardware, cloud services, apps, and recurring subscriptions.

And that’s where traditional procurement systems fall short. Most only handle:

• Simple purchase order creation

• Basic approval workflows

• Static vendor lists

• One type of fulfillment method ( one-time vs subscription)

• One type of category (hardware vs software vs services)

But in your world, procurement needs to be flexible and intelligent. You need to manage everything from a switch and a license to a usage-based cloud service—all within the same platform.

That means your procurement solution must do more than process POs. It needs to connect quoting, ordering, fulfillment, and billing into a single workflow—without manual re-entry or disconnected tools.

If your current tools can’t support that, you don’t need more staff—you need better infrastructure.

Essential Capabilities for MSP Procurement Transformation

If you want procurement to support scale—not slow it down—you need more than just a tool. You need a platform purpose-built for the real-world complexity of MSP operations.

Here's an overview from our Founder and CEO, Philip Wegner:

• End-to-End Integration
  Your procurement system must connect directly to CPQ, ordering, fulfillment, and billing. No more disconnected tools, no more swivel-chair operations.

• Multi-Category Support
  Hardware. Software. Cloud. Services. Communications. Your platform must handle all of it—with workflows tailored to each type of item, not just physical products.

• Subscription Management
  Recurring items—like Microsoft licenses or cloud infrastructure—require automated billing, usage tracking, and lifecycle handling. Static POs won’t cut it.

• API-Driven Architecture
  Manual ordering is out. Digital platforms must support direct API connections to distributors and vendors to eliminate re-keying and enable real-time updates.

• Scalable Workflows
  You need the ability to handle more orders without more headcount. That means rule-based automation, approval routing, and intelligent defaults that reduce busywork.

• Flexibility Over Templates
  Every MSP builds their own offers, bundles, and service models. Your procurement system shouldn’t force you into rigid structures—it should flex with how you operate.

The takeaway? You can’t bolt procurement onto the side of your business anymore. It has to be embedded into how your MSP quotes, sells, fulfills, and bills—across every deal.

Building Your AI-Ready Procurement Foundation

Every MSP is hearing about AI. But here’s the truth: AI won’t help if your procurement process is still manual, fragmented, and offline.

Before you can take advantage of automation or intelligent workflows, you need a solid digital foundation. That starts with connected systems and clean data.

Here’s how to get there:

• Digitize the Entire Workflow
  From quoting to order submission to billing—every step needs to happen in software, not spreadsheets or email threads.

• Unify Your Systems
  Your quoting tool, order management, procurement platform, and billing system should talk to each other. No more rekeying data. No more lost context.

• Automate the Repeatable
  Use rule-based logic to auto-approve and fulfill orders that meet margin, credit, or inventory criteria—freeing up your team to focus on the edge cases.

• Track Performance in Real Time
  Build visibility across your vendors, order types, and fulfillment timelines. This data becomes the engine for future AI use cases—like smart routing, predictive SLAs, and margin optimization.

You can’t skip steps. AI-ready means being workflow-ready first.

Once your procurement runs on clean, connected systems, you can layer in intelligence that actually delivers value.

The Strategic Imperative: Transform or Be Left Behind

Procurement isn’t just a back-office function—it’s a growth lever.

For MSPs, the ability to deliver fast, accurate, and seamless solutions to customers starts with procurement. If your process is manual, disconnected, or inconsistent, it’s not just an operational burden—it’s a competitive risk.

Today’s customers expect transparency, speed, and digital experiences. If you can’t provide that, they’ll look elsewhere—to cloud marketplaces, direct vendor portals, or competitors who can.

Digitizing procurement enables:

• Faster deal execution

• Higher margin protection

• Scalable operations without adding headcount

• A customer experience that feels modern and trustworthy

And it’s not just about keeping up—it’s about setting yourself apart. MSPs that invest in procurement transformation today will be the ones leading the market tomorrow.

So here’s the question, are you still submitting orders by email—or are you building a procurement engine designed for scale?