How Does A Cloud-Based Procurement Management System Work?

process of Cloud-Based Procurement Management System

With the eventual extinction of manual procurement, cloud-based procurement management systems’ importance is becoming ever more evident. However, many chief procurement executives are hesitant to adopt these systems at first glance because they appear to be not very intuitive to work with. That, however, is an outright mistaken perception.

How Does A Cloud-Based Procurement Management System Work

The Basics of a Cloud-Based Procurement System

A cloud procurement system empowers you to streamline every step of the source-to-pay process, from simplifying and automating the buying experience to ensuring compliance and controlling costs.

Cloud-based procurement systems provide you with dashboard capabilities that allow you to specify and monitor key procurement metrics and indicators, such as supplier history and activity, as well as contracts and open purchase orders.

To find a supplier, all you need to do is search for products/services you intend to procure in the search bar. After finding your potential supplier, you will receive instant access to your product catalog.  

Policy Compliance

In terms of policy compliance, you can define customizable rule-based purchase order policies that all procurement personnel should strictly adhere to. Thereby gaining real-time spend insight, monitor spend trends, and detect process inefficiencies.

With invoice tools, you can connect invoices to contracts, GRNs, Pos, as well as monitor sales tax and discount rates and see shipping/handling cost charts. These systems help you to access vendor information and multilingual catalogs instantly. You can also use comprehensive vendor ratings for future references based on metrics such as delivery speed, product quality, price competitiveness, and compliance.

Bottom Line

Considering the tools and monitoring capabilities cloud-based procurement management systems provide, they are the single most crucial factor determining whether an organization can ride the fourth industrial revolution’s breaking waves or get bogged down in the quagmire of hesitancy.

If you require further information, please contact us today. We would be delighted to help you get the efficient cloud-based procurement management system you need. 

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Frequently Asked Questions

Penny is a cloud-based Procure-To-Pay system. penny helps you digitize and manage your full procurement cycle from request to approval. Manage RFQs to vendors, compare quotations, send POs and even payment. penny was designed to make things easy and consolidate all of your organization’s spending needs into one intelligent system.

  • Allocate, manage and monitor budgets by expense accounts, projects, departments, location, teams..etc 
  • Streamlining procurement means requests, approvals, and POs won’t be lost in emails or offline.  
  • History and records of requests and purchases can be extracted and tracked easily via the platform. 
  • Product requests are more accurate through the catalog, and hence avoid purchasing mistakes.
  • Reports and analysis can be extracted from the platform, giving you a consolidated data center for all your procurement activities.
  • penny is cloud-based and an easy to use platform. The action-board gives your team a user-friendly and simple experience.

Yes, penny is designed to handle complex procurement operations. We make EVERYTHING simple. Via the contract management feature, you can set the terms and conditions of your contract, and the system will recognize the products and the vendors of your request and match it with specified terms of your contract. Easy.

Putting you in control of your spending is integral to our mission. penny allows you to create Expense Accounts that match your P&L, and assign budgets to them. For example, you can assign $X for your “Travel Budget” and reflect on the budget before approving a travel request. In addition, penny allows you to set budgets for cost centers like projects, departments, locations, and so much more. With penny, you can extract reports and view your spend per Expense Accounts or cost center.

Yes. If your product search finds no results, you can submit a non-standard request.

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