Things to Look for in a Procurement Optimization Solution

Aspects of procurement management

A practical procurement optimization solution can help you manage the entire procurement experience with minimum hurdles. However, you cannot find the right solution without knowing what to look for. To help you with that search, we’ve listed some of the must-haves for a reliable procurement optimization solution.

Procurement optimization

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Automation

This is the crux of modern business tools. If they aren’t going to relieve you of some of the most tedious tasks, they aren’t worth your time. A process for managing orders, receiving clearances from executives, and simplified tracking should all be included in such solutions. Essentially, a successful solution should eliminate all of the unpleasant aspects of procurement management. 

Budget Management

Besides handling payments, one of the most critical aspects of procurement is reporting. You must continuously monitor your spending with every vendor to cut down the costs without compromising your operation.

So, if you plan on buying a tool, it should be clearly better than your old Excel sheet in all of these areas. Look for solutions that can track expenses in real-time, break down each team’s budget, and compare spending patterns to past times.

Most importantly, ensure that you can obtain these items without needing to adjust data yourself. It should be simple to use and accessible anytime you need it. 

Order Approval

When a company starts to spend money, someone must be held accountable. In many firms, supervisory permission typically involves an email chain that must be checked after every purchase.

A reliable procurement optimization solution will impose limitations on who may spend and how much they can spend. If it’s a supervisor or executive, you may not need to ask any questions. However, when a low-tier employee places an order, the solution should automatically notify the respective authority and get the approval before going to the next step.  

Integration & Collaboration

Procurement, in general, isn’t all that difficult. Making a transaction is simple if you have a reliable source and know exactly what you want. However, it becomes more difficult if you wish to involve others in the process.

Your coworkers don’t have the same level of procurement experience or knowledge as you. They’re also reluctant to read the entire handbook or participate in a lengthy onboarding process only to make several payments.

You need a solution that will guide them through each transaction in a way that is compliant with policy and does not overcomplicate things.

Bottom Line

There are numerous tools on the market, each with its own set of benefits and drawbacks. Some may not be available for your location or may be way too expensive for you. As a result, you’ll almost probably have to shop about. Nevertheless, it’s critical to understand precisely what you need. You need a reliable procurement optimization solution fitting your budget and operational goals. That’s exactly what you can find at Penny. Just contact us and find a wide range of solutions that meet your needs.

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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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