Procurement plays a vital role in every step of the operation cycle. Without a reliable procurement solution, a business may lose control and compromise its relationship with buyers and suppliers.
Moreover, all companies need to keep up with the constant demand changes in the market. That’s why so many have shifted towards using cloud-based procurement solutions. If you’re not clear about the capabilities of a cloud-based procurement system, keep reading.
What’s Cloud-Based Procurement?
Cloud-based procurement solutions automate every aspect of the procurement cycle, from supplier management and internal communication to purchase orders and invoice management.
Compared to on-premise solutions that usually require human intervention, cloud-based procurement reduces the error rate to near zero, operates 24/7, and simultaneously manages multiple tasks at once.
Cloud-Based Procurement Capabilities
Here below, we’ll briefly discuss the specific capabilities of a cloud-based procurement system.
1. Paperless Procurement
Manual procurement processes require staff to deal with piles of paper, phone calls, and have an in-person conversation. In addition to wasting a significant portion of their budget and time, manual procurement compromises their financial success, hinders decision-making, and increases the error rate.
Cloud-based procurement moves all of these processes into a unified digital platform, speeding up the process and minimizing client complaints. Plus, by automating all aspects of procurement, there’s almost no need for human intervention, saving time and money.
2. Fluid Communication
Among the common complaints about manual procurement is that the siloed data infrastructure doesn’t allow departments to communicate easily. Reduced data access, frequent inaccuracies, and delayed approvals are only some of the issues with on-premise solutions.
Cloud-based procurement breaks down all of those silos and gathers all the data in central storage. In addition to providing real-time communication, it also enables staff to access information, regardless of time and/or location.
3. Managing Relationship With Suppliers
Depending on the industry, businesses may work with a wide range of suppliers across the supply chain. Without an automated system, the burden of managing supplier relationships falls very much on the shoulders of the staff, who should be focusing on generating revenue for the company, among other vital tasks.
Cloud-based procurement enables businesses to identify the most effective suppliers within the system and those that aren’t meeting expectations. Furthermore, it helps monitor all orders with the supplier and provides data that’ll come in handy in negotiations for a new deal.
With the rapid pace of business in today’s tech-driven market, traditional procurement is a luxury hardly anyone can afford. Seamless data integration, fluid communication, paperless operation, and end-to-end automation are only some of the reasons for utilizing cloud-based procurement.With the wide range of cloud-based systems on the market, you should be looking for a solution that’s affordable and flexible enough to fit your budget and performance. We at Penny give you all of these benefits and more to put you on a fast track to success. Hence, don’t overthink it and please contact us right now.