Can E-Procurement Help Small Businesses Thrive?

The golden rule of survival in any kind of business is to reduce costs and streamline the operation cycle. Hence, many business leaders are utilizing various forms of technology to achieve this objective. One of these tools is e-procurement, becoming quite popular in recent years.

Despite its widespread adoption, some are unsure of how e-procurement software can help small businesses thrive. This article will discuss how e-procurement and small businesses fit well together to create success and sustained growth. 


How E-procurement Helps Small Businesses Grow

If we were to list all the effects of an e-procurement platform on small businesses, it would be a long one indeed. But, for the sake of brevity, we’ll only focus on five elements. An e-procurement platform helps small businesses grow faster by resolving each of the following. 

1. Transparent Information Flow 

Small-sized companies regularly struggle with consistent growth in the short run. In the first couple of years, dozens or hundreds of employees join the founders to help move the company forward. That’s when a company’s procurement transparency becomes an issue since they don’t have the infrastructure and tools to help people in different departments communicate their various purchase requirements. 

This is where an e-procurement platform can seamlessly integrate all of those siloed data structures and allow the information to flow effortlessly throughout the organization. 

2. Saving Time 

In the beginning, small companies are focused on generating sales and growing the business, not operational support. With most of the staff working on sales, the business cannot afford to hire a big procurement support team. Instead, they can utilize an e-procurement system to automate the entire operation cycle and support procurement teams with ready-made reports and templates. 

3. Accessing Various Suppliers

Having access to various suppliers plays an essential role in saving money and time. E-procurement systems provide companies with a reliable supplier database, allowing small businesses to easily reach out to new suppliers and review their performance. This is a particular advantage for small businesses because usually, large corporations don’t have the flexibility to use this form of sourcing 

4. Cost Analysis 

Cost analysis is another part of the operation cycle able to be streamlined with e-procurement software that provides a report module. The solution will produce all the reliable data sources for the company to design their strategy. Cost analysis is critical for all small businesses where the cost of everything must be monitored and checked constantly. 

Bottom Line

When it comes to e-procurement and small businesses, each business and industry is different and comes with unique requirements. However, in most instances, businesses need a transparent flow of information and access to various suppliers. Moreover, it’s a requisite to monitor their resources and save as much as possible on time, money, and expertise.

Therefore, it appears e-procurement software can greatly benefit small businesses in the short and the long run. However, since things are constantly changing in today’s market, companies need flexible solutions to their procurement issues.Fortunately, we at Penny offer a wide range of solutions that can precisely fit your needs and budget. Please don’t hesitate to contact us as our team of experts is waiting and ready to find you the perfect e-procurement software.



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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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