Components Of Cloud Based Procurement Software

In today’s market, it’s almost impossible for businesses to survive without using tech tools in every aspect of their operation. It’s not unreasonable to think that a considerable fraction of all business data and activities will move over to the cloud. A prime example is the integration of cloud-based procurement software, which leverages the power of the cloud to improve communication, simplify, and automate the entire operation cycle.

Of course, you may be curious about what factors contribute to making this happen. To help answer that question, here below we’ll discuss the components of cloud-based procurement systems.

Components Of Cloud Based Procurement Software

One of the main concerns of people on both sides of the supply chain is that the number of essential components in cloud-based solutions is less than those of traditional systems. But, there’s no need to worry because cloud procurement platforms have essentially integrated all of those features into a unified, low-cost system. In other words, all the elements are still in there but in a much simpler and more efficient format. 

Cloud procurement platforms allow businesses to shift from large complex tech systems to simpler solutions, far more user-friendly and efficient. Storing data and analytics in the cloud rather than physical drives provides effortless access to data and requires little to no maintenance. It’s the components that make them into budget-friendly and time-saving solutions. Here they are:

Cost Analysis Using Cloud Based Procurement Software

Since all data is stored on a central, easy-access source, cloud procurement solutions can collect, classify, monitor, and analyze data on expenditures. By doing so, they can easily find areas where you can lower costs and boost the system’s performance. 

Request For Quotation (RFQ)

No procurement solution is complete without an accurate and efficient mechanism to request quotes. By providing transparent information to all buyers and suppliers, cloud procurement solutions get everyone on the same page and avoid confusion. 

Procurement Auction

Cloud procurement solutions provide features that reverse the role of buyers and suppliers, giving buyers enough leverage to lower the cost of purchase even further. Instead of several buyers competing for the services of one supplier, several suppliers lower the price of their services to acquire business from a buyer. This is also called “e-bidding”.  

Invoice & Purchase Order Automation

Nowadays, buyers and suppliers may contact each other from any part of the world, utilizing multiple devices. Cloud procurement solutions help them easily send invoices and purchase orders from any device, shortening the purchase cycle and improving order fulfilment. 

Bottom Line

Cloud-based technology is no longer new. It’s expected that cloud-based procurement systems will become the standard solution for all procurement-related matters. Hence, people on both ends of the supply chain must understand their components and benefits and start buying into the new tech as soon as possible.

Of course, as nothing stays the same in the market, they need a flexible solution to help them keep up with changing customer demands. We at Penny offer exactly such a system in line with your budget and needs. All you have to do is contact us, and we’ll get you ready to go. 



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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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