Data & Analytics, Cores of a Cloud-Based Procurement System

Procurement software

Procurement departments can access, manage, and sort through a wealth of essential data in their day-to-day operations. Still, not many can capture all this information, let alone make it into something meaningful.

Unlike traditional procurement systems, data is a key to survival in the modern market. Today, businesses utilize a data-driven procurement system to solve problems, extract more value from their procurement process, and so forth.

However, they require a method to make sense of their data toward having a meaningful impact on their performance: Analytics. In this article, we’ll discuss the value of data & analytics in procurement management and why a data-driven procurement management system is a vital piece of the puzzle.

Cores of a Cloud-Based Procurement System

How Does it All Tie Together

Data is power for all procurement departments. Historical data on vendors, spending patterns, and prices can improve their bargaining position and push for better pricing. They can also determine the time to generate purchase orders, the level of regulatory compliance, and planned vs. actual spending.

Contact details, service quotes, product information, and order fulfillment time are valuable supplier data to keep their operation running smoothly. Simultaneously, it’s required to place the data in a helpful form for it to make any sense, hence, a categorization system.

Data classification needs to be consistent, accurate, and detailed enough to make analysis less complicated. For example, a broad categorization of office equipment spending isn’t sufficient. You need a clear breakdown regarding marketing, research, printing supplies, and even kitchen supplies.

Leaving categorization to manual labor will be highly inconsistent, even nearly impossible. Once all of that data is gathered, analytics will tie it all together. A data-driven procurement system will utilize analytic techniques to detect complex data patterns, query data sets, and cluster data based on statistically significant price drivers. That will give the business a clear view of vendor and supplier performance.

Unlike manual analysis, a data-driven procurement management system doesn’t base its decision on gut feelings or places too much emphasis on data outliers and does so with a speed that always beats traditional methods.

Bottom Line

As businesses become ever more reliant on data-driven procurement systems, an enterprise can stay on top of its operation by investing in a flexible solution to streamline every facet of the procurement process. Penny offers multiple customizable, quality cloud-based procurement systems to make data gathering and analysis easier. To find out more about our services and quotes, please contact us.



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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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