How to Choose an E-Procurement Service Provider?

How to Choose an eProcurement Service Provider?

E-Procurement has become such an essential part of every business that it requires its own team and strategies.

Inevitably, many SMEs are trying to keep up with the market’s ever-changing expectations and dynamics. In addition, they turn to independent, third-party companies that are known as E-Procurement service providers (PSP).

You can hire these companies in your time of need to supplement or even take over on-site procurement operations. Here’s how to choose one.

how to choose eProcurement service

Photo by Erik Mclean on Unsplash 

1. Define Your Needs

Procurement initiatives are only as good as the people that support them. What are the areas where your existing procurement team falls short? What skills do you lack that would help you greatly improve procurement?

You can better determine the needed talent or skill in prospective hires if you take the time to analyze the strengths and weaknesses of your team. This brings us to the following point. 

2. How Much Do You Want the Provider to Be Involved?

The initial evaluation will help you identify  the type of partnership you want to have with the procurement service provider. Do you want the PSP to simply replace, support, and supplement your current staff, or do you want them to handle all procurement needs?

Regardless of the solution you choose, the next question is whether you’ll continue PSP activities offshore or onshore. 

3. Domestic or Foreign Providers?

For many businesses, outsourcing to another country makes financial sense. Many companies outsource their operations to a procurement service provider in India or China, where labor costs are drastically low. 

Many administrative jobs that can be completed remotely are outsourced to offshore companies. Meanwhile, local procurement service providers manage the practical side of procurement, like sourcing.

Bottom Line

Like any other hiring process, you need to take your time when finding a procurement service provider. The ideal PSP with reasonable costs and enough flexibility to fit your needs and goals can be valuable beyond measure.

If you’re looking for such a procurement service provider, Penny is the right choice for you. Just contact us and let us take care of the rest.



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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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