Procurement Management in the Age of E-Commerce

Procurement software

The growing role of technology in our world has dramatically expanded global connectivity and day-to-day commerce. In recent years, E-commerce has become such an established part of any business.

Nowadays, a company can take advantage of cloud-based procurement management systems to easily communicate, place bids and fulfil purchase orders. However, the growing prevalence of cloud-based procurement management systems suggests that the benefits go beyond these points.

In this article, we’ll discuss how E-commerce has shaped modern procurement management:

Procurement Management in E-Commerce

Transparency & Visibility

Many internal/external stakeholders have access to a centralized pool of information with cloud-based procurement management systems. That way, they can keep track of the approval process and identify areas they can improve on. Moreover, they can easily monitor resource allocation vis a vis every part of the operation and detect any off-contract spending.

Related Article: Why Automated Digital Sourcing Will Become Your New Best Friend

Budget Management

Budget management is the pillar of every operation. With traditional procurement management, all budget planning is conducted manually or in spreadsheets, not immune from error. Thanks to built-in monitoring tools, procurement management systems keep track of available funds to prevent users from going over budget. Plus, these systems allow budgeting at every project level, giving users more freedom to adjust their budgeting requirements.

Streamlined Communications

A great deal of time is wasted in communication with external suppliers. Cloud-based procurement management systems help streamline the entire cycle by allowing all parties to continuously monitor available goods, prices, order progress, and any potential diversion from the agreement.

Bottom Line

The growth of E-commerce has extensively changed procurement management, often for the better. The above is just a thumbnail sketch of modern cloud-based procurement management systems.

Supplier and document management, order fulfilment, and inventory control are the general functions of such a system.

We help you narrow down your search to the perfect procurement management solution! There are solutions such as Penny’s E-Source that digitize your sourcing and maximize your savings, specifically tailored to your operational needs.



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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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