Top Essential Capabilities for Cloud-Based Procurement System

Top Essential Capabilities An Efficient Cloud-Based Procurement System Can Offer

Procurement plays a vital role in every step of the operation cycle. Without a reliable procurement solution, a business may lose control and compromise its relationship with buyers and suppliers.  Moreover, all companies need to keep up with the constant demand changes in the market. That’s why so many have shifted towards using cloud-based procurement solutions. If you’re not clear about the capabilities of a cloud-based procurement system, keep reading.

What’s Cloud-Based Procurement?

Cloud-based procurement solutions automate every aspect of the procurement cycle, from supplier management and internal communication to purchase orders and invoice management. 

Compared to on-premise solutions that usually require human intervention, cloud-based procurement reduces the error rate to near zero, operates 24/7, and simultaneously manages multiple tasks at once.

Cloud-Based Procurement Capabilities 

Here below, we’ll briefly discuss the specific capabilities of a cloudbased procurement system.

1. Paperless Procurement

Manual procurement processes require staff to deal with piles of paper, phone calls, and have an in-person conversation. In addition to wasting a significant portion of their budget and time, manual procurement compromises their financial success, hinders decision-making, and increases the error rate.

Cloud-based procurement moves all of these processes into a unified digital platform, speeding up the process and minimizing client complaints. Plus, by automating all aspects of procurement, there’s almost no need for human intervention, saving time and money.

2. Fluid Communication

Among the common complaints about manual procurement is that the siloed data infrastructure doesn’t allow departments to communicate easily. Reduced data access, frequent inaccuracies, and delayed approvals are only some of the issues with on-premise solutions. 

Cloud-based procurement breaks down all of those silos and gathers all the data in central storage. In addition to providing real-time communication, it also enables staff to access information, regardless of time and/or location.

3. Managing Relationship With Suppliers

Depending on the industry, businesses may work with a wide range of suppliers across the supply chain. Without an automated system, the burden of managing supplier relationships falls very much on the shoulders of the staff, who should be focusing on generating revenue for the company, among other vital tasks. 

Cloud-based procurement enables businesses to identify the most effective suppliers within the system and those that aren’t meeting expectations. Furthermore, it helps monitor all orders with the supplier and provides data that’ll come in handy in negotiations for a new deal.

Bottom Line

With the rapid pace of business in today’s tech-driven market, traditional procurement is a luxury hardly anyone can afford. Seamless data integration, fluid communication, paperless operation, and end-to-end automation are only some of the reasons for utilizing cloud-based procurement.With the wide range of cloud-based systems on the market, you should be looking for a solution that’s affordable and flexible enough to fit your budget and performance. We at Penny give you all of these benefits and more to put you on a fast track to success. Hence, don’t overthink it and please contact us right now.

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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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