Transitioning to a Cloud-based Procurement System: How to Prepare Your Business

cloud based procurement

The days of misplaced invoices and erroneous receipts are finally over. New technologies have brought in a new era of procurement, one that is cloud-based. There are numerous reasons why switching to cloud-based procurement is advantageous to your company.

You surely have read article after article about the benefits of cloud-based procurement for businesses. But, there’s a good chance that you may have overlooked a key fact. The success of an e-procurement solution in your business depends on you providing fertile grounds. In other words, you need to prepare your business for this significant transformation in order to reap its rewards.

Considering these seven points will definitely help.

Photo by SOULSANA on Unsplash 

Seven Key Considerations

While there could be other items on this list, we decided to explore the ones below briefly.

  • Data security and privacy. Determine the level of protection for all sorts of data and your privacy requirements. The e-procurement provider must be able to fulfill your particular security needs.
  • Resilience. Assess the data’s security levels and how it’s guarded while it’s being transferred. Examine the hosting provider’s credentials and find out how often they do pen-testing.
  • Continuous Monitoring and testing. Make sure you understand how a possible supplier checks their infrastructure and where your systems will be hosted. 
  • Compatibility. The e-procurement supplier must be able to provide a solution that’s compatible with your preferred networks.
  • Backup Requirements. What method do you use to back up your operational environment? If you require it in a different area, you’ll need a provider who has many data centers.
  • A systematic approach. Test out cloud services. Before completing the whole shift to the cloud platform, host some data elsewhere.
  • Exit strategy. How can you retrieve the data once the contract expires? What happens if you decide to switch vendors? Make sure to consider this at the start of going towards the e-procurement process.

Bottom Line

With such benefits, it’s simple to see why cloud-based solutions are a popular procurement strategy among businesses. 

Having access to real-time data across all aspects of the operation transparency from high-level executives is achieved by allowing team members access from anywhere and at any time.

It’s also a more user-friendly and organised solution to streamline supply chain exchanges and the company’s spending culture. 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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