What’s An E-Procurement Service Provider?

procurement service provider

Most procurement teams are currently fighting to keep up with rising market volatility and maintain a competitive advantage. However, the majority of businesses are still utilizing older, legacy ERP systems, which are falling behind the competition.

On the other hand, e-procurement service providers on the market help companies across various industries meet their policy requirements, scale, and grow. Of course, some business owners are still unsure how an e-procurement service provider can help them. We’ll provide the answer right here in this article. 

Photo by Campaign Creators on Unsplash 

1. Infrastructure

When it comes to adopting e-procurement solutions, lots of companies tend to opt for an in-house operation in the hopes of saving money and time. However, they don’t realize they need to set up the infrastructure and equipment necessary for the whole thing to work. Needless to say, that takes a lot of resources, effort, and time. This is where an e-procurement service provider comes in and offers all of that at a drastically lower price. 

2. Expertise

Even if companies manage to successfully establish, test, and try their infrastructure, they still need to either train their existing team or bring external professionals. The first approach will cost a lot of money and time to train people who already have plenty on their plates. The second approach will also prove expensive because these experts need to be present continuously. Again, an e-procurement service provider can solve all of those problems at once by offering a reliable e-procurement solution that works 24/7. 

3. Risk Management

Procurement managers struggle to figure out how to manage costs and reduce risks while dealing with an old-fashioned procurement system.

Teams must abandon outmoded, manual processes that lack the authority and control necessary to generate efficient cost reductions to address this issue.

For many, the pandemic has been a massive issue. It has put many companies in jeopardy, with a lot of firms having gone out of business.

4. Avoid Invoicing Errors

One of the most difficult tasks in the procurement process is matching an invoice with the supporting documents. An invoice’s details and specifications must match those on the customer order and the receipt note.

Furthermore, the invoice’s descriptions and per-unit price must match the customer order and the actual items delivered. While three-way matching can be done manually, an e-procurement solution can automate the entire process and save a lot of money and time.

Bottom Line

As noted before, today’s high-tech market leaves players no choice but to either be left behind or keep up with the flow by using automated e-procurement solutions. That’s what e-procurement service providers like Penny can accomplish for you and any other business. All you need to do is to contact us and let us provide a tailored solution that perfectly fits your budget and objectives.



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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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