Why Technology is Vital For Procurement?

why procurement needs technology

Regardless of the size of the company, procurement is a critical component. The procurement process involves coordinating vendors, documents, and finances, among other things. The entire procedure may appear simple, but it is not.

It’s a complicated procedure with plenty of opportunities for inefficiencies to arise. Technology and automation can make handling the purchase process and its intricacies easier. If you don’t know how, keep reading to find out.

Why Technology is Vital For Procurement

Photo by ThisisEngineering RAEng on Unsplash 

1. Saves Time

Technology can help you make the procurement process more efficient and successful By e-procurement, you will save a huge amount of time. Many processes can be automated to eliminate manual labor. This will free up time for your procurement team to work on and manage complicated jobs.

2. Improves Communication

Your company’s procurement procedure involves multiple departments. This implies that there may be misunderstandings. Technology can help you with producing complete e-procurement reports and sharing them with all relevant departments. This will significantly improve transparency and understanding. Therefore, teams will be capable of making rational and productive procurement decisions, which will lead to higher profits.

3. Saves Money

Procurement automation might give you control over the company’s spending. It dramatically improves the process’ transparency. This allows you to rapidly discover faults or inefficiencies, giving you enough time to respond and solve the problems early on to prevent them from turning into huge, costly mistakes.

4. Reduces Errors

The procurement process requires the tracking and monitoring of numerous documents. Manually processing papers increases the risk of human errors and consumes a lot of time and effort.

You can, however, store your records digitally using procurement solutions. You can also ensure that these important documents are kept safe and secure. It’s also a cost-effective approach to keep track of your purchase documentation.

5. Improves Supplier Relationship

When dealing with several suppliers, you must keep accurate records on everything pertaining to each of them. Payments, products, agreements, and contact details are just a few elements that you must track.

It can be difficult to handle such information if your purchase process is not automated. So, with an automated procurement procedure, you can quickly and efficiently streamline this data.

Bottom Line

These are some of the ways you can use technology and automation to optimize your procurement process. Of course, with all the solutions on the market, it may be a bit overwhelming for you to find a reliable and affordable solution. Luckily, Penny has the right solution for your needs and goals. Just contact us and let us take it from here.



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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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