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Cloud-Based Procurement: Key Features and Benefits
Cloud-based procurement can assist you in monitoring the entire purchasing cycle. It reveals who is initiating the purchase of which item, when and why.
Fremont, CA: It's no secret that procuring is a complex process to manage. As a result, visibility becomes increasingly hazy, resulting in a broader loss of control, sometimes exacerbated by misunderstandings between purchasing organizations and the various suppliers.
Digitization of Paper-Based Procurement
A company's procurement function is typically handled manually, relying heavily on paperwork, phone calls, and in-person conversations.
Moving procurement processes to a unified, digital platform streamlines and speeds up all procurement activities, creating opportunities to generate more value and savings in the procurement process. It also saves time and labor costs associated with manually processing large amounts of data. A cloud-based procure-to-pay solution reduces friction by automating the process. Documents in electronic format are available to clients and suppliers in remote locations.
Accessibility and Collaboration Ease
You can make information easily accessible and available to approved individuals, regardless of their location or time, with the help of cloud-based procurement software. Cloud-based solutions, as opposed to on-premise software options, enable a more collaborative working environment and a continuous flow of information across departmental boundaries.
Cloud-based procurement can assist you in monitoring the entire purchasing cycle. It reveals who is initiating the purchase of which item, when and why. It also shortens the time it takes to complete the procurement process by informing you of the status of the hierarchical approval process and sending reminders and emails to the individual or department responsible for the delay.
The Influence of E-invoicing
When a vendor sends an E-invoice, it makes it easier for the account payable department to match it against the goods receivable note (GRN) and purchase order (PO). Payments to the vendor are processed on time due to the efficient three-way matching process.
Use Technology to Overcome Policy-Related Obstacles
Procurement entities must exercise caution regarding regulations to avoid bureaucratic red tape. Rule-breakers frequently hamper procurement strategies. For example, employees occasionally go rogue and make purchases outside of permitted processes because there is no technology in place to organize and manage to spend. By requiring employees to follow a process and stick to a budget, automation can help reduce tail spending.
You can save time by using built-in reporting tools, such as modifying and automating reports when performing spend analysis. Furthermore, spend analysis enables businesses to understand the prices of products and services better.