How Does Cloud Based Procurement Work?
The modern business world’s move towards digital technology has produced several buzzwords over the years. One of the most-used is “the cloud”. But what exactly is “the cloud”? Simply put, the cloud is the ability to access data and applications using the internet, without the need for said data and apps to be installed on any hardware. This has all kinds of efficiency and convenience implications, as it essentially means that you are able to access and retrieve any information that you may need from your organization’s systems, as long as you have an internet connection – even on your phone! This is key to understanding how modern digital transformations are taking place.
However, a common theme in organizations today is the stubborn existence of outdated legacy procurement systems. Even organizations that embrace digital transformation as a whole are often left wondering how to modernize their procurement systems. This is due in part to the fact that the technological advances across the operations landscape has far too often left procurement behind as an unfancied, laborious process that is difficult to digitize and upgrade. That being said, cloud-procurement solutions are out there, and implementing one is key to driving business value, supplier relationship management, contract lifecycle management, streamlining the P2P process and ensuring a host of other value-drivers.. As an expert in cloud procurement technologies and the supply chain, SCP has worked with many organizations locally and globally just like yours over the years, making a success of updating slow, unwieldy, and manual systems to highly efficient, value-producing machines. Let’s take a look at exactly what a cloud based procurement solution is.
What Is Cloud-Based Procurement?
Cloud based procurement utilizes the cloud to store, sort, retrieve, and analyze data. It provides you with a single dashboard with unparalleled visibility of your procurement processes, simplifying cost reduction, assessing supplier risk, and ensuring compliance across the board. With individual teams’ access to a cloud based procurement solution, they are able to make purchasing decisions independently – creating orders and requests through pre-approved suppliers. Your days of rogue receipts, Maverick spend and missing invoices are over!
How Does Cloud Based Procurement Work?
Instead of your procurement team manually compiling, filing, and analyzing the documents involved in your procurement processes, a cloud based procurement solution does this automatically. With a set of pre-configured instructions for the system, requests can be processed digitally and automatically stored where everyone has easy and instant access to them. The speed of information between departments is hugely improved, removing the need to wait for days on end while an unknown employee decides whether to approve your time-sensitive request. The system, taking into account your organization’s compliance rules, spend limits, and approved suppliers, does this automatically. It also displays the status of all requests to any person at any time, eliminating confusion and increasing cohesion.
Why Do Businesses Need Cloud Based Procurement?
As your procurement teams transition from a primarily cost-saving team to one that is expected to produce tangible business value, a cloud-based procurement system saves them time and effort by automating menial tasks. As a decision maker in your organization, you know how valuable saved time is for your employees, and a cloud based procurement system can free them up to unlock the growth potential inherent in your organization.
A cloud based procurement platform also carries benefits for your procurement processes. With a central storage point, it provides end-to-end visibility of the entire P2P process, identifying weak points and helping you to address potential challenges before they arise. In addition, the accessibility of documents and data improves relationships and cohesion between previously disparate teams and departments in your organization, allowing them to develop new synergies. The ability to scale also means that cloud based systems are cost-effective, as you do not need to install a huge ERP-related system, but can instead use a pay-per-use platform that caters to the individual needs of your organization.
SCP is a longtime expert in cloud-based procurement solutions, and our early adoption of technology means that we are well positioned to provide you with all the assistance you need to transition to a high-powered digital platform. With our deep industry expertise and boots on the ground, implementing a cloud-based procurement system has never been easier.