Cloud Procurement – the Future of Purchasing

Operation costs, maintenance costs, service and software updates can all add up in the grand scheme of things. Failing to account for procurement costs can be destructive to your businesses ability to be effective. However even with a strong e-­procurement system, how the software operates and navigates operational costs is still the deciding factor when choosing a software provider.

There are a couple important factors when considering a cloud procurement system. The first one involves ease of use. How easy will it be for your users to use the new e-procurement system? Will they need new software or hardware to optimally run the software? If you can answer these questions with a yes, there’s a good chance that your new cloud-based e-procurement system will be a productive asset. The second factor to consider is acceptance of new processes by users and suppliers. It’s one thing to provide easy to use new software, it’s another thing entirely to have your users and suppliers accept using a process. It’s not uncommon for employees to be opposed to change.

On the basis of various case studies we can demonstrate that:

  1. Cloud Procurement, is the most economical form of using software in procurement.
  2. Cloud software ensures a global availability of 24/7
  3. Cloud-­‐based procurement leads to quick implementation times. Procurement processes run between customers and suppliers, companies and subsidiaries.

These processes occur worldwide, 24 hours a day, 7 days a week. Purchasing as the interface between suppliers and product developers assumes an increasingly central role within companies. Therefore it is advantageous to avail oneself of a centrally provided infrastructure (hardware, software, content, services) with regard to process management.