Cloud-Based Procurement: What You Need to Know

The days of lost invoices and rogue receipts are finally behind us. New technologies have ushered in a new era of procurement, which is based on cloud technology. While there are plenty of reasons why a shift to cloud-based procurement is beneficial for your business. In particular, the most prominent is accessibility and organization of the procurement process itself.

If you’re unfamiliar with cloud computing, don’t worry. The cloud, in its simplest form, provides the ability and access to store data and programs via the internet, rather than downloading it to your computer’s hard drive. Essentially, this means that if you have an internet connection, you can access the information on the cloud anytime and from anywhere.

While implementing the cloud across business operations is definitely more complex than using the cloud as a single user, the organization of cloud services is becoming easier to understand and navigate.

Most cloud-computing services fall into one of three general categories. There is the ability to subscribe to and access a service over the internet with Software-as-a-Service (SaaS) platforms like Salesforce. There is an option to create a custom application that your entire business uses with Platform-as-a-Service (PaaS). Then, there is the option to utilize the structure built by companies like Amazon, Microsoft and Google via Infastruce-as-a-Service (IaaS). One example PCMag gives of IaaS is Netflix, who uses Amazon’s cloud platform to run their service.

In terms of procurement, usage of the cloud allows for total control and oversight of services spending. With certain procurement cloud services, businesses can efficiently handle the process of requisitioning, sourcing, procuring and handling payments for services, modernizing your business’ procurement services.

Modern procurement via the cloud allows for an effective and organized system that will help you to keep your business costs under control, select the best suppliers, enforce company policy and appraise supplier risk. In addition, you are able to decrease the overall amount of manual transactions throughout the entirety of the procure-to-pay cycle, which tends to be time consuming. Cloud procurement systems allow you to create purchase orders, weigh contract negotiated prices and terms, manage revisions to documents, and process non-manual supplier invoices.

By allowing employees access to your business’s cloud-based procurement system, you are allowing for a cohesive space, where everyone is able to get what they need, while allowing their actions to be monitored according to company policy.

Direct benefits of cloud-based procurement include allowing employees to make their own purchases and the ability to control spend as employees utilize approved suppliers. Ensuring that your employees have access to a user-friendly platform makes for a better experience all around, ensures compliance, reduces unnecessary spending and helps your business to achieve cost savings.   

At Procurify, the vision is to centralize all communication related to spending in one user-friendly platform. This means that everyone is able to stay in the loop and important details aren’t lost or forgotten. In addition, the Procurify mobile app allows for the convenience tracking on the go. Not only is there complete cloud access via the internet, but the addition of a mobile-friendly platform adds a whole other level of cloud-based accessibility.

In addition to high levels of accessibility, the cloud fosters a feeling of transparency between management and other team members. Through the Procurify platform, your employees can see the status of their requests throughout the requisition process and are notified of changes instantly.

With these features, it is easy to see why cloud-based platforms are the new standard of business procurement. Allowing employees access from anywhere and anytime, and in some cases on any device, not only creates transparency from high level executives, but also a more intuitive and organized way to streamline supply chain interactions and your company’s spend culture.

Amanda is a contributor to Enlightened Digital and a software engineer from New York City. When she is not trying to find the best record store in the city, you can find her curling up to watch some Netflix with her Puggle, Hendrix.

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