Procure-to-pay solutions integrate accounts and purchase payable systems to create greater efficiencies in online purchase processes. The procure-to-pay process exists in the larger procurement management and planning and broadly entails four main stages: selection of goods and services, enforcement of order and compliance, receiving goods and reconciliation; payment, and invoicing.
The emergence of the cloud as a frontier in P2P solutions enables organizations to be more agile. Cloud-based procure-to-pay solutions are growing in popularity because of the benefits they extend to end-users. Credible research shows that 36% of organizations leverage some form of software as a service (Saas) and plan to continue investing in new software; 44% of organizations are implementing and improving their investments. In addition, 73% of organizations indicate all their apps will be SaaS supported by the end of 2021.
With these developments, we can expect that the adoption of pioneering tech payment solutions will rise in the foreseeable future. A special part of this new implementation includes the procure-to-pay solutions. So, what unique benefits does the cloud-based procure-to-pay solution offer?
Let’s delve deep.
Benefits of a Cloud-based Procure to Pay Solution
1. Up to Date
You don’t have to worry about manually running software updates if you have an ERP system that handles all your cloud-based software. This ERP system, combined with a cloud-based suite of software, saves you money in terms of needing to hire a dedicated team of IT staff to handle your routine activities. It is with no doubt that when your software is up-to-date, there is no need to update other software, apply patches, upgrade hardware, and troubleshoot errors.
For small and medium-sized enterprises on a budget, maintaining on-premise equipment and paying a dedicated IT team is often cost-prohibitive. Cloud-based systems extend affordable options, allowing businesses to operate as usual. The technology-powered procure-to-pay solutions provide enterprises with data insights, allowing them to draw meaningful purchase and procurement insights. This, in the long-term, is cost-effective to enterprises struggling to break even or make a profit.
3. End to End Integration
Packaged procurement software is often a disconnected code that stands apart from other procure-to-pay tools. Nowadays, nearly all SaaS platforms offer seamless integration through application programming interfaces API. This end-to-end integration afforded by cloud-based procurement software eliminates manual intervention, data redundancy, and offers a single source of the truth without any errors or frictions.
Technology Acceptance Model posits that ease of use is an overriding factor in the adoption of any new technology. This is no different for cloud-based procure-to-pay solutions. The user-friendliness of automated procurement solutions like ProcurePort is one of its greatest advantages. Cloud procurement tools enable enterprises to meet evolving market needs without needing an expensive upgrade.
The flexible nature of procure-to-pay solutions offers a faster time-to-market by reducing the time required to implement and tailor a particular product. Depending on their requirements, enterprises can either scale subscriptions down and up with the available cloud-based P2P solutions.
5. Easy Collaborations
The cloud-based P2P software allows the accounts payable department to work seamlessly with other departments, including the procurement department, regardless of where they are located. Albeit it may seem a bit risky to leave all that to someone else, the benefits of the procure-to-pay solutions are worth it.
The updates and patches are automatically applied, allowing the enterprise to run smoothly without frictions or costly interruptions. There is evidence that a lot of the high-profile data breaches we’ve witnessed in the past are a result of delayed patchwork deployment. Many procure-to-pay solutions and SaaS software are hosted in platforms like Microsoft Azure, thus ensuring maximum security.
6. Flexible Functionality
The cloud-based procure-to-pay solutions are hosted by credible platforms, and operate seamlessly. The presence of automatic patchwork deployment and 24/7 monitoring guarantees world-class flexibility particularly in routine business activities: sales, procurement, reconciliation, billing, and invoicing. The premise of SaaS solutions is to offer flexibility to small enterprises willing to scale.
Therefore, if your enterprise needs change, you can adjust your database use and transaction volumes according to your new requirements. In addition, it is possible to integrate your in-house enterprise applications with SaaS software to create workflow efficiency.
ProcurePort, for instance, allows you to add user licenses on an ongoing basis so that you may be able to add new staff as your business grows. Further, ProcurePort supports other business application integrations, providing much-needed flexibility in your routine business operations. The platform integrates with the QuickBooks system, one of the commonly used finance software.
How Will Cloud-Based Procure-to-Pay Solutions Help Your Organization?
- Approval workflow – With a digital platform that is accessible anytime and anywhere there is an internet connection, it is easy to set up a clear approval workflow.
- AP automation – The automation of the accounts payable ensures timely payments, reduces errors, saves time, and ensures the correct payments.
- Spend management – The cloud-based procure-to-pay solutions provide spend analysis, especially when organizations have a clear record of their transactions. In addition, by requiring all users to start with a purchase requisition and send it to approval before it attains the status of a purchase order, it is possible to avoid purchasing from unapproved vendors.
- Spend analysis – The procure-to-pay tools offer built-in reporting features, offering the ability to automate and customize reporting, thus saving time when doing spend analysis.
- Contract management – Opting for a SaaS procure-to-pay solution allows for better contract management. ProcurePort allows you to attach a contract or any other important information or document to each vendor so that anyone who wants to review can do so at their discretion. This ensures that both the business and the vendor comply with all the contract terms.
ProcurePort – Your One-Stop Shop For Procure-to-Pay Solutions
The SaaS cloud-based P2P solutions continue to open new opportunities for business efficiency and scalability. The P2P solution extends special capabilities like supplier management where organizations with multiple suppliers can manage them across the supply chain. These solutions lead to improved supplier relationships by fulfilling orders and managing transactions in a timely fashion. You can now leverage ProcurePort for all your procurement management and planning needs.