Businesses today have a sizable number of cloud-based procure-to-pay solutions to pick from. The trend towards cloud-based enterprise solutions has gathered pace quickly over the last decade. 36% of organizations today utilize at least one Software-as-a-Service product in their workflow. Cloud-based software allows businesses of all sizes to benefit from complex and sophisticated solutions that help streamline workflow.
The flexibility of the cloud-based solutions is very appealing because more growth capacity is always available. There are no complicated contracts that tie the business to a given package for a fixed period. There are no cancellation penalties to discourage businesses from switching to new vendors. Vendors constantly improve their SaaS products to keep current customers and attract new ones. It’s a more democratized system of service delivery where clients can compare, rate, and recommend what works for them. It becomes possible to develop a strategic sourcing framework.
Here is a breakdown of what your business should expect from a cloud-based procure-to-pay solution.
Clear Workflows and Responsibility Assignment
A cloud-based procure-to-pay solution ensures that responsibilities are clearly assigned. The rights and permissions of users depend on their roles. Vendors do this by design to minimize the likelihood of fraud due to grey areas in responsibility assignment. Requisitions are sent automatically to people supposed to approve them, which speeds up the process of approvals because there is no physical movement of files between offices. There is no need to make calls reminding people to sign off documents on their desks.
Automation of Accounts Payables
A cloud-based P2P solution eases the three-way matching of invoices. The online repository of documents means that invoices can be automatically compared with purchase orders and goods receipts notes. Questionable invoices proceed to an investigation by the relevant authority. This reduces the error rate in invoice handling. The cost of invoice approvals also reduces because the need for human labor is greatly reduced.
Easy Collaboration Between Departments and Staff
For a business that has departments spread in different locations or people working remotely, a cloud-based procure-to-pay solution is ideal. The staff gets to use the same version of the software and data in real-time. People working together, therefore, make faster and more accurate decisions compared to a situation where data synchronization occurs after days or weeks. For instance, an officer who notices an early payment discount opportunity for a creditor can quickly notify their senior about it. The senior officer can quickly sign off on it from wherever they are after verifying it themselves.
The Software is Always Up to Date
SaaS vendors are continually improving their services. They release minor tweaks and improvements on software that clients hardly notice. Over time, these add up and users eventually realize how much the service has evolved after several years. The benefit of this model of software delivery is that all users get the latest version of the software. No effort is required on their part in terms of updates. There is no need to upgrade hardware.
SaaS procure-to-pay service providers rely on world-class cloud storage providers to host their products. This guarantees their clients’ high-grade security which is continually improved to deal with emerging threats. The services themselves also receive security patches constantly. Using cloud-based services means outsourcing maintenance, storage, and security to the service provider. This allows your business to only keep staff directly engaging in the business’s productivity-related tasks.
Better Vendor Contract Management
Cloud-based P2P software allows a business to attach its contracts with various suppliers for easier monitoring. Physical contracts are harder to monitor and can easily be altered. However, when stored electronically, it’s easier to flag any alterations. In fact, it’s possible to renegotiate such contracts such that a record of past versions and newer ones as well are available on record. It’s also possible to set up alarms so that any breaches are flagged. Examples would be an expiration of vendor licenses, unobserved deadlines, and hiked prices. Resolution of issues is much easier when a repository of relevant documents is well kept.
It’s possible to create a portal where your suppliers can submit documents -including their catalogs, and access information relevant to them- such as the status of their invoices. This level of transparency greatly improves your relationship with them. From a business point of view, you will have an updated record of all suppliers’ catalogs and work with those who offer the most favorable terms. The faster payment of invoices due to automation also helps the relationship.
Having a cloud-based record of all transactions enables the business to benefit from analytics tools. The tools can be inbuilt within the P2P software or provided by a third party through the cloud as well. The business can quickly generate reports to answer questions around movements in spending. Analytics in procurement is used to find saving opportunities, such as using the right suppliers, ordering the right quantities, and so on.
Cloud-based procure-to-pay software helps to enforce adherence to budgetary provisions. As indicated, all relevant documents in the procurement process are kept electronically. This includes budgetary allocations and approvals for purchases. Spending power is controlled which minimizes the likelihood of arbitrary or irresponsible spending.
Cloud-Based Procure-to-Pay Gives Better Control of Your Business
Managing your procurement operations through cloud-based P2P software offers great benefits in workflow management. The cost is affordable and tailored to suit business size and needs. It also allows the business to access a world-class and up-to-date experience in terms of UI, data security, and analytics tools. The business improves supplier relationships and minimizes the risk of invoice fraud. All this comes with no binding contracts.
ProcurePort offers the world’s leading e-procurement solutions. ProcurePort’s procure-to-pay software is tailored to offer the best tool to bring down your cost of doing business with suppliers.