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Organizations today operate in an environment where perpetual technological innovations are transforming how they operate – in response to changing expectations and industry standards. Next-gen technologies are replacing legacy systems and practices, eliminating their inherent inefficiencies, bottlenecks, and delays.
Traditional procurement systems are no exception to this revolution, where organizations seek to replace complex, inflexible, and investment-heavy legacy systems. Although procurement systems generally lag in the technological revolution, the inefficiencies, wasted time and effort, and lack of convenience are becoming even more evident as other operations move forward in the data economy.
So, what is the solution to overcome these limitations of the legacy procurement systems? The answer is “Cloud Procurement Systems”.
But what exactly is cloud procurement (or cloud-based procurement) solution? A cloud procurement solution is a cloud-based system that can help your procurement team automate processes like strategic sourcing, supplier relationship management, cost analysis, and project tracking. These systems also offer collaboration and analytical tools to help you effectively manage risks, enhance agility, save costs, and ensure compliance across your procure-to-pay cycle. And as the popularity of enterprise cloud is increasing – 67% of organizations are using cloud-based infrastructure, and 81% have a multi-cloud strategy in place or in the works – it is logical to assume that global organizations need to be steering their procurement teams toward cloud procurement solutions.[2]
Legacy systems and manual tools have become obsolete because of their limitations in handling the complexities of the modern procure-to-pay cycles. The next solution many organizations looked at was the all-in-one procurement system that promised convenience and efficiency. However, procurement professionals soon realized that these promises were a far cry from reality as these all-in-one procurement software packages were inflexible and demanded a lot of time and effort from the procurement team to run smoothly. This came at the cost of agility, visibility, and overall efficiency of the procurement processes, which is detrimental to an organization operating in a fast-paced data-driven market.
On the other hand, cloud procurement solutions allow organizations to forgo the large upfront investments and tackle the challenges of legacy systems and all-in-one procurement software head-on, one at a time. An effective cloud procurement strategy can help you ensure visibility and transparency across the procure-to-pay cycle, as each stakeholder can access and work on the same data. This also eliminates any data entry or communication errors and delays, making the procurement process more accurate while increasing supply chain efficiencies. As a result, you have actionable insights into the procure-to-pay cycle. You can save your time and resources, redirect them to other value-enhancing functions, and improve the overall agility of your procurement team.[3][4]
Streamlining your procurement process is the foundation of achieving visibility, agility, and transparency in the procure-to-pay cycle. The cloud procurement solutions allow you to automate the basic procurement functions and streamline the procurement process by:
Cloud procurement or e-procurement solutions allow you to streamline, eliminate inefficiencies, and add value to the end-to-end procure-to-pay cycle with the help of process automation, data-driven insights, and agile decision-making. Apart from these, some of the major cloud procurement advantages are: [2][3]
Once you have decided to transition to cloud procurement, the next step is to plan the change to ensure a smooth transition. Here are some tips that can help you minimize any mistakes and ensure a seamless transition from legacy procurement software to a cloud strategy:[2]
It is now time to move away from on-premises procurement software packages and leverage cloud-based procurement solutions to improve the operational efficiency and agility of your procurement team. Without a large upfront investment or ongoing maintenance costs, organizations can easily increase value, improve supplier collaboration, and enhance the productivity of their procure-to-pay cycle. This, coupled with increased accessibility and convenience, can help ensure more efficient and digital-ready procurement processes as your organization progresses in today’s data-driven market and data economy.
Get in touch with Infosys Public Services today to understand your procurement needs and modernize and digitize your procure-to-pay cycle with Infosys eProcurement.
She has over 11 years of experience in product and service marketing working with top IT firms globally. At Infosys, Chetna leads brand, content, and campaign management to achieve marketing ROI and drive business growth.