By Sanjay Puri, CEO, C1 India

Cloud computing is a form of internet-based computing that provides ability and access to store data and programs via device-on-demand with an internet connection. Its ubiquitous nature and on-demand access to shared processing resources and data (devices ranging from a PC to mobile with an internet connection), makes it remotely accessible at all times. It allows users and enterprises to avoid upfront infrastructure costs and store and process their data in third-party data centers. Cloud computing can majorly be divided into 3 general categories. First, Software-as-a-Service (SaaS) platforms which provide the ability to subscribe to and access a service over the internet. Second, Platform-as-a-Service (PaaS) that provides an option to create a custom application that your entire business uses. Last, Infrastructure -as-a-Service (IaaS), which is the option to utilize the structure built by companies like Amazon.

Cloud technology is evolving the procurement process and its flexibility of usage dramatically. The shift is especially beneficial for businesses, the most notable being its accessibility and pace of implementations in the procurement process of an organization. Cloud-based procurement platforms are disrupting procurement software base for its implementation, flexibility, and ease in usage, low-cost solution and, dynamism to integrate with online and offline platforms. The cloud-based platforms focus on simplicity, driving process improvements, decreasing process cycle time, adding value, increasing efficiency, visibility, improving accessibility with real-time global coverage, and better collaborations. With certain procurement cloud services, businesses can efficiently handle the process of requisitioning, sourcing, procuring, hence, transforming the enterprise’s procurement functions. It enables organizations to predict demand, aggregate orders, extend delivery cycles to reduce costs, optimize inventory, supplier management, and compliance with contracts, reduce risk, and all sorts of tangible and intangible benefits.

Some benefits of Cloud-Based procurement platform

• Always Up-to-Date: An ERP system that handles the whole cloud-based software which doesn’t require running manual updates, saves time and money in terms of needing an IT team. Programs are always up to date, there’s no requirement to update software, upgrade hardware, apply patches, and troubleshooting errors.
• Easy Collaboration across Departments: Its integration across all types of devices leads to fewer delays and more opportunities. It provides real-time information to everyone operating and avoids the potential for errors and inaccuracies.
• Enhanced Security: Updates and patches are automatically applied.
• Flexible Functionality: It is highly customizable and adjustments can be made as per business requirements. Also, it’s possible to integrate SaaS software with other business departments or applications to streamline workflow.
• Cost Effective: No upfront investment in hardware, only subscription cost for usage, maintenance, and upgrades.

Cloud-based procurement platform solution focuses on mobility, simplicity, and easy access to data at all times on the device of your choice. It improves operational efficiency, productivity, cost-savings, and flexibility in usage. Along with low upfront costs, the solution offers a clearer approval workflow, improved spend management and easier analysis, strict compliance to contract, better inventory management, high-level security, regular updates, and greater supplier management. To accelerate the procurement cycle from sourcing to payment, enhancing efficiency in dispersing information/managing updates in real-time and improving mobility, adopting cloud-based procurement solution is the key.