How to Choose the Best Cloud Based Purchase Order System for Your Business
Rapid advancements in digital technology are always followed by hyperboles and misconceptions. Cloud-based purchase order software is no exception. Everyone has an opinion about using an online purchase order, and there is a lot of uncertainty when it comes to separating myths from reality.
Traditionally, procurement technology investment primarily focused on things like eSourcing and contract management. Most CPOs plan to reduce their investments in traditional technologies and shift their focus to cloud-based, self-service solutions that will take not only the strain off their IT staff but also allow business users to take control of their purchasing activities.
According to Deloitte, nearly 45 percent of the CPOs around the world are actively investing in the SaaS purchase order system to support their procurement activities. However, that doesn’t seem to make much of a difference. The good news for organizations is that the market is competitive, and they have numerous choices.
Before you consider taking a leap towards cloud-based purchase order software, it will be wise to explore and understand the key myths and facts that determine whether an automated purchase order system is a ‘nice-to-have’ or a ‘must-have’.
6 features every PO solution needs to offer
There are myriad purchase order SAAS systems in the market. But great solutions will offer all of the following features at a minimum. Here are some of the most important features a cloud based purchase order software must have:
Capture, approve and keep track of purchase requests with easy and fluid forms.
Issue POs and generate orders automatically from approved purchase requests.
Onboard, maintain, and manage vendors in an easy-to-use, efficient platform.
Approve your invoices on the go and perform quick three-way matching.
Generate actionable, data-driven insights from your purchasing-related data.
Connect your procurement cloud with other essential finance software systems.
5 myths about cloud purchase order software, debunked
Myth #1: It is only good for enterprises
This is the biggest myth about cloud-based purchase order systems. Modern purchase order software is for everyone. Deploying an online purchase order system will make your purchase orders accessible in real-time no matter how small or big your company is.
Cloud-based purchase order software will help you make data-driven decisions when it comes to optimizing your organizational spend. A cloud-based PO system makes much more sense for SMBs, since real-time analytics will come in handy as they grow. It will help them spot bottlenecks in the PO process and alleviate them quickly.
Myth #2: You lose the human touch
This isn’t true at all! In fact, the collaborative nature of a purchase order system can help organizations connect their stakeholders better. An automated PO system eliminates data silos that are created as an effect of using multiple software to manage the purchasing process.
A cloud-based purchase order system will break communication barriers and help team members interact with each other effortlessly throughout the entire process cycle. In reality, an automated purchase order system will eliminate repetitive, mundane tasks and allow procurement staff to focus more on strategic tasks that demand a human touch.
Myth #3: It is prone to external threats
The vulnerability of confidential business data is the most debated topic when it comes to moving a business process to the cloud. Leading procurement platforms like Kissflow have a number of security plans in place, like data encryption and sophisticated firewalls, to fend off any data breach.
Additionally, when you run purchase orders through Kissflow Procurement Cloud, you get built-in access rules that can allow or prevent access to confidential data on a need-to-know basis. Through API integration, Kissflow Procurement Cloud enables seamless data exchange with all of your essential tools–accounting systems, ERP, finance software, and everything in between. You eliminate the chance for data loss and redundancy.
Myth #4: It requires specific tech expertise
We don’t need to take courses to learn how to use social media platforms like Facebook and Twitter. In just the same way, you don’t need to attend extensive training or require specific tech expertise to use an extremely user-friendly procurement software like Kissflow Procurement Cloud to take care of purchase order management.
All digital procurement systems are designed around the way organizations to perform their purchasing activities. They have a wide range of functionalities and pre-configured templates based on industry best practices that will help even a business user without coding skills work comfortably to manage POs digitally.
Myth #5: It is expensive
Most SaaS-based purchase order platforms offer ‘pay as you use’ subscription, so organizations neither need to dish out a huge initial investment. Flexible pricing, an extensive set of functionalities, and ease of use make cloud procurement solutions like Kissflow Procurement Cloud a good fit for purchase order management at both SMBs and enterprises.
Kissflow Procurement Cloud provides single sign-on, digital fluid forms, solid purchase order, and purchase request management abilities, mobile access, a configurable reporting module, analytics, integration, and many other features that will give packaged purchase order software a run for its money.
Advantages of using a cloud-based purchase order system
Cloud-based purchase order systems offer organizations endless opportunities to streamline their purchase order process and fulfill needs at the right time. Let’s take a look at the top three benefits organizations stand to gain by implementing an online purchase order system.
Cloud-based purchase order systems:
1. Offer great flexibility
What could possibly precede an organization’s desire to cut costs? The ability to scale up their operations rapidly to meet the growing demands without making a dent in their bank account. SaaS-based PO platforms do a splendid job in not just meeting those expectations, but also going the extra mile, and exceeding them.
2. Speed up deployment
Gone are the days when you wasted months, or even years, to implement a purchase order system. Today, logging into a cloud-based purchase order system is similar to subscribing to an online magazine. You just sign up in the platform, pick up a plan that suits your needs, and… tada, you can start using it, right away.
3. Reduce operational costs
Server maintenance, data backups, system downtime, and every other technical need is handled by the platform. So, with a lot less to do, and a standardized platform to remove redundant tasks, you would be able to do much more with fewer staff. Additionally, you can cut down the administrative burden of your IT staff substantially.
It’s time to move to the cloud
Just as it is with other technological innovations, if you look past the hype, you will see the real benefits of moving your procurement processes to the cloud. Cloud-based procurement solutions like Kissflow Procurement Cloud allow organizations to take care of purchase orders efficiently and intuitively.
Such digital procurement systems open up a new window of opportunity to the procurement team by reducing the time they spend managing and tracking purchases manually. At the same time, they dramatically reduce expenses (hardware, infrastructure, maintenance) while offering utmost control and transparency to the PO process.
Choosing the right cloud solution for purchase order management is simple when options like Kissflow Procurement Cloud are on the table. If that sounds preachy, take a look at the free demo today and see for yourself if these claims hold good for you and your company’s procurement needs.