5 Components of Procurement as a Service
Procurement has become a large part of all the total revenues. But, the selection of technological drivers in the procurement procedures has not driven the expected efficiencies which it has in other areas.
The procurement technology and any corresponding procurement procedure have become very complex due to the imbalance of innovations in technology and speed.
The simplest and most straightforward strategy is to adapt to the scenario of “..as a service”. This helps to embrace and treat the procurement function as a platform that integrates the procurement process through a mix of cloud-based technologies, procedures, and services.
The Procurement as a Service (PaaS) approach could tackle the procurement procedure problem by decreasing complexities and receiving basic and reliable processes.
Components of Procurement as a Service:
- Vendor Management & E-sourcing: Vendor Management in procurement-as-a-service helps to understand the current supplier base. Managing the vendor information and keeping the record up-to-date prompts smart sourcing, helps to decrease purchase-to-pay transactions inaccuracy. It also brings growth in productivity using e-sourcing tools.
- Contract Lifecycle Management: With a state-of-the-art contract lifecycle management application, you can utilize digital practice for different types of contracts to make standards, while additionally streamlining the negotiation procedure.
- Spend Analytics: Spend analytics is achieved by gathering information from various sources, and after performing a thorough data quality checks, these data pieces helps to drive decision making.
- Cost and Performance Review: Data science technology helps to perform a cost, risk, and performance review on your spending. Vendor risks are categorized on the basis of the nature of risk, vendors in unstable geographical areas, etc. Authorizing the data of vendors selectively while creating a purchase order helps in handling data for decision-making.
- Reporting dashboards: The cloud-based PaaS approach gives the staff an opportunity to identify any further procurement innovation via reporting dashboards and visualization tools.
PaaS approach tackles the inefficiencies by merging with the cloud-based technology to manage the vendors, costs, risks, performance, enable e-sourcing, deal with the contract lifecycle management, and review with spend analytics.