Pradeep Agarwal, Senior Director, ERP Cloud, Oracle India speaks with Ritwik Sinha and explains the benefits of cloud based procurement process. Edited excerpts of the conversation…
Please share the basic details of cloud based self-procurement process?
Procurement is one of the most basic and probably the most cumbersome functions of any organization. It includes approvals, POs, invoices, and challans, which makes the whole process too much paper-oriented and time taking process. Besides, the process is susceptible to human mistakes, which can be detrimental to the financial health of the organization.
Enabled by cloud-based procurement, businesses can efficiently handle the process of requisitioning, sourcing, procuring and handling payments and thus modernize business’ procurement services. Modern procurement via the cloud allows for an effective and organized system that helps a business to keep costs under control, select the best suppliers, enforce company policy and appraise supplier risk. In addition, the overall amount of manual transactions will be reduced throughout the entirety of the procure-to-pay cycle, which tends to be time-consuming. Cloud procurement systems allow creating purchase orders, weigh contract negotiated prices and terms, manage revisions to documents, and process non-manual supplier invoices. By allowing employees access to your business’ cloud-based procurement system, you are allowing for a cohesive space, where everyone is able to get what they need while allowing their actions to be monitored according to company policy.
How can organizations ensure discipline while letting teams to procure technology for themselves?
When we talk about self-procured services on the cloud, we talk about a company’s spends being managed via automation and faster implementation of tasks and consumer-like user experience which is easy to use. It also decreases the upfront costs and helps the user to integrate with online or offline platforms. It is like customers scrolling and browsing through an e-commerce website and being able to create a virtual shopping cart and manage what they wish to keep and do not wish to keep. Every transaction is recorded and cannot be tampered; hence the whole process becomes a lot more transparent and gives a complete picture to everyone involved in the process. All these measures ensure discipline while teams can use the technology for procuring materials for themselves.
What are the key features that you propose in a procurement cloud to your customers?
Ecommerce has changed the way that we shop and have set some high benchmarks in creating digital experiences that take the friction out of shopping online. Those experiences have shaped the way people expect to buy, even in the workplace. Cloud-based self-service procurement solutions like Oracle’s Self-Service Procurement Cloud make it easy to offer and scale an easy, consumer-like buying experience. Users don’t have to sit through extensive training. Instead, they can use an intuitive search interface, create shopping lists, and buy the items they need from pre-approved purchase lists. Employees are more satisfied, and your procurement team can reduce support costs and speed up the buying experience.
What gives Oracle cloud users leverage over other industry players?
Modern procurement starts with standardizing, streamlining, and automating the source-to-pay process. With Oracle Procurement Cloud, you’ll gain a more efficient, effective, and influential procurement organization that helps keep costs under control by selecting the best suppliers, enforcing policy, and managing supplier risk. Oracle Procurement Cloud is a complete solution for businesses of any size for direct or indirect spend. Collaboration with suppliers is easy through document sharing and increased information accuracy for deeper insights. Employee request management is also streamlined through Oracle Self Service Procurement Cloud with built-in spend controls.
Other key benefits that Oracle’s cloud solution gives that the purchases are directed to approved suppliers for contract compliances and policy compliances are met through multilevel approval workflows. Moreover, with the assistance of Oracle’s Fusion Cloud, the users are given interactive help and training as and when required.