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Turbocharging Mid-Market Procurement: Slash Cycle Times by up to 75% with Penny Digital Software

Sep 30, 2024

4 min read


Is your procurement process bogged down by inefficiencies, delays, and endless back-and-forth communication? If so, you’re not alone. While e-sourcing technology is nothing new, mid-market companies in the GCC still find themselves caught between a rock and a hard place when selecting the right procurement toolkit. With over a hundred solutions in the market, most cater to enterprise organizations with steep pricing, complex setups, and lengthy implementation times. So, where does that leave mid-market firms looking to optimize their sourcing and procurement strategies?


The answer could be closer to home than you think. Enter Penny Software, a homegrown modular solution built in the GCC, tailored to meet the unique needs of the region’s mid-market players. Economical, easy to deploy, and proven to slash procurement cycle times by up to 75% (see case study below), Penny Software stands out as the go-to choice for firms looking to dive into the world of digital procurement technology. With a strong portfolio of mid-market clients in the region, Penny Software is not only a local champion but a true game-changer in the e-sourcing and procurement space.



Image of a procurement professional in a turbo charged sports car


Manual Processes & Traditional ERPs—Are They Holding You Back?

If you’re a mid-market company relying on traditional sourcing methods like email, spreadsheets, or basic ERP systems, chances are you’re grappling with a host of challenges that are often overlooked but can have significant repercussions. Manual processes lead to fragmented data, making it difficult to track, manage, and report on procurement activities. There’s also the increased risk of errors and a limited capacity to reach out to a broader supplier base, (many of whom may not be ready for dealing complex sourcing tools). This lack of visibility and control can cripple your ability to execute timely and effective sourcing decisions.


On the other hand, ERPs might offer some level of integration, but they often lack core procurement functionalities such as savings tracking and advanced sourcing capabilities. They are complex, not user-friendly (especially for GCC supplier communities), and lack the flexibility to adapt to changing business needs quickly, making them an imperfect fit for modern sourcing activities. In the grander scheme of things, these inefficiencies tend to get overlooked—until they snowball into major financial and reputational risks.


The High Cost of Inefficient Sourcing: A Case Study

Let’s look at how Penny transformed the procurement function of a global leader in the heating, ventilation, air conditioning, and refrigeration systems industry. Before adopting the Penny platform, this manufacturer struggled with several sourcing challenges:

  • Limited traceability: Sourcing data was scattered and hard to track, making visibility into the procurement process almost impossible.

  • Limited vendor base: With a constrained pool of suppliers, the company was unable to leverage competitive offers.

  • Daily mass RFQs, error-prone: The reliance on email and spreadsheets for daily RFQs led to frequent errors, needless manual work and confusion.

  • No centralized platform: Procurement activities were spread across different tools, hindering collaboration and decision-making.


After Penny: The company transitioned seamlessly to a streamlined and automated procurement process, marked by:

  • Transparent and digitized workflows that ensured all stakeholders were on the same page.

  • An immediate expansion in the vendor base, allowing for broader competition and improved negotiations.

  • Automated processes that enabled the team to compare offers quickly and efficiently.


Penny’s concrete value delivered:

  • Turnaround time for first offers reduced from 9 days to just 2 days.

  • 50% reduction in last offer turnaround time.

  • 4% direct savings achieved after implementing Penny.

  • 11% cost avoidance based on average supplier offers.


With these results, Penny not only slashed procurement cycle times but also empowered the organization to drive significant cost savings and avoid unnecessary expenses.


Image of a procurement professional calculating improvements.

Are You Stuck in Sourcing Limbo?

If you’re using traditional sourcing methods, it’s time to ask yourself some tough questions:

  1. Are your sourcing activities taking longer than expected?

  2. Is tracking supplier responses, bids, and approvals cumbersome and time-consuming?

  3. Do you struggle with a lack of visibility and control over sourcing decisions?

  4. Are errors in manually handled data affecting your sourcing outcomes?

  5. Can your current system accommodate a broader supplier reach, or are you limited by existing constraints?

  6. Are savings and procurement KPIs tracked consistently and accurately?


These questions can help you gauge where you stand on the sourcing benefits spectrum. If you’re falling behind, it’s a strong indicator that you need to rethink your digital procurement strategy.


Why Penny Software Should Be on Your Radar

If you find yourself struggling to keep up, consider the following Penny Software features that make it a standout choice for mid-market firms:

  1. Price: Penny Software is designed with the mid-market budget in mind, offering competitive pricing without sacrificing on key functionalities.

  2. Simplicity: No complicated setups or convoluted interfaces—Penny’s platform is intuitive, making it easy for your team and your suppliers to get up and running quickly.

  3. Speed: With Penny, deployment can happen in weeks, not months, allowing you to see value faster.

  4. Flexibility: Penny is adaptable to your unique sourcing needs, ensuring that the platform grows with your business rather than forcing you to conform to rigid workflows and invest in unwanted modules.

  5. Regional Expertise: As a solution built by, for and based in the GCC, Penny understands the unique procurement challenges of the region and has tailored its platform to address them effectively.


If these features resonate with your current challenges, it might be time to turbocharge your procurement strategy with Penny Software and leave behind the inefficiencies of manual processes or traditional ERPs. After all, with up to 75% reduction in cycle times, the benefits far outweigh the costs.


If you are interested in learning more or looking to deploy procurement technology, let’s talk.

 

At TechConnect:ME we have decades of experience in helping companies’ step-change their procurement processes. Contact us today for a no-obligation chat on how we can help you, or to arrange a demo of our digital procurement tools designed to improve business outcomes, solve problems and unlock hidden value fast.

 

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