The world has seen an increase in b2b marketplaces. They aim to make it easy for businesses to look for suppliers. Besides these, there are several other ways in which the b2b online marketplaces are chasing the procurement scenario for the better. We list a few of them.
Providing businesses with a wider choice of vendors
The price transparency prevalent in online
markets makes businesses aware of the options available to them. It also
increases the competition between suppliers, creating opportunities for the
purchaser. Thus, the online b2b marketplaces allow business to get the goods or
the services at rates comparable to what they might have achieved via
negotiations in the traditional market. Also, online marketplaces enable
organisations to consolidate all their vendors in one place.
To summarise, b2b marketplaces increase the
choice of vendors and help businesses get competitive pricing for their
purchases.
Helping overcome the logistics challenge
Logistics is a challenge for most
businesses out there. B2B
marketplaces usually provide faster delivery and advanced tracking by
combining technology with logistic capabilities. Also, you can get competitive
shipping rates directly from the suppliers in the marketplace. Thus, you are
saved from the hassle of looking for a separate logistics provider.
Integrating into the source-to-pay process
Source-to-pay or S2P is a procurement process
used by businesses. It starts with finding a supplier for the goods to be
purchased, followed by negotiations, finalising a contract, and ends with the
payments. Online marketplaces can easily plug into the S2P process of
businesses. These market places integrate with the purchaser’s S2P process and
digitise and simplify the sourcing, negotiation, and contract management. They
also help streamline accounting, tracking and reporting.
Helping in better management of the purchase process
You can track the purchase process right
from procurement to payment. Also, online marketplaces make it easier to
exercise purchase thresholds. They make it possible to eliminate purchase
orders and other time-consuming paperwork involved in the purchase process.
Additionally, it is possible to set preferred vendors and restricted vendors as
in a traditional purchase process.
Promoting efficient utilisation of resources
In the traditional procurement process, employees
of the business may have to spend time on repetitive tasks. Online marketplaces
automate most processes, allowing fewer resources to work on procurement,
besides increasing productivity. Thus, businesses can spend more time on
devising a strategy as compared to actual procurement.
Making for a better purchase experience
Marketplaces connect buyers and suppliers
with common needs. You do not have to put in efforts to search for a supplier
that meets your needs from a large pool. Also, online marketplaces have
verified suppliers for you to choose from. This saves you the time of getting
the vendor verified. Also, the digitisation and integration of the marketplace
with the company purchase processes makes the process easier and streamlined.
All this contributes to a better purchase experience.
Online marketplaces make for a smoother procurement process. Along with saving time and money, they help businesses make better purchase decisions. Hence, online marketplaces are a boon to the purchasing process of businesses.
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