Creating an e-procurement marketplace for an industrial group

The majority of analysts consider that 75% of B2B purchases will be made via an online platform in 2022. However, B2B purchasing departments have long resisted digitalization: in 2019, only 1 out of 3 purchasing departments was digitised (Opinionway study). In this context and to remain competitive, companies must therefore review their purchasing organization. As such, the creation of an e-procurement platform can be an effective way to revolutionize the purchasing functions of large groups and their subsidiaries. Here are some explanations. 

E-procurement Marketplace: the answer to a need for rationalization of purchases by large groups

Managers have long been reluctant to change their purchasing processes. Long-standing dependence on suppliers, calls for tender, sourcing, expense management... All these elements are part of the daily life of large groups, and it is sometimes difficult to transform their practices. However, many factors are now reshaping purchasing functions: new purchasing habits, new offers, health context, etc. Also, the younger generations of purchasing managers, who are used to buying online for their personal needs, are now wondering whether the habits that were used until now are still the most appropriate. Wouldn't centralizing online purchases make companies' daily lives easier? Isn't the creation of an e-procurement marketplace the best solution to streamline the tasks of B2B buyers?

What is an e-procurement marketplace?

An e-procurement platform puts company buyers in touch with referenced suppliers. Companies can thus make their purchases quickly and easily, using the catalog of products available on the internal purchasing platform. This centralization offers a double advantage: in addition to saving precious time, buyers can easily compare offers to get the best price.

E-procurement Marketplace: a valuable aid for purchasing groups

E-procurement marketplaces meet the time and profitability challenges of companies: commercial transactions are dematerialised and purchasing processes are optimized. In addition, administrative costs are significantly reduced and expenses are controlled. Therefore, e-procurement marketplaces broaden the possibilities of companies: by optimizing the purchasing process, they free up time for teams, while making information more easily accessible. Ultimately, this e-procurement approach is a valuable aid for purchasing centers because it allows them to :

• Select products from a wide range of offers;
• Compare prices easily: no need to juggle between the e-commerce sites of all suppliers;
• Delegate low value-added administrative management to a trusted third party.

A lever for the digitalization of large groups and their subsidiaries

To revolutionize their purchasing processes, large groups and their subsidiaries are increasingly turning to the B2B marketplace model. The keystone of successful digitalization, the e-procurement marketplace has many advantages:

Improve the user experience

The e-procurement marketplace allows to adopt the user experience of B2C platforms: corporate buyers no longer need to use cumbersome systems to manage simple tasks, they model their professional practice on their personal experience and thus gain in efficiency.

Improve purchasing processes

Supplier centralization helps to reduce order management costs as well as invoice control and management time. It also ensures that you pay your suppliers on time and keep control of your company's ethical rules. The purchasing process is optimized and you get better results than with the previous system.

Create a fair competition between suppliers within the platform

In an e-procurement platform, sales prices are self-regulating: in direct competition, sellers align their prices with those of their competitors, without any negotiation with the buyer. This allows companies to test new products and services.

Delegate data and product management

The management of supplier and product data is done outside the group's ERP systems. You delegate data management as well as purchasing management: with the e-procurement marketplace, you benefit from zero stock and zero logistics.

Delegate the daily management of the platform to a third party operator

In an e-procurement marketplace, the operator takes care of selecting suppliers, managing their onboarding, the content of the offer, and all financial aspects of the platform. This relieves your teams, who can concentrate on other tasks.

Focus resources on strategic purchases

The more purchasing is done through an e-procurement marketplace, the more purchasing managers are available to focus on strategic tasks. No more checking suppliers, negotiating contracts, or monitoring expenses! Your employees can move from repetitive, low-value-added work to strategic roles: finding new and better platforms, maintaining strategic relationships with suppliers, anticipating and managing risks, etc.   In short, the creation of an e-procurement marketplace revolutionizes the daily life of large groups and their subsidiaries by :

• Giving them the benefit of a centralized offer;
• Reducing costs and increasing margins;
• Giving them the ability to focus their resources on strategic purchases.

Have you considered the marketplace model as a digitalization lever to revolutionize your purchasing functions? The launch of a marketplace is within the reach of all companies. Lemonway, a certified payment service provider, can help you manage your payment flows. Got a project? Any questions? Tell us about your needs!