Suppliers must raise their game and offer to integrate with any of their customers purchasing systems. Their future revenues will depend on it.
While many suppliers have struggled to keep the lights on over the past year, many enterprise customers have significantly increased their spending on e-procurement technology.
Most large enterprises have been looking beyond the current crisis for many months now. At the beginning of the pandemic, costs were cut to weather the real or potential downturn in demand. However, the impact of Covid 19 has been more nuanced and has served to emphasise that cost-cutting alone is a busted-flush unless it provides funding for innovation and growth. The lesson learnt by Enterprises is that the companies which invest during a downturn are more likely to emerge stronger.
How does this affect Suppliers with Enterprise Customers?
If you are a supplier to medium & large enterprises please don’t take this to mean that you can relax. Your customers are fundamentally changing how they do business, and what they expect from their suppliers. The clear message is that suppliers must invest in digital-transformation to ensure the flow of commerce with their customers is as automated as possible.
Please pause to reflect on how you have been doing business with Enterprises over the past 5 years. Have you noticed just how many of your customers have announced plans to launch a new purchasing system? You may have taken this to mean that you’ll need to sign-up to yet another supplier network to receive PO’s and upload invoices, but not really given it much more thought than that?
If this sounds familiar then you need to take stock of what is happening in your customer’s business now. It’s likely you are becoming part of a problem that enterprises are fiercely trying to eradicate as they move towards friction-free commerce with their suppliers.
It’s in the numbers
E-procurement investment by Medium & Large Enterprises is growing by 25% every year. In 5 years time, most of your customers will have a state-of-the-art purchasing system capable of accepting integrations with any of their suppliers.
Many Enterprises complain at the unexpected challenge they face in on-boarding their suppliers to use these new systems. So many suppliers want to bury their heads in the sand in the hope that they can continue to do business their way. They fail to appreciate that this isn’t an isolated incident with a few customers. It’s a fundamental shift driven by the necessity for enterprises to digitise their supply chains & procurement processes, or risk failure.
Suppliers of Services face different choices to Suppliers of Physical Products
Suppliers must look at how they can integrate with purchasing systems to support their customer’s digital transformation. For suppliers of physical products, the very least you should offer is a punch-out enabled connection to your eCommerce system. This will allow customers to browse & purchase directly from your catalogue quickly & efficiently.
For suppliers of services such as Legal, IT, Consultancy, Marketing, & MRO, it’s much more difficult. You probably send detailed quotations by email to your customers and expect a purchase order in return. That expectation needs to change because no-one in an enterprise today wants to admit that they spend any of their time manually copying information from a supplier’s quotation into a purchase requisition.
The purchasing of services accounts for 58% of an average enterprise’s expenditure. As you can imagine, the massive amount of time wasted on typing purchase orders for suppliers of services is now under intense scrutiny. Unfortunately, too-few suppliers are coming forward to offer any practical solutions to automate the quote-to-order process.
There is now a proven, low-cost solution for Suppliers of Services
As a services provider, you can either hope things stay the same or you can choose to play your part. One way of doing this is by subscribing to a G-Quotes account and allowing your customers to automatically convert your quotations into purchase orders. You’ll be able to connect with an unlimited number of customers using punch-out and receive your purchase orders 5x quicker than today.
G-Quotes is available with a free trial and no long term contract. All business leaders know that generating revenue from existing customers is a lot easier than winning new customers, so invest now to secure your future.