eprocurement Supplier Enablement

Until now we have focused on e-commerce techniques primarily concerned with retail, or B2C, types of e-commerce sites. Certainly many of the business perspectives that apply to B2C work for B2B as well. B2B sites should be well-designed, compelling, offer one-to-one marketing, frequently make good use of advertising, and should supply good customer service features - just like B2C.

• Non-discretionary Nature of B2B Purchases
  B2B, however, often involves a different class of features and functions than B2C. Why? Most B2C purchases are classified as "discretionary." You might want that new pair of shoes, but you can live without them. Most B2B purchases are considered non-discretionary. B2B sites very often:
  1. Support buying activity that MUST take place in the very near future
  2. Involve larger transaction amounts, which require greater security
  3. May offer negotiation and contract review facilities
  4. Provide very detailed technical information about products and services

E-Procurement: E-procurement refers to the electronic management of procurement activities through online platforms. It is designed to streamline the purchasing process for goods and services by leveraging digital tools. Core elements of e-procurement include:

1. Online Requisition and Purchase Orders: Allows businesses to request, approve, and manage purchase orders electronically.
2. Supplier Management: Maintains a centralized database of approved suppliers, streamlining interactions and compliance.
3. E-Catalogs: Digital catalogs featuring supplier offerings for quick comparison and selection.
4. Spend Analysis: Provides insights into purchasing trends and expenditures for better decision-making.
5. Integration with ERP Systems: Ensures seamless synchronization of procurement activities with broader enterprise resource planning systems.

Supplier Enablement Supplier enablement involves the process of preparing and integrating suppliers into an e-procurement system. It ensures that suppliers can participate in electronic transactions efficiently. Key aspects include:

1. Supplier Registration: Onboarding suppliers into the system with relevant credentials and data.
2. Training and Support: Educating suppliers on using the e-procurement platform for tasks like bidding, invoicing, and order fulfillment.
3. Data Synchronization: Aligning supplier data (e.g., pricing, product descriptions) with buyer systems for accurate transactions.
4. Performance Monitoring: Tracking supplier performance metrics, including delivery times and quality, to ensure compliance with contractual obligations.

Characteristics of Effective B2B Sites
For e-procurement and supplier enablement to succeed, B2B sites must be:

1. Well-Designed
   • User-Friendly Interface: Intuitive navigation, easy search capabilities, and responsive design.
   • Robust Backend: Scalable and secure architecture to handle high transaction volumes.
   • Customizable Dashboards: Tailored views for buyers and suppliers to manage their interactions.
2. Compelling
   • Engaging Content: Clear, professional descriptions of features, benefits, and value propositions.
   • Interactive Features: Tools like cost calculators, product comparisons, and dynamic catalogs.
3. One-to-One Marketing
   • Personalized Experiences: Recommending products or services based on purchase history and preferences.
   • Customized Promotions: Tailored offers for specific customer segments or individual buyers.
4. Strategic Advertising
   • Targeted Campaigns: Leveraging digital ads, search engine optimization (SEO), and social media marketing to attract relevant traffic.
   • Brand Positioning: Highlighting unique selling points (USPs) through compelling visuals and testimonials.
   • Cross-Selling Opportunities: Advertising related or complementary products to maximize revenue.

Summary: By combining the efficiencies of e-procurement with supplier enablement strategies and designing B2B sites that are user-centric, engaging, and personalized, businesses can enhance their supply chain processes, improve supplier relationships, and achieve greater operational excellence.

B2B sites are very complex. As a result, organizations that want to build B2B sites often do so by starting off with a packaged solution, a bundle of software that contains all or nearly all of the features/functions you need for B2B in an integrated fashion. Most packaged solutions for B2B tend to offer features that target buyers or sellers, specifically.

B2B Solution	Description	Requirements
E-procurement Website Audience: Sellers	B2B sites built by the buyer. You are a potential buyer. You post the products and services you need to procure, and your supplier comes to you. Note that this type of site is quite different from B2C: sellers come to buyers!	The buyer typically specifies the following: - Goods you need - Your delivery requirements - Your acceptable pricing parameters - Insurance and freight costs - The types of customer service and warranties you require Sellers or providers: - Agree to terms - Bid, or negotiate
Supplier Enablement Website Audience: Buyers	B2B sites built by the supplier. These types of sites often work with partnerships for: - Warehousing - Payment processing - Order tracking	The supplier typically specifies the following: - Publishes the products/services catalogue on the website - Lists its inventory and pricing information Buyers: - Browse the offerings - Bid or negotiate - Place orders - Choose shipping and insurance - Use online tools to track the order, from fulfillment through shipping

In the next lesson, you will learn how to determine customer fulfillment requirements.