We are seeing new ideas and models emerge in the digital era as technology in its forms assists us in streamlining many back-office tasks. Even though we have heard about them many times, they take hold. So that we are unable to comprehend what they represent.
One of the most important e-Business applications nowadays is e-Procurement, particularly in the form of e-marketplaces, as it offers intriguing returns on investment. Organizations confront significant obstacles when implementing e-Procurement due to the restricted state of current relevant technology, standards, and controls development and the scarcity of pertinent knowledge and experience.
The best instances of this trend are e-procurement and e-marketplaces, which we’ll go into next.
Describing E-Procurement
E-procurement describes the process of buying and selling goods and services online. The E-procurement process uses the following technologies:
E-Informing:
E-informing does not fall within the umbrella of the wider e-procurement process. But, it does make a significant contribution to e-procurement.
Vendor Management:
After that, the management of the vendor comes. This would thus ease the selection of the ideal supplier.
Managing Catalogs:
This ensures that whatever goods or supplies there meet the user-specified standards for use and quality. Inform potential vendors of the level of quality desired. Then, suppliers would have to adhere to these unique specifications.
E-Invoicing:
This entails the best supplier and the user exchanging billing information.
E-Payment:
Making the payment utilizing the seller’s available payment details. To pay his supplier, the user would enter his credit card details online.
E-procurement is very common in the public sector, and many governments have added it to their e-government programs that are already in place. Governments have taken these steps to ensure that their residents receive services and goods.
Now let’s see how e-procurement and e-marketplaces differ.
Describing E-Marketplaces
E-marketplaces are used for e-procurement. A web-based setting called an e-marketplace enables buyers and sellers to come together and do business online.
It is going to market in an electronic format. But, a person can explore websites that offer things for sale by several online merchants rather than travelling to a certain area of the city and browse the shops there. An essential tool for boosting e-commerce is an e-marketplace. The following categories of e-marketplaces exist:
Independent E-Marketplace:
An independent e-marketplace is a third-party-operated business-to-business internet platform accessible to buyers and sellers in a particular industry. Access classified advertisements or requests for quotes or bids in your industry sector by registering on a separate e-marketplace. Participation will involve money in some manner.
Buyer-focused E-Marketplace:
To create a productive buying environment, a group of buyers operates a buyer-oriented online marketplace. If you are in the market to make a purchase, taking part in the electronic marketplace might help you cut your administrative expenses and get the top deal from suppliers. As a supplier, you can promote your catalogue to a pool of potential clients by using a buyer-focused online marketplace.
Supplier-Focused E-Marketplace:
Several suppliers create and run this marketplace. They want to create a successful online sales channel for many different customers. Usually, you can search for a certain good or service by it.
Buyers gain from supplier directories because they learn about suppliers in industries and areas they might not be familiar with. These marketplaces allow sellers to generate leads and boost their visibility to potential customers.
Horizontal And Vertical E-Marketplaces:
Vertical e-marketplaces give companies access to the internet at every level of a certain industry sector, such as the automobile, chemical, construction, or textile industries. Using a vertical e-marketplace for your industry sector to buy or sell will help you operate while lowering your expenses, inventory, and procurement cycle time.
A horizontal e-marketplace links buyers and sellers from various markets or industries. A horizontal e-marketplace can be used to buy indirect goods like stationery or office supplies.
Now, have a look at the workflows of e-procurement and e-marketplaces.
What Is the Workflow of E-Procurement Systems?
E-procurement includes all business-related online purchasing and selling activities. E-procurement digitizes these tasks, which in a typical business might include faxing paper order forms or poring over paper pricing lists and catalogues. Businesses rely on e-procurement software or an eauction tool to aid in streamlining the purchase, shopping, and research processes.
For enterprises, their suppliers, and purchasing organizations, e-procurement offers a wide range of advantages. It lowers the cost per transaction while simplifying the request and payment process. It offers a way to manage expenses and extends the convenience of e-marketplaces to company purchases.
The majority of eProcurement options offer:
- Workflow for pre-purchase approval
- A concise list of the preferred or authorized supplies
- Tracking your spending
- Creation of purchase orders
- Receiving products or services in response to a poor wo
- Different user access levels
- Planning resources
Such features are included out of the box in a large number of popular eProcurement programs.
A buyer that uses eProcurement is a little different from your average B2B customer. The supplier must go above and beyond to satisfy the second customer, by agreeing to join an eProcurement system at the buyer’s request.
To expedite the purchase of direct goods for the production process, manufacturers may use e-procurement. Public and government organizations use an e-procurement system to streamline the RFQ process and increase purchasing power.
Now see the working of E-marketplaces and see the major difference between e-procurement and e-marketplaces.
What Is the Workflow of E-Marketplaces Systems?
In what other ways do e-procurement and e-marketplaces differ? Manufacturers, distributors, and other B2B companies market and sell products and services through digital commerce platforms. E-marketplace systems create the needs of the seller in mind. E-procurement systems create the needs of the buyer. Given that sellers only care about delivering to customers what they want, this can be perplexing.
But B2B sellers also have high standards since they must work within the boundaries set by their respective markets, procedures, alliances, and clients.
There are numerous B2B e-marketplaces platforms available that were designed for B2C applications. But platforms are created from the ground up to meet the unique requirements of B2B e-marketplaces. B2B-focused solutions have the following capabilities:
- Management of content
- An online storefront shopping cart
- Personalized catalogue management
- Many levels of access for clients
- Different price-lists
- User-generated grocery lists
- Capability for personalizing price lists and catalogues
- Online RFQ and RFP filing
- Management of customer relationships
- Adaptable processes
The companies that conduct the sales are the ones who invest in an e-marketplaces platform. While e-marketplaces systems are created for the seller’s use in the B2B transaction, buyers use the website to place purchases and send requests for bids.
Product distributors utilize e-marketplaces to promote sales, sustain client connections, and carry out marketing plans to expand their organization. E-marketplaces platforms help manufacturers expand into new markets, support their current supply networks, and strengthen their brand identities. Let’s finally think about B2B electronics distributors using e-marketplaces. These companies must keep track of and manage orders for electrical equipment from various producers, distributors, and B2B sellers.
In essence, e-marketplaces help businesses become more effective in their operations, marketing, order processing, and sales.
When a customer fills out a contact form, places an order online, or submits a request for a quote through a web browser, they are engaging in an e-marketplaces system. Customers use the e-marketplaces system because it streamlines the purchasing process. The purpose of the e-marketplaces platform is to let the seller interact with customers, expand their business, and digitize workflows.
