Whether a business is large or small, all of them have their own set of challenges. But small medium-size enterprises (SME’s) have their own distinctive barriers that must be overcome. So as to remain aggressive, organizations persistently investigate more channels that will help to overcome the challenges and build a strategic advantage.
The challenges faced by SME’s in the procurement process:
- Access to limited vendors: SME’s generally have access to the limited vendors only. Here, SME’s have very limited access to innovative products as well as raw materials.
- Quality issues: One of the key explanations behind the low quality of the finished products is the low quality of raw material. This is the reason why SME’s find it difficult to compete in international markets.
- Challenge in economies of scale: Indian SME’s feel difficulty to achieve economies of scale as work with smaller vendors who can’t consistently supply a large amount of material.
- Challenges in the payment system: SME’s often have working capital related difficulties. SMEs will confront difficulties working with local as well as unorganized vendors who are not prepared to move into the new digital transaction system.
The difference observed with eCommerce:
B2B eCommerce will help to overcome the challenges of SMES’s procurement process in the following ways:
>> With b2b e-commerce platforms, SME’s will have multiple options to procure materials from different vendors. This will open a wide range of possibilities for the SME organization.
>> By implementing just in time procurement strategies will help the SMEs to make most of their working capital. Ecommerce also helps in cutting down on raw materials hence reducing the warehouse costs.
>> By sourcing from the b2b platform, SME’s can procure better quality materials and that too with discounted rates.
>> B2B platforms like helioscart will help SME’s to float quotations to “n” number of vendors across any geography.
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