For Buyers
Business Benefits: Buyer's Perspective
Purchase Price Improvement (0.2 - 5.0% of Material Cost)
Transparency of cost elements
Supplier Net Price Comparison
Total Cost of Ownership (Value Pricing) Model
Spot vs Contract Analysis
Procurement Optimisation
Wider Discovery of suppliers potentially creating higher competitive intensity
Reduce potential leakage from contract price execution
Rebate Entitlement not claimed
Error in formula price which is disadvantageous to buyer
Process Improvement Cost Reduction
Automated, integrated (to ERP and Multiple Supplier connectivity) & Secure Process:
Reduce manual handling & hence, manpower cost
Digitalisation and traceability enables reduction of procurement audit cost
Working Capital Improvement through Collaboration
LC capital cost reduction through speedy and secure process (blockchain)
Inventory cost reduction from VMI
Benefits Sources and Realisation of benefits are dependent on sophistication and maturity of processes (i.e. including impact from processes enabled by platform subscription plan)
Convenience
Anytime, anywhere on any device
Real-time & dynamic
Single platform instead of accessing multiple supplier eCommerce sites
Transparency & Visibility
Transparency of buying process and price element
Transparency of price formula, rebate, data used (e.g. exchange rate)
Order tracking/supply chain visibility
Real-time visibility, transparency of “market price”
Fair trade
Trade term rules protecting both buyers and sellers (e.g. min/max price and quantity)
Value Pricing (fair to supplier and buyer)
Performance or service level Based pricing enablement
Unified Customer Experience
Common pricing engine across channels
Well defined customer offerings and service level
Enhanced Compliance to internal process
Procurement Approval Process
Improved Service and Customer Experience
Frictionless Experience (e.g. Product availability, Dynamic Pricing & Negotiation)
Order promised date from supplier (in case requested date is not available)
Customer Service (eg Claims and Complains Management)