Tag Archives: marketplace

Is It Time For Procurement Pros To Go To Market?

Going to Market (Place) : The Future of Procurement goes live on 13th November. Sign up now.  

Could a  B2B e-marketplace transform the lives of your procurement team? What are the key benefits of using a marketplace and why are some procurement leaders reluctant to take the leap?

We hear from Molly Dobson, Head of Enterprise Customer Success – Amazon Business and Mary Hetherington, Director of UK Group Procurement – AXA to get the low down on the future of marketplaces, how they can benefit procurement professionals and what reservations are still held by the profession.

Whist digital marketplaces have evolved over time, and come and gone with varying success, the core functionality remains in that they are a central place where people gather to buy and sell goods and services.

“The digital marketplace isn’t a revolutionary concept.” explains Molly. “But it definitely has been more prevalent in our personal lives than our professional lives – e.g. Uber, Airbnb and Amazon.”

Having said that, “early innovators really did introduce a concept in procurement that still underpins the business marketplaces of today. These are capabilities like electronic procurement, reverse auctions and buyer discovery.”

Molly outlines the three core components of any procurement marketplace:

  1. Breadth of choice

The  first core characteristic of a marketplace is having that “wide range of choice within a single interface, which is why we all like to use marketplaces within our personal lives. Within a marketplace like Amazon Business you can access 250 million products from toilet paper to precision test and measurement instruments, to professional medical supplies.”

2. Competition 

“Users of a marketplace get access to multiple sellers for the same offer. Each of these sellers is competing against one another to get your business and with this competition you can have reduced commitments to some of those long, inflexible contracts. We like to talk about a marketplace being dynamic in that sense.”

3. Transparency 

“In a marketplace you can have transparency of product and seller reviews and pricing and delivery options. You really get the capability to compare all of your options and make informed buying decisions.”

“In the procurement space, in particular, you have additional requirements with things like the ability to integrate with other procurement applications.”

Marketplaces and maverick spend

Mary recently began piloting a marketplace at AXA.

“In the short space of time that we’ve been [trialling a marketplace] it has really surprised me the depth of information that we can attain about who’s buying what, the types of goods and services we’re buying,  at a very low level which hasn’t always been that transparent in the past.

“This is really useful for a large organisation like mine where we’re supporting several different business units with very diverse sets of requirements and lots and lots of small purchases. It gives us the opportunity to consolidate information and identify rogue spend very quickly.”

Measuring marketplace success

AXA has been measuring the success of its marketplace with three metrics; customer satisfaction, billing and fulfilment and  management of information.

  1. Customer satisfaction

Customer satisfaction on the solutions and the process around Amazon Marketplace is one metric AXA have been using to measure success.

“We all know that Amazon is the go to place for purchases. We use it in our private lives and people like that experience so we want to try and give our business customers some of that experience and flexibility when dealing with business purchases.”

2. Billing and fulfilment

Making sure that billing and fulfilment of the goods is effective, [that it] interfaces neatly with our purchase to pay solutions  [and] that we get the granularity we want on our invoicing.”

3.  Great management of information

It’s important to ensure procurement leaders can make well informed decisions about their future spend and future requirements.

“It can take some work to get [a marketplace] off the ground, [fitting into] your strategy [to a point where  multifunctional leaders can buy into it.”

Marketplace adoption

So what’s holding procurement teams back when it comes to adopting marketplaces. Mary Hetherington, Director of UK Group Procurement – AXA believes part of the challenge is procurement’s need to achieve a healthy balance between enabling the business and applying controls.

“We need to show flexibility but also proportionality when we’re looking at different sizes of purchasing,” she argues.

“The challenge with a marketplace is ensuring we determine the appropriate level of control that gives that flexibility to the business but doesn’t compromise any of our existing  preferred supplier  arrangement or bypass certain checkpoints of governance as a finical services organisation that we need to carry out.

“The key here is pitching it at the right level to ensure both the procurement team and the business get the solution they want.”

Are marketplaces the future of procurement? What are the pros and cons? We discuss in new Procurious webinar. which goes live on 13th November.  Sign up now (it’s free!)

Going To Market(place): The Future of Procurement

Are marketplaces the future of procurement? What are the pros and cons? We discuss in new Procurious webinar. 

In the late 1990s and early 2000s, B2B e-marketplaces were hyped up as the next big thing. For a while it seemed these were going to transform the lives of supply chain and procurement professionals forever. But they never quite took off perhaps because they were too far ahead of the technology and change-management requirements of the time. Indeed, most of the public and consortia marketplaces failed and of the 1,300 that were launched, fewer than 50 exist today.

Fast forward 20 years and, as consumers, we’re all enjoying, and heavily relying upon, the benefits of consumer companies with marketplace models such as Uber, Airbnb and Amazon.com. And whilst the B2B marketplace model might not be expanding with such speed, it is being applied to more diverse industries and with more success than previous models.

If you’re struggling to get a hold on your organisation’s maverick spending, concerned about disruption and risk mitigation within your supply chain or in serious need of a larger supplier pool, a marketplace might just be the answer to your prayers!

In our latest webinar, sponsored by Amazon Business, we explore the evolution of procurement marketplaces and their prevelance in organisations today, the pros and cons of using a marketplace and what the future holds for procurement if this trend continues.

Who is speaking on the webinar?

Molly Dobson, Head of Amazon Business Accounts – Amazon Business 

Molly Dobson is the Head of Enterprise Customer Success for Amazon Business UK. Prior to her role with Amazon Business, she was Head of Buying for European Business, Industrial, and Scientific Supplies and Category Leader for Amazon’s Luggage and Travel business. Molly has her MBA from London Business School and has also worked for Marks & Spencer, Coca-Cola, and Gap Inc.

Mary Hetherington, Director of UK Group Procurement – AXA

Mary Hetherington is the Group Procurement Director for AXA UK.  Mary has worked in the Insurance Industry for over 30 years managing a combination of Finance and Procurement functions. She has led several large multi-company third party programmes focusing on outsourcing, divestment and acquisition activity and GDPR. As part of a broader initiative to bring more agility to Procurement processes, Mary is currently focused on the Implementation of Coupa and an effective purchase to pay strategy.

What will be discussed in the webinar?

  • How can marketplaces help CPOs and their teams control maverick spend?
  • Are B2B marketplaces the future of procurement?
  • How can procurement teams incorporate marketplaces into their business strategy?
  • Why are some procurement professionals reluctant to adopt marketplaces?
  • The evolution of marketplaces and their prevalence in society today

How do I register for the webinar?

Registering for Going to Market (place): The Future of Procurement couldn’t be easier (and, of course, it’s FREE!)

Click here to enter your details and confirm your attendance. We’ll send you a email with a link to the webinar platform in the run up to the event.

I’m already a member of Procurious, do I still need to register?

Yes! If you are already a member of Procurious you must still enroll to access the webinar. We’ll send you a email with a link to the webinar platform in the run up to the event.

When is it taking place?

The webinar takes place on 13th November at 11am GMT. Sign up or log in here and we’ll be in touch ahead of the event to provide details on how to join the webinar live.

Help! I can’t make it to the live-stream

No problem! If you can’t make the live-stream you can catch up whenever it suits you. We’ll be making it available on Procurious soon after the event (and will be sure to send you a link) so you can listen at your leisure!

Can I ask a question during the webinar?

If you’d like to ask one of our speakers a question please submit it via the Discussion Board on Procurious and we’ll do our very best to ensure it gets answered for you.

Going to Market (Place) : The Future of Procurement goes live on 13th November. Sign up now.