Three ways in which B2B marketplaces are set to reshape procurement’s relationship with the business

The use of B2B marketplaces is growing. With a promise to deliver greater insights into spend and allow for more seamless purchasing across the organisation, they will open up new opportunities for procurement to drive value and influence across the business

In early October 2019, Amazon Business hosted its first ever Amazon Business Exchange (ABX) in London. The event provided 500 procurement, finance and supply chain leaders the chance to come together in an open environment to listen and learn about how B2B marketplaces are shaking up procurement and what the future might look like for the function.

Todd Heimes, director of Amazon Business Europe, set the tone of the day by highlighting the opportunities that are open to procurement. Armed with both new technology and deeper insights into data, B2B marketplaces give the function the chance to collaborate on a greater level with stakeholders and deliver improved business outcomes. 

“At Amazon Business, we’re excited to see procurement teams enabling more modern ways of working, driving greater employee and organisational productivity across the board and improving operating effectiveness.,” he said. Todd Heimes.

How will these marketplaces deliver that? In three ways.

1)    Freeing up resources and time

Automated and mobile approvals within B2B marketplace can free up time for buyers and category managers and allow them to focus on more strategic initiatives around sustainable sourcing, risk management and innovation. These value-adding activities can help the function become a more trusted advisor in the business.

2)    A handle on the tail

B2B market platforms typically provide greater visibility into spend with the ‘tail’. A notoriously difficult area of spend to get under control, B2B platform allow users to view and organise spend by either individual or purchasing group.

This represents an opportunity for procurement executives to secure control over an area of spend that has long been labelled as “rogue”. It also puts the function in a position to educate stakeholders on spend behaviours and make improvements, which will ultimately build trust within procurement. 

3)    A Procurement rebrand – making it easy to do business

Procurement Leaders CEO Nandini Basuthakur hosted a panel discussion during the event on how procurement functions have successfully begun using B2B marketplaces in their own teams. Siemens’ head of supply chain management, Dietmar Harteveld, shared the challenges he faces as the company undergoes the largest transformation in its 170-year history. Harteveld said he sees Amazon Business as an opportunity to improve the experience of his internal customers – customers want to use the same tools in the workplace that they use at home he asserted.

Amazon Business’ Heimes also urged attendees to push forward with its transformation as fast as they possibly could. Things are changing so fast and if the function wants to truly tap into the opportunities that exist and deliver that competitive advantage to their businesses they needed to move quickly.