In B2B, you need to maintain a good relationship with vendors and make an informed buying decision in order to stay ahead of the competition, which is especially true now in the wake of the COVID-19 pandemic.
However, it can be quite challenging as many B2B companies still use old and outdated methods when purchasing goods and services.
In this face-paced world, B2B companies need to take advantage of modern digital technology to manage vendors and mitigate risks. It will not only help them to easily procure goods and services but also build strong relationships with vendors.
Procurement professionals in B2B companies need to follow the trend of B2C software companies like Amazon and Netflix. They need to use vendor management tools to make the procurement process hassle-free and boost productivity.
In this article, we are going to discuss all the things B2B Supply Chain can learn from B2C software companies. But first, let’s start with a basic overview:
To engage with vendors in real-time and build a strong relationship, procurement professionals can follow the same mantra as B2C software companies. Here are the five things B2B companies can learn.
Relationship with Several Suppliers/ Vendors:
A non-business consumer has a relationship with multiple suppliers, i.e., cable provider, phone provider, newspaper provider, etc. A decade ago, consumers had no other option but to stick with local vendors or suppliers. However, with the advent of digital marketplaces, consumers can now have a relationship with suppliers and vendors from all around the world.
They use B2C software to software to manage the relationship with several suppliers around the world. Similarly, B2B businesses can learn from them and use digital platforms or technology to communicate and maintain a relationship with several suppliers and vendors all around the world. It will not only help them to get the best goods and services but also effectively manage all the different vendors at once.
B2C E-Marketplaces Centralise E-Procurement:
Today’s e-procurement experience resembles that of a consumer shopping on a B2C website. Buying clothes or booking travel doesn’t require the buyer to browse through dozens of websites. Consumers can simply use review platforms like Wirecutter and auto-billing software like Truebill to easily manage vendor relations and make payments.
B2B businesses can take advantage of e-marketplaces to easily compare the services of vendors and choose the best service online. These marketplaces also offer a central place for buyers and sellers to conduct business, thereby reducing operating costs and time. Whether you are a large enterprise or a small or mid-size business, eMarketplaces can simplify and streamline the purchasing process.
As a central platform, these marketplaces help B2B companies centralise their e-procurement, eliminating manual and time-consuming processes. In the long run, you will benefit by eliminating the need to spend time on manual research and development.
Use of B2C Software Technology for Vendor Relationships
B2B is getting more competitive, and it has become very difficult to maintain strong vendor relationships. As everything has become digital, B2B companies need to follow the same approach as B2C companies in order to maintain relationships with vendors. B2B businesses should establish strong vendor management practices.
This will encourage vendors to be satisfied with the services they provide and be more likely to partner with them for a long time. Instead of relying on leads and filling up forms to contact the vendors, B2B companies can use vendor review software to compare the services of the vendor and get in touch with them. It will help them to easily get in touch with the vendors in a single click and place an order, as well as check their credibility.
Account Payable Software for Managing Payments
Managing payments is another important responsibility of procurement professionals. They need to make payments as well as manage credit when procuring goods and services. This process can be quite taxing as they have to make payments manually. To make this process easier, professionals can use account payable software.
Using Account Payable software such as bill.com for B2B vendor relationships can improve your efficiency and reduce costs. You can schedule automated payments and receive notifications when the time comes. Even better, you can have the system set up to automatically pay your vendors.
The benefits are numerous, and they will make your business and your vendors happier. First, you can reduce the number of errors you make by incorporating automation into your accounting process. Using this type of software will help you keep track of every transaction, including the time it takes to reconcile a bill.
Vendor Relationship Management Tools and Software
Vendor relationship management tools can help you manage the contract and review process more efficiently. If you want your relationships with vendors to be as positive as possible, you should work with companies that have relevant expertise in the industry, meet your standards, and align with your goals and values.
After all, mistakes made by vendors can damage your reputation, so you should maintain quality and standards as well as clear roles and responsibilities. Ideally, you should implement a vendor relationship management tool. It can help you track, manage, and report on your vendor relationships.
A vendor relationship management tool, like Parq, can streamline the process and help you keep track of your relationships with vendors. It can also simplify the procurement process for large-scale projects. It can also help you track payments, contracts, and expenses. This type of software can be an integral part of your work ecosystem.
In a world where the competition is cut-throat, procurement professionals in B2B companies need to step up their game and learn from B2C companies, or else they will fall behind.
Biography:
Walker Ryan is the co-founder and CEO of Parq, a company pioneering vendor relationship management in asset-intensive industries. He is excited to see how the supply chain will continue to evolve, especially with COVID acting as a catalyst for industry change.