Recently I was talking with Mayya Lihovodov, VP Sales and Marketing from Israel. And she has given me few advice on Procurement savings for SME.
Mayya is a part of Tenderoom team – the new Procurement service for small and medium-sized enterprises (SME). Tenderoom is focusing on the commodity products, like office supplies. By using the services like Tenderoom, SME’s benefit from the group buying power and ensure cost reduction that they would never get from scouting on their own.
Procurement challenge #1 for SME
If the small company doesn’t have the person dedicated for procurement job – there is a big risk of the things being forgotten. As a result, purchasing is happening spontaneously. And companies are losing a decent amount of money just because of this hurry and being scattered.
Does this sound familiar to you? Honestly I was observing search situation not only in small and medium-sized enterprises. Ad lib tenders irregularly happening even if the company has a decent purchasing or procurement Department. Especially if we talked about indirect purchasing. And in such instances – group buying is a great solution to secure low prices for your short time tender.
Group buying concept
Group buying concept is very popular nowadays. Especially in B2B area you can achieve significant price reductions for organizations, as well as provide suppliers with an optimized sales channel. The algorithm developed by special platforms like Tenderoom can cut purchasing expenses by at least 25%.
How Does it Work? The platform collects the orders and merges “shopping lists” of multiple organizations. And then opens a tender on this big merged order. The algorithm takes into consideration multiple parameters to ensure the customer the lowest price quote possible.
And of course such platform is quite useful for suppliers as well! Because they are happy to pick the bundle instead of a number of smaller orders.
Connecting the service providers and customers in one online platform is not a new idea in itself. AirB’n’B, Uber, Alibaba, Amazon… There are many successful platforms in many sectors. And I trully believe that this is the way we should also choose for Procurement.
Use the Group buying concept, and leverage it to your favor! It is the “Win-Win” in its best!
P.S. Get in touch with Mayya Lihovodov in LinkedIn. And feel free to ask her your questions about Tenderoom and about the group buying concept!
P.P.S. And don’t forget to listen to the full interview!
Procurement expert and coach at Future Procurement
You can learn more about Procurement and Supply Chain Management at our web-site www.futureprocurement.net