Taking e-procurement to the next level

E-procurement is booming: companies are increasingly turning to online platforms to purchase goods and services, driving sales to over $1 trillion in 2022. This is no surprise – e-procurement provides speed, accuracy and a competitive advantage in today’s turbulent marketplace .

However, e-procurement still only accounts for 7.4% of all B2B sales. Although 91% of purchasing teams prefer to buy online, it is clear that e-procurement alone is not enough.

The future lies in connected commerce, a strategy that seamlessly integrates e-procurement with e-commerce solutions. This ensures a more efficient and resilient shopping experience that spans the entire digital shopping process.

The power of connected trade

The advantages of e-procurement are obvious. While e-procurement is undoubtedly a powerful tool, it is only one side of the B2B coin. Buyers and sellers, despite sharing the common goal of fast and successful transactions, often have very different needs and workflows. As a result, even the most advanced e-procurement system may fail to provide a seamless and mutually beneficial sales path – unless it is combined with a digital commerce platform that can create an end-to-end purchasing experience that satisfies stakeholders on both sides of the transaction.

This approach has been a game changer for companies like Electrical Equipment Company (EECO), a mid-sized electrical equipment distributor that recorded a fivefold increase in revenues after integrating its customers’ digital purchasing systems with its own e-commerce platform.

Here are the benefits of connected trading for both buyers and sellers:

• Streamlined processes: Imagine managing orders and invoices much faster. Connected commerce automates these tasks, eliminating manual data entry and reducing errors. A recent study by TradeCentric showed that organizations can act up to 80% faster through automation, freeing purchasing teams for more strategic tasks such as supplier relations and contract negotiations.

• Data synchronization: Connected commerce ensures that critical information such as inventory levels, orders and invoices is consistent and up-to-date across all systems. Say goodbye to data silos and manual reconciliations, and hello to reduced delays, discrepancies and financial risk.

Overcoming integration challenges

Combining e-procurement and e-commerce is not without its obstacles. Integrating disparate systems, workflows and data formats can be complex, especially for organizations using legacy or custom solutions. This often requires technical expertise in data mapping, API integration and security protocols, which can be costly and time-consuming to acquire.

So how can companies overcome integration challenges and reap the benefits of connected commerce?

The key is to choose a robust and flexible e-commerce platform designed specifically for B2B needs. Look for out-of-the-box extensions and integrations for core features like printed catalogs, order automation, and electronic pricing. A strong partner ecosystem and internal expertise are also key to simplifying the integration process and reducing costs.

The EECO success story is an example of this approach. By implementing a consumer-style online store with enterprise-grade catalog integration, they meet the needs of both large and small buyers. Their chosen digital commerce solution, with built-in B2B capabilities and a strong partner network, ensures a seamless and efficient shopping experience for all customers, regardless of their size or existing systems.

The connected future of B2B commerce

The future of B2B purchasing is connected. By combining e-procurement and e-commerce, companies can create a smoother and more efficient shopping experience for everyone involved. It’s about breaking down barriers and building stronger relationships with customers.

Of course, there are challenges, but with the right approach and tools, connected commerce can open the door to new opportunities and development. It’s time to embrace this change and lead in the evolving B2B world.

Yoav Kutner is the CEO and founder of the company Oro Inc.