Online marketplaces are being used more frequently as part of the procurement function in companies and are a perfect example of how technology is not only enhancing, but also streamlining the way business is done globally.
In last month’s SmartProcurement, Anita Carolus-Opperman, Nedbank Corporate Card National Sales Manager, highlighted the new trend of using online marketplaces and e catalogues, and how this use further streamlines the procure-to-pay (P2P) process when implemented with a P Card.
Online marketplaces have existed for over 10 years, but are now becoming more accessible, less costly and easier to implement, and are, therefore, an integral part of business in a wide range of companies.
What is an online marketplace?
An online marketplace is an e-commerce website on which company buyers can purchase goods and services from approved suppliers in a controlled environment. When a company decides to utilise a marketplace, its suppliers can load their catalogues on the website. The company’s buyers can then purchase approved goods and services from the catalogues and pay with a P-Card.
Furthermore, it is possible for companies to view all suppliers on the online marketplace and compare existing suppliers with potential suppliers, which makes it a great platform for enterprise development by exposing small suppliers to companies they would not have access to otherwise.
The following critical components need to be considered by the company to ensure value and the success of an online marketplace:
• A marketplace should consist of the right buyers and suppliers.
• A banking partner should enable the client to achieve success by providing the right tools for an online marketplace such as a P-Card solution, integrated acquiring solutions and data delivery.
• An expense management solution, hosted internally or online, to ensure that all purchases are allocated correctly.
• A data feed to ensure that the purchasing transaction data from the marketplace gets integrated directly into the company’s ERP system.
Online marketplaces are becoming an important part of strategic procurement, and next month Nedbank will examine what to consider and how to choose the right online marketplace to ensure your company gets the most benefit out of it.
Nedbank has more than 15 years of experience setting up P-Card solutions to meet the most complex needs of clients using purchasing cards. For more information on how your company can benefit from a P-Card programme and where online marketplaces will fit into your company send an email to Anita Carolus-Opperman at AnitaCarolusO@nedbank.co.za
