cancel
Showing results for 
Search instead for 
Did you mean: 
About the Author
Marisol Buczynski Buchanan, CEO of Premikati, Inc. is passionate about procurement, specifically in the SMB space. She has been involved in the procurement industry in either strategic or executive roles for almost two decades. Most recently, Marisol and Premikati, have shaken up the industry by offering a version of Ariba Guided Buying and Invoicing to SMBs - providing access to the same robust software as large enterprises that is easy to implement, scalable, and best of all, simple to use. Marisol also serves as part of SAP Ariba’s Partner Advisory Board for the Procurement as a Purpose Workstream as well as sitting on the National Small Business Association Leadership Council. In her free time, Marisol is a self-taught chef and avid gardener.

SMBs and Digital Transformation: Is Your Company a Laggard or a Front Runner?

Occasional Member - Level 3
2 0 195

SMBs have long been seen as being “behind the curve” in terms of transformative businesses processes. This unfortunate placement puts slow adopters at a disadvantage, blocking access to cost-saving solutions and process optimization.

 

With all the advantages that digital transformation promises, you might wonder what the hesitation is all about. It could be due to one or more factors, including:

 

  1. Lack of awareness. In small businesses, there often isn’t a dedicated technology officer to inform leadership of new and helpful tools. Unless somebody within the organization has an interest in pursuing this line of action, the company will likely continue operating as they have in the past, gradually losing market share.
  2. Cost. Not every business is a good candidate for an Enterprise Resource Planning (ERP) system, as these systems are often designed for large businesses and not priced for a smaller operator.
  3. Lack of manpower. Digital transformation does not happen overnight. Identifying the right technology, migrating systems, training staff, and generally managing change is a time-consuming and sometimes complex process. Many businesses simply do not have in-house staff who are trained adequately enough to see it through, and hiring an outside company isn’t always possible due to budget constraints.

Procurement solutions: turning laggards into front-runners

 

Even if your digital transformation is already underway, some departments may be overlooked or put on the back burner while more critical areas are addressed. Procurement is often one of those overlooked departments, but it is one of the easiest to gain control over—and this added control can help you lower costs and gain competitive ground.

 

Procurement is also possibly the largest area of total spend over which SMBs do not have complete oversight. In most cases, there will be several individuals spread out over various departments who are making purchases covering everything from office supplies to raw materials.

 

In the enterprise, these tasks are centrally managed through the ERP. Buyers can access a centralized list of preferred suppliers, leverage an integrated PO system for efficient financial reporting, and stakeholders are provided with complete transparency into all procurement activities.

 

How can SMBs take advantage of enterprise approaches to save?

 

The good news is, the ability to easily manage spending analytics and choose from a catalog of diverse suppliers is no longer the sole realm of the enterprise.

 

The solution: digital marketplaces

 

Digital marketplaces can help you accomplish all of this, offering affordability and scalability with the simplicity and security of a cloud-based platform.

 

B2B digital marketplaces can feature up to tens of millions of items from fully-vetted and sustainable suppliers. SMBs can access features like rock bottom pricing and leverage built-in spending control, driving value straight back to the bottom line.

 

Benefits of digital marketplaces

 

There are many benefits of digital marketplaces, including:

  • Control spending across multiple departments and buyers
  • Reduce time spent on ad-hoc buying processes from days or weeks to just hours
  • Reduce costs up to 35 percent overall
  • Receive cashback rebates of up to one percent on your P-Card for all purchases

In conclusion, if your company is lagging the pack in digital transformation, even small changes can deliver significant results. Connecting your procurement department with a custom B2B digital marketplace is one place to start.

 

 

Premikati is currently offering a free one month trial of the Premikati Marketplace for SAP Business Exchange members – learn more here.