Amazon Business: The 2021 B2B E-commerce in Evolution Report
Amazon Business 2021 B2B E-commerce in Evolution Report shares valuable B2B insights and trends from US procurement professionals. Surveying 250 B2B buyers and 250 B2B sellers across industries and including organisations of all sizes, the report examines the rapid transformation of B2B e-procurement over the last few years.
The report offers valuable, actionable insights from influential procurement leaders for procurement leaders as they kick-off, or continue on their transformation journey.
E-procurement is no longer enough
“Our 2021 B2B E-commerce in Evolution report underlines the fact that simply leveraging e-procurement is no longer enough,” said Todd Heimes, director of Amazon Business. “Ultimately, we think that organizations have a significant opportunity to maximize e-procurement technologies that will help them overcome operational challenges that diminish efficiency and waste budget. For seller organizations, adapting to meet buyer demands will allow them to remain relevant with their B2B customers. At Amazon Business, we’re committed to helping buyers and sellers navigate the next chapters in their transformation journeys with our technology and expertise.”
According to the report, the global pandemic accelerated efforts to digitise procurement, with 38% of buyers reporting they made more than 50% of purchases for their organizations online in 2020.
Suggesting that smaller organisations where behind larger organisations in digitising prior to the pandemic, 56% small and-medium businesses (SMBs) said they more fully digitized their purchasing process due to COVID-19, compared to only 42% of enterprise commercial companies.
Procurement’s Top Priorities for 2021:
The report underscores the larger role corporate responsibility is now playing in procurement.
- Improving efficiency 40%
- Cost reductions 34%
- Improving sustainability in purchasing 39%
- Supporting local businesses within their community 37%
- Notingly, 46% of commercial business respondents reported supporting local businesses as a top priority and 39% of comercial businesses reported supplier increasing diversity as a priorty, indicating the growing importance of corporate socifal responsibility in the commercial sector.
- 83% of buyers say they plan to increase their purchasing budgets reserved for Black and minority-owned businesses in 2021, of which, 48% are planning to increase their budgets by 20% or more.
Per industry, the report shows the top priorities for 2021 are:
Education - Reducing costs (48%)
Government - Supporting remote work (50%)
Healthcare - Increasing efficiency (52%)
Commercial - Improving sustainability (49%)
Healthcare is a high regulated industry with stringent product specifications, so it’s not surprising that 32% of healthcare respondents said their top pain point in 2020 was accessing suppliers that could meet their needs. In case you missed it, we spoke to Stephany Lapierre, Founder and CEO of Tealbook, about this very same issue, and how their supplier intelligence platform can help.
“We built a beautiful, easy to use interface that allows our customers visibility into the vendor master and to gain transparency and visibility across all their suppliers. Reporting, supplier searches and other lightweight functionalities give employees the information they need to better manage things like supplier diversity and react more swiftly to changing conditions, increasing agility,” said Lapierre.
Allowing buyers to interact with the data efficiently and on a large scale, affords stronger outcomes. She offers Tealbook’s work in the UK as an example. In an effort to provide the UK with comprehensive supplier resources of PPE during the Covid-19 outbreak, working with the UK government, Tealbook added 56,000 new suppliers (mainly in India, UK and the US), 22,000 Good Manufacturing Practices for health care certificates and over 250,000 additional ISO certificates.
Critiqom land four-year multi-million-pound procurement deal
Critiqom, a Scottish-based communications business, recently announced its ground-breaking multi-million deal, which will see those accessing services through Scottish Procurement given the option to modernise their communications approach.
By providing an increased amount of choice in communications, the company says it will succeed in ensuring a reduced environmental impact linked to mail production.
The Opus Trust Communications company, which is accessed by the likes of local authorities, police, universities, central government, and other public sector bodies, insists that choosing a local supplier to aid in enhancing the efficiency of public sector communications would subsequently speed up its goal to go green.
“This is an opportunity to look at the bigger picture and to use our knowledge to accelerate change for public sector organisations in Scotland,” says Director at Critiqom, Gerry Crawley.
“We know that we can deliver great efficiencies and cost savings by encouraging the public sector in Scotland to adopt a new approach that embraces digital technologies.”
The tender also introduced a second lot, focusing on digital communications and hybrid mail, in an attempt to administer reduced costs for its customers. All services within the framework agreement will also be delivered in-house.
It seems the overall aim for the deal with Scottish Procurement lies with innovating and modernising the communications sector, resulting in lower prices and an increased focus on sustainability.
Who is Critiqom?
Based in Bellshill, Scotland, Critiqom supplies omnichannel solutions for companies, businesses, and organisations, all while claiming to provide innovation and drive engagement simultaneously with reducing the costs of its operations.
Its vision: to become the UK’s multi-channel communication service of choice. But how is it aiming to get there?
Critiqom insists that by spearheading customer communications with partnership and modernisation, they can achieve exceptional levels of service and choice delivered to their clients. By churning out consistently high-quality operations and by generating revenue with an emphasis on sustainability, it intends to achieve the reduced costs in communications that its clients are looking for.
Why sign the deal now?
Increasingly, more and more companies are being put under pressure to ensure their carbon footprint and sustainable strategies are aligned with, or surpassing, competition in their field. As attention is drawn to the climate and concerns arise over the sustainability of large companies in the future, the majority of businesses are battling with time to decrease their impact on the environment and ensure policies are put into place to show their progress.
Crawley states that, where possible, the company aims to provide as little distance as necessary between manufacturing and the recipient. The tender boldly claims it looks to help steer the direction in which organisations think and showcase how digitalising communications can only serve to benefit the economy and environment on a large scale.