Digitization makes purchasing more efficient across all industries . An online store like Amazon Business helps companies streamline processes , control costs and make better buying decisions . The tail spend - purchases outside of negotiated procurement contracts - in particular can be managed in a more cost-effective way . Small product orders account for up to 20 percent of a company ’ s expenditure but make up 80 percent of suppliers .

With digital procurement , managers are contributing to their company ’ s success by saving costs . Optimizing search , approvals , order processing , and payments have a potential to cut non-material costs significantly in every order . In contracted categories , as e . g . IT accessories , office and MRO supplies , savings can be realized due to lower unit prices , e . g . about 20 percent in IT peripherals according to the recent Deloitte study “ COP response to combat Covid-19 ”.

Another advantage is that employees know Amazon from their private shopping experience and intuitively find their way around Amazon Business . They are enabled to purchase goods themselves - critical product groups can be excluded , and approval processes applied . Amazon Business can be easily integrated into the existing ERP or procurement systems .

B2B online stores are a key element of digital procurement . Companies benefit from lean processes , lower process costs , competitive prices , and volume discounts . For purchasing managers , B2B online stores should therefore be a key factor with regard to designing their procurement strategy .

LEARN MORE