Did you know nearly 6 million small businesses existed in the UK at the start of 2019?
If you’ve taken the plunge yourself , you’ll know that keeping a small business afloat can be a massive challenge. Larger more established organisations often enjoy a much bigger amount of working capital, plus technologies and processes to match. For smaller business owners it’s all about reducing costs and increasing profits – which is where e-procurement really comes into its own. If the opportunity arises to work with a capable supply chain partner willing to adopt automation technologies whole-heartedly, then it’s well worth getting on board. In our experience the positive effects of e-procurement on your small business will soon become apparent.
E-procurement uptake amongst smaller businesses
Just like larger organisations, small businesses can benefit from some important e-procurement advantages, like more strategic processes, higher profits and reduced operational costs. However, smaller businesses are likely to have much less money at their disposal as well as more limited capital, which can often make e-procurement seem like a struggle. The good news though is that current e-procurement trends, in addition to other factors like new e-procurement automation software and global supply chain growth, have meant that smaller businesses can adopt a broader range of e-procurement systems to suit them.
If you’re a small business interested in e-procurement, you’ll want to seek out a partner that is well versed in the needs of smaller organisations. A procurement analyst or specialist will also be a vital addition to your team as you make the transition to automated processes from manual ones.
Growing your business and moving it forward
The wide range of benefits (not least reduced transaction costs) that e-procurement brings small businesses offer an excellent opportunity to scale up and grow. As you begin to remove admin-heavy processes and move towards more streamlined automation systems, your attention can be turned to other projects that can also boost profits and growth. For instance, if your business is reliant upon card payments, you can leverage your sales to achieve preferential rates or deals from your credit card provider. Your profits can also be used for investing in technologies to enhance your competitive advantage within the market.
In comparison to bigger organisations, small businesses tend to need to be careful when it comes to taking on new technologies – mainly due to limited resources and capital. However, as e-procurement technologies have become more innovative and diverse, smaller businesses are increasingly able to utilise automation software and set up supply chains. Whilst the adoption of e-procurement still requires a certain amount of expenditure, for small businesses the investment is typically very worthwhile. After all, improved scalability means growth – and growth means profit.
Speak to the team at Darian
If you would like to talk to us about anything covered in this article, please do speak to our friendly expert team on +44 (0)1858 433096 or use our contact page. Spanning over three decades, our background lies in manufacturing and engineering in particular. We can guide you through all aspects of low cost sourcing and global supply chain management, so why not see what we can do for you today.