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e-P4 Supplier Adoption: a BuyIT Workbook:
Getting ready for e-Business


This workbook has been developed to assist purchasing organisations work with their suppliers with whom they wish to trade electronically.

Typically, a purchasing organisation who is implementing an e-Procurement programme will have developed a business case, achieving which will depend on suppliers providing and maintaining electronic catalogues and possibly responding to electronic tenders and online auctions.

Implicit therefore is the requirement that suppliers are willing, ready and able to respond appropriately - but the reality is that all e-Procurement programmes which require suppliers to change the way they deliver content and communicate with the purchaser are having difficulty persuading them to adopt e-business processes and technologies.

The materials in this workbook were developed in order to test the proposition that suppliers need more than persuasion - they need to understand what e-business is and how it applies to them before they can respond. Some Sections (such as Content and Catalogue Management) are also covered in greater detail in other Workbooks or Guidelines.

The implications for a supplier who responds to his customer's demands to trade electronically without this understanding can be disastrous: he may win business but will find himself with incremental costs (a new channel to market, the need to bring in new skills and processes) and increased pressure on response expectations and margins.

The workbook is organised into six sections:

 

Introduction - How to use this workbook

 

Section 1: e-Business - Why an e-Business strategy is needed

 

Section 2: The e-Business Models - An overview of e-Marketplaces and the e-Business processes and a look at the benefits of each to suppliers

 

Section 3: Content and Catalogue Management - An overview of this complex and often mismanaged aspect of e-Procurement

 

Section 4: Assessing "Willingness" - Introduces a self-assessment tool to enable suppliers understand the relevance of e-business processes to their organisation

 

Section 5: Assessing "Readiness" - Introduces a self-assessment balanced scorecard tool to help suppliers to identify critical strengths and weaknesses in their organisation and customer relationships

 

Section 6: Assessing "Ability" - Taking the initial steps towards an e-enabled trading partner relationship

  Supplier Adoption - Executive Overview

Input to the Workbook - the BuyIT B2B Supplier Workshops

Four workshops were held to pilot the materials, involving four 'host' companies (London Borough of Newham, Rolls-Royce, Shell, Taylor Woodrow, GuinnessUDV and Prudential) and 130 of their suppliers.

The feedback was encouraging:

The day was considered a very worthwhile exercise by all concerned, delegates and hosts. In particular the self-assessment tools in Section 4-6 were highly valued and generated important learning and dialogue.

As a result of the event, all the delegates said they had a better understanding of what e-business could offer them, and the event had changed their mindset.

Armed with more confidence, and largely as a result of finding from the workshop that they are on a par with their customers and/or competitors, many companies are planning and pressing ahead with e-business activities, and if anything are frustrated that they cannot go faster because of IT issues.

Although concerns remain among suppliers that "e" systems are simply there to drive down prices - and their profits - most recognise that they cannot avoid getting involved in e-business.

The series established that interactive workshops hosted by major purchasers for their suppliers not only helped the suppliers move towards take-up of e-business - it helped the purchasers towards a partnership trading relationship with their suppliers.