E-procurement solutions provider M-Web CommerceZone has introduced Preferential e-Procurement for the small and medium enterprise (SME) market.
A statement issued yesterday says this solution enables SMEs to take advantage of the cost savings, process streamlining and broad-based BEE scorecard boosting benefits inherent in the solution, while reducing the implementation time and set-up costs.
M-Web CommerceZone focuses on indirect spend, or spend on goods and services that do not end up in the product or service delivered to the customer.
An example used by CommerceZone is of a law firm that would consider the purchase of legal books as direct spend, but the purchase of stationery, office consumables, courier services, marketing merchandise and even coffee as indirect spend.
Andr'e Muller, business development manager at M-Web CommerceZone says, "Indirect spend is often random and as a result there is less invested in ensuring that the company is getting the best price or the best product. Our e-procurement solution takes the haphazardness out of indirect spending and, as a result, saves money."
Until recently it was only larger organisations that could benefit from M-Web CommerceZone`s efficient management of the procurement process but with the latest offering the solution has been extended to smaller companies with an annual turnover of between two and twenty million.
"If your company has an indirect spend of more that R10 000 a month and this constitutes more than five percent of your monthly turnover, then you should give us a call. The solution will ensure a boost in profitability and actually pay for itself within the first six months," Muller says.
CommerceZone says the benefits of the SME offering extend beyond cost saving. One key advantage for smaller organisations is M-Web CommerceZone`s ability to contribute to client companies` balanced BEE scorecards via the introduction of broad-based BEE suppliers.
Muller says, "Often scorecards are boosted by up to 20% overnight and this is significant to SMEs that are grappling with the impact of BEE charters currently being laid down by government."
In addition, Muller says CommerceZone offers greater efficiency and managerial control of the procurement process. Traditionally, smaller organisations do not have the time, skills or critical mass to implement strategic procurement procedures, manage supplier contacts and request lower prices.
Muller believes that by working with M-Web CommerceZone, SMEs will be able to take advantage of the exchange`s collective buying power and experience in procurement to improve their procurement procedures and leverage supplier relationships to better manage their cash flow.
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