Tom Roberts, CMO at TradeCentric, sat down with the B2B eCommerce Association to discuss the rising demand for eProcurement and integration capabilities, as well as the importance of investing in B2B Connected Commerce to meet the evolving needs of customers.
A summary of the conversation follows.
B2B eCommerce Association: eProcurement systems are on the rise. Can you share any statistics and explain why they are becoming more popular?
Tom Roberts: Absolutely. A recent buyer-focused survey from Grainger revealed that 87% of their customer respondents utilize an eProcurement solution. Additionally, Digital Commerce 360 reports that in 2023, sales via the eProcurement channel increased by 18% year-over-year, indicating a substantial rise in the adoption of digital procurement solutions.
Many B2B suppliers don’t fully understand why buyers are investing in eProcurement, given the costs and the challenges of enterprise change management. To provide context, CFOs and Chief Procurement Officers (CPOs) are looking for:
- Spend Visibility and Tracking: A top priority is ensuring the procurement team is compliant with purchasing policies, understanding spending patterns, and determining if spend is contributing to or eroding margins
- Leveraging Headcount: Leaders seek to drive purchasing efficiencies to avoid increasing FTEs to support spending in new categories
- Integration with Supplier Catalogs and Discounts: CFOs and CPOs are increasingly interested in solutions that allow buyers to access suppliers’ online catalogs and make purchases directly from their eProcurement systems
- Reduced Data Entry: eProcurement integration with eCommerce reduces the need for manual data entry into internal systems to create requisitions or POs
B2B eCommerce Association: What are the implications for companies selling to customers using eProcurement systems?
Tom Roberts: The initial requirement is to establish an excellent eCommerce storefront with a great search and buying experience. Integration won’t help if the eCommerce experience is poor. Once you have a solid shopping experience, the next steps include integrating purchase orders and invoices as well as ensuring data compatibility with systems like Coupa, which uses the cXML format for document transmission.
B2B eCommerce Association: What are the biggest differences between eCommerce and eProcurement?
Tom Roberts: Both involve online transactions but they each cater to different audiences. Suppliers use eCommerce systems for online transactions with buyers, which can include both businesses and consumers. eCommerce sites facilitate direct purchases from a company’s website and are used in both B2C and B2B transactions.
In contrast, buyers use eProcurement for B2B transactions to manage and automate their purchasing processes electronically.
B2B eCommerce Association: Are there specific industries moving faster in adopting eProcurement?
Tom Roberts: Yes. Industries such as life sciences, manufacturing, higher education, healthcare, hospitality, and property management are prioritizing eProcurement integration. On the supply side, industries such as manufacturing, distribution, and industrial goods are also adopting these solutions.
Digital Commerce 360 reports that B2B eCommerce is projected to account for 16% of all manufacturing and distribution sales this year, indicating a trend that will likely continue across other industries.
B2B eCommerce Association: Integration is crucial in B2B eCommerce. What are the core problems and business challenges related to integration?
Tom Roberts: There is a significant gap in understanding the capabilities and benefits of integration for both buyers and suppliers. Many companies consider integration only when prompted by a customer’s request rather than as a strategic initiative. Failure to offer integration capabilities could result in losing business to competitors, and you may not even realize it.
Another complexity is the decision between building integrations in-house or working with a specialized software provider. In-house builds offer full control but require substantial time, resources, and technical expertise. Scaling and maintaining these integrations can be challenging, so companies must carefully evaluate their resources, expertise, and technology requirements.
B2B eCommerce Association: Can you explain what B2B Connected Commerce means from your perspective?
Tom Roberts: B2B Connected Commerce bridges the gap between supplier eCommerce systems and buyer eProcurement or ERP systems through integration solutions such as PunchOut, PO Automation, and Invoice Automation. Key benefits include:
- Increased revenue through digital channels from existing buyers by providing an integrated shopping experience
- Attracting new customers, particularly larger enterprises with strict procurement requirements
- Enhanced efficiency, which accelerates the order-to-cash cycle
B2B eCommerce Association: How did PunchOut capabilities come about, and what benefits do they offer?
Tom Roberts: PunchOut emerged in the early 2000s as a solution for streamlining the B2B procurement process, pioneered by companies like Ariba (now part of SAP) and Oracle. Initially used for indirect goods and services, its applications have since expanded across various industries and procurement categories.
For suppliers, PunchOut capabilities can:
- Grow revenue from new and existing customers
- Enhance visibility among buyers
- Reduce time and effort required to build and maintain integrations
For buyers, PunchOut capabilities can:
- Enhance procurement compliance and control over spend
- Provide real-time access to negotiated pricing and accurate inventory levels
- Expedite the purchasing process and reduce manual input
B2B eCommerce Association: How are customers selecting integration platforms today?
Tom Roberts: Customers select integration platforms based on several key factors:
- Compatibility with existing systems to ensure seamless integration
- Robust features and functionality to meet specific integration needs
- Data visibility, security, and data privacy, prompting the choice of platforms with strong security measures
B2B eCommerce Association: What sets TradeCentric apart from other B2B commerce integration platforms?
Tom Roberts: TradeCentric has more than a decade of experience providing best-in-class integration and automation solutions. Key differentiators include:
- Security: We ensure data protection and security throughout our platform and integrations, evidenced by our ISO 27001 and SOC 2 Type 2 certifications.
- The TradeCentric Business Intelligence Portal: This portal provides real-time visibility into transaction and spend data, connection testing and troubleshooting, and comprehensive reporting.
- Reliability: TradeCentric has been a pioneer in B2B eCommerce integration for over a decade, serving enterprise customers like Volvo Financial Services, AutoZone, and GE Healthcare, with a proven reliability of 99.99% uptime for all solutions.
- Ease of Implementation: We’ve developed pre-built connectors for leading eCommerce and eProcurement platforms, making the integration process quick and efficient.
- Network Size: With more than 4,500 global companies in our network and 10,000+ active connections, our reach and accessibility are unmatched.
- Strategic Partnerships: We are connected to 75+ eCommerce systems and 150+ eProcurement/ERP solutions, working closely with industry leaders such as Salesforce, BigCommerce, Coupa, SAP Ariba, and more.
- Expertise: Our team has deep expertise in the eCommerce and eProcurement space, providing robust, credible, comprehensive, and proven project methodologies from initial onboarding to ongoing support and delivery.
