Date post: | 21-Jan-2018 |
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The Big Scary Truth:
YOU STRIKE FEAR IN GREAT POTENTIAL PARTNERS
THAT HAPPEN TO BE SMBs. WE CAN HELP.
Ed Edwards – Audience Outreach Manager, THOMASNET.com
Paige Dichiria-Bowen – President, Seelye Acquisitions
Paige Dichiria-BowenPresident
MEET OUR SMB
Inclusion in Sourcing
Events
How often do you include small- and medium-sized businesses
(SMBs) in your sourcing events when seeking new suppliers?
Respondents were large buyers (with 500 or more employees)
Source = THOMASNET.com 2017 Research
SMBs Win Business
Source = THOMASNET 2017 Research
Respondents were large buyers (with 500 or more employees)
How often do you award a bid to an SMB?
2017 TOP 10
SMB Business
Issues
Source =
Relate to business
growth & new
customers
2017 TOP 10
SMB Business
Issues
Source =
Relate to business
growth & new
customers
2017 SMB Growth
Strategies
Source = Wasp Technologies 2017 State of Small Business Report
40%
Improve existing
customer
experience
& retention
32%
Invest in new
customer
acquisition
activities &
methods
30%
Expand
into new
Markets
Fortune 100Supplier
Initial RFX Event Using
THOMASNET.com
26Supplier
Responses
219# of Suppliers
in Event
• Why SMBs matter – the buyer’s view
• How SMBs view new opportunities
• Recommendations & Strategies
• Q&A
OVERVIEW
Why SMBs matter – the buyer’s view
of US manufacturers
are between 5-99
employeesSource = 2014 US Census Data
52%
SMBs are prevalent
41%
18%
15%
19%
5%1%
0-4 employees
5-9 employees
10-19 employees
20-99 employees
100-499 employees
500+ employees
MANUFACTURING
SMBs are expecting
growth
Source = Wasp Technologies 2017 State of Small Business Report
Source = THOMASNET.com 2017 Research
2017 THOMASNET.com Survey of Buyers
ResponsivenessTop Evaluation
Factors
SMB
Advantages
Top Evaluation
Factors
Source = THOMASNET.com 2017 Research
Respondents were large buyers (with 500 or more employees)
Quality & Reliability
4.6 4.4
Customer Service
4.4
Competitive Price
4.3
Responsiveness To RFX
4.2
Financial &
Operational Stability
Competitive
Price
Fast Turnaround
Times
Ability To Provide
Customized Solutions
SMB Advantages
Source = THOMASNET.com 2017 Research
Respondents were large buyers (with 500 or more employees)
50% 45% 45%
Responsiveness RATE
COMPARISON
Source = THOMASNET.com 2017 Research
Respondents were large buyers (with 500 or more employees)
Responsiveness %
Source = THOMASNET.com 2017 Research
Respondents were large buyers (with 500 or more employees)
ResponsivenessFAILURE
Source = THOMASNET.com 2017 Research
Respondents were large buyers (with 500 or more employees)
ResponsivenessTIME
Source = THOMASNET.com 2017 Research
Respondents were large buyers (with 500 or more employees)
Responsiveness
The larger the buyer, the longer
the expected response times
The larger the buyer, the greater the
percentage of SMBs that failed to respond
One in four buyers indicated supplier
response rates are under 25%
Surprises Both SUPPLIER LOCATION
& INNOVATIVENESS ranked
lower than in prior research
Poll the Audience
Responsiveness Location Innovativeness
How SMBs view new opportunities
UNDERSTAND WITH WHOM
YOU ARE WORKING
Responsiveness
Source = THOMASNET.com 2017 Research
Respondents were SMBs (with 500 or fewer employees)
How often do you respond to RFX from large buying organizations?
Why they WILL
respond
Source = THOMASNET.com 2017 Research
Respondents were SMBs (with 500 or fewer employees)
Why do SMBs respond to RFX from large buying organizations?
Why theyDO NOTrespond
Amount of work to create and submit the bid vs.
perceived chance of winning
35.6%
Unclear technical requirements 29.0%
Insufficient time to respond 22.8%
Cumbersome process 22.8%
No way to ask questions or obtain specific details 21.8%
Source = THOMASNET.com 2017 Research
Respondents were SMBs (with 500 or fewer employees)
Why don’t small suppliers respond to RFX from large buying
organizations?
Why theyDO NOTrespond
Unworkable payment terms 19.8%
Other (please specify) 16.8%
No clear points of contact 16.5%
Insufficient resources to submit a quote 15.5%
Never received a bid package from a large buying
organization12.5%
I would not have the capacity to deliver 10.6%
Lack of understanding of the bid/award process 10.2%
Source = THOMASNET.com 2017 Research
Respondents were SMBs (with 500 or fewer employees)
Why don’t small suppliers respond to RFX from large buying
organizations?
PERCEPTION:LONG ODDS
PERCEPTION:BUREAUCRATIC
PROCESS
PERCEPTION:
RISK BEING TIED TO ONE
CUSTOMER
CustomerBase
Source = THOMASNET.com 2017 Research
Respondents were SMBs (with 500 or fewer employees)
What percentage of SMBs customer base is made up
of large buying organizations?
SMBs LARGE COMPANY
PERCEPTION:
LONG PAYMENT
TERMS
REALITY:
LONG PAYMENT
TERMS
Source = Joint Small Business Credit Survey Report, 2015 Federal Reserve Banks
of New York, Atlanta, Boston, Cleveland, Philadelphia, Richmond, and St. Louis
REALITY:
LONG PAYMENT
TERMS
Recommendations & Strategies
TOP TIPS FOR
WORKINGWITH SMBs
BE TRANSPARENT in your process
SIMPLIFY your process
HUMANIZE your process
MITIGATE RISKS of long payment terms
Offering
Financing
Options
– REVERSE
FACTORING
Financial Institution
SupplierBuyer
2. Invoice Approval 3. Factor Pays
Invoice net of
financing fee
paid by Supplier
1. Invoice
4. Payment to
Factor 90+ Days
Fortune 100Supplier
Initial RFX Event Using
THOMASNET.comCorporate Edition
26Supplier
Responses
219# of Suppliers
in Event
Fortune 100Supplier
Most RecentRFX Event Using
THOMASNET.comCorporate Edition
70Supplier
Responses
142# of Suppliers
in Event
How
THOMASNET.com
can help
Our THOMASNET.com FREE Platform
• Access to over 500,000 Commercial & Industrial
suppliers in North America
• Qualify and shortlist by location, quality certifications,
and ownership
• Evaluate and compare suppliers side-by-side
to understand their capabilities
• Access supplier risk reports
• Send RFI/RFQs to multiple suppliers at once
Questions & Answers
YOUR FEEDBACK IS
IMPORTANTPlease take a few minutes to complete this brief
survey.
Survey link:
www.instituteforsupplymanagement.org/gh17
or Scan the QR code on your smartphone.