Guy Clapperton 

Make e-procurement work for your business

Businesses can save money in many ways, but the easiest, suggests Guy Clapperton, is by buying online
  
  


Nobody's accusing anybody of wasting money, but when a recent survey says that fewer than four out of 10 SMEs (small to medium enterprises) use technology for procurement of business items, there's got to be something skewed. Basically, if you're not looking on the web for the best prices then there's a possibility - not a certainty by any means - that you're paying too much for things.

The survey, conducted by is4profit.com, suggests that only 37% of companies with 200 or fewer employees use the internet to buy according to their business needs (companies with 50-60 employees used the internet the most). The things that those bother to buy include IT hardware, software and travel.

The authors of the report thought the figures surprisingly high, which, given the conservatism of the small business sector is probably reasonable enough, but it does mean that just over six out of 10 companies are missing the chance to save a few pennies. Sometimes this is because they don't know where to start. All of which is a bit of a shame, because starting is as simple as firing up a web browser and entering a search for whatever it is you need to buy.

If you prefer to take a less random approach then it's worth investing a small amount of money in one of the many internet guide books around; we're bound to say that the Guardian's guide is about the best, although other listings publications are around. These should guide you to some of the websites of suppliers who specialise in your area.

But e-procurement needn't stop there. As well as people who have formalised, professionally set-up e-commerce sites, there will be those who sell items by watching the newsgroups for people with needs that match the goods they supply. (Newsgroups are discussion areas for numerous interest groups; your email program will almost certainly be able to get at them through the internet.)

It's advisable to exercise caution at first when seeking goods in this way; you might find a superb and reliable supplier first time around, but let's be honest, someone approaching you on the strength of a posting in a newsgroup could be anybody. Some of the closed conferencing systems run by ISPs, for example Compuserve's UKProfessionals forum or Nextra's own.business conference, have slightly more regulated environments.

Where possible it's always best to monitor the messages being exchanged between existing members first; if there are any bad suppliers around someone will mention it.

The effect should be that you'll find the best price on a given product whenever you need it. Hundreds and indeed thousands of pounds can be saved on major purchases, and as long as the time spent finding them doesn't cost more than the saving then every business should consider the net as a marketplace.

There are concerns, of course, and you'll want to be sure that your details and credit card information is secure; always make sure that the page on which you eventually enter your details is secure: that it has https as the first letters of its address rather than plain http, and a picture of a padlock in the bottom right hand corner if you're using Internet Explorer.

Remember, though, that whatever information you send is as secure as the diligence of the person receiving it; feel free to ask the supplier about its internal security policies just as you would any other.

Buying from the internet can be great, but remember you're doing the online equivalent of walking into a pub and shouting "anyone got any [goods of your choice here]" - it's only sensible if you've worked out who's who first. Security aside, there can be good reasons for not buying on the internet.

If your company is starting up and has yet to get a credit or debit card, then buying from some websites is about as much fun as having your teeth pulled, through your nose, with no anaesthetic. You might want local suppliers only, either on principle or because you want the flexibility to visit them in person if they can't deliver and you have an urgent need. But for a number of commodity products it remains a serious option to save time and money.

 

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