Tail spends: optimization through marketplaces
Tail-Spend Optimization through Marketplaces
Individual orders, orders with low volumes or even marginal requirements ("tail spends") regularly lead to maverick buying. Linking to marketplaces is a convenient solution - especially in view of the fact that it is practically unprofitable to offer every conceivable requirement of a company in catalogs sold individually.
Usually, free text orders come into play for tail spends or marginal requirements. However, these trigger an undesirable expense in purchasing (20.69 euros/BANF in the digital process according to a 2017 study by HTWK Leipzig in collaboration with Mercateo/Unite). A marketplace connection, on the other hand, ensures efficient, transparent buying: technically, it can be implemented via OCI (Open Catalog Interface) or API (Application Programming Interface). The difference lies in the purchasing process, among other things.
OCI Punchout: Leap into the webshop
OCI is a standard for exchanging catalog data. This allows product orders from external web catalogs to be integrated into the company's own purchasing process. In this process, the user jumps to the web store (i.e., he leaves the working environment of the e-procurement platform), compiles the shopping cart there, and this is then transferred to the ERP system and processed. This access to the external catalog is also known as punchout (for more on this topic, see our comparison of OCI punchout vs. content catalogs).
OCI or content catalogs - what is my optimal solution?
What advantages do OCI punchout or background search offer over content catalogs? And where do they show their strengths? Read our comparison!
Fully integrated OCI alternatives: Background Search and API
As of OCI 4.0, the product search can be carried out via the so-called background search. The user remains in his own system, a punchout is avoided. The search is even possible across several webshops. By means of API, the platform can also directly access external product catalogs (these can then also be individually negotiated, for example). In the case of a marketplace, this means a multiplication of the range of goods in one's own eProcurement environment at the push of a button!
- Background Search as of OCI 4.0
- Search across multiple webshops without punchout
- API enables direct access to external catalogs
- Marketplace multiplies offering of own eProcurement system
Simplified Accounts Payable: Single Creditor
Diversity in purchasing often results in additional work in accounting. The way out is the connection of a single creditor: In this case, only one invoice is issued, regardless of the number of suppliers, thus reducing the manual effort thanks to a single invoice template or invoice process.
We'd love to tell you how a marketplace connection successfully optimizes tail spends!
We inform you about your options and show you how a marketplace connection can advance your eProcurement.
Example of full integration: Unite
While Mercateo's Spotmarket (part of Unite), with 1,700 suppliers across Europe and 17.5 million items in Austria and 24 million in Germany, anonymizes the suppliers, the Unite network offers direct access, where prices can also be negotiated with the supplier. The corresponding catalog adjustments are then made by the supplier, and the entire technical process runs automatically in the background. The huge range of suppliers on Unite (including Kroschke, RS Components, Jungheinrich) guarantees better price transparency and variety. This means that even one-off or ad-hoc requirements can be procured easily - thanks to the fast search and order process. And the platform's single creditor principle simplifies accounts payable.
With the connection to e.g. Unite's marketplace, millions of articles are available in your own eProcurement system at the push of a button.
Currently available marketplace connections
- Amazon Business (OCI)
- PSG (OCI and API)
- Mercateo (OCI)
- Unite (API)
STEAG: First DIG-eProcurement customer goes live with Mercateo Unite
By linking the Mercateo Unite catalog to eProcurement, Germany's largest power generator gains full access to Europe's largest catalog for consumables, thus sustainably reducing the number of special orders.