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.
Reduce effort: various connection options
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 the Mercateo study 2017). 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. In this way, product orders from external web catalogs can 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.
Fully integrated alternatives: Background Search and API
Starting from certain OCI versions, 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, provided they use at least OCI 3.0. By means of API, the platform can also directly access the 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!
Simplification for 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/process.
Current marketplace connections
Currently DIG has connections to the following marketplaces:
- Amazon Business (OCI)
- PSG (OCI)
- Mercateo (OCI)
- Unite (API)
Example of full integration: Unite
While the Mercateo Shop, with 1,700 suppliers across Europe and 17.5 million items in Austria and 24 million in Germany, anonymizes the suppliers, Unite 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 products on Unite (including Kroschke, RS Components, Jungheinrich) guarantees better price transparency and variety. This means that even one-off requirements can be procured easily - thanks to the fast search and order process. And the platform's single creditor principle simplifies accounts payable.