E-procurement is becoming more front and center to business buyers as a sales and supply chain channel, according to new research from Amazon Business.
Amazon Business, which Digital Commerce 360 projects generates one in every three transactions on B2B marketplaces, in April surveyed 440 business buyers for its 2022 State of Business Procurement Report. Today, 91% of business buyers prefer purchasing online and 47% of procurement managers also expect to manage a bigger procurement budget this year, the report says.
Procurement managers face challenges
But digital-first procurement managers and directors also can feel isolated within their organization and face a daunting list of current and future strategists.
“Procurement teams must act as digital transformation evangelists, budget guardians, and work-from-anywhere enablers, while also pushing forward corporate social responsibility (CSR) goals,” the report says. “And that’s a tall order for one department also facing significant challenges like global inflation, supply chain disruptions, and increased turnover. In response, procurement leaders are looking for ways to become more strategic, efficient, and collaborative with other departments — all while continuing to provide functional value by securing the supplies needed to keep their organizations’ operations running smoothly and cost-effectively.”
By the end of 2022, 68% of buyers plan to make at least 40% or more of their organization’s purchases of goods and services online. That compares with 56% in 2021, says Amazon Business.
“Nearly one in 10 buyers expects to complete upward of 80% of their purchases online,” the report says.
Other key report findings include:
- 91% of business buyers state a preference for online purchasing over more traditional and offline channels.
- 57% of B2B buyers say their top procurement project in the next five years is automating manual procurement processes and procedures.
- 63% of survey respondents ranked improving sustainability in purchasing practices as a top priority.
- 65% of commercial business buyers need to deliver purchases directly to an employee’s personal residence.
“As procurement becomes more strategic in nature, optimizing and automating workflows grows increasingly important,” the report says. “Traditional, manual processes and legacy technology may have worked in the past, but if the last two years have taught us anything, it’s the importance of reacting to and evolving with the times.”
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