Market Share Gets "Shaved Down"
True story: An industry giant is confronted by a newcomer – Dollar Shave Club. Within 2 years Dollar Shave Club had taken over 54% of the ecommerce market share, putting a big dent in the used-to-be industry leader’s potential revenue. Not having the collaborative supplier relationships they needed, “Goliath” was unable to respond, merely watching as their market share slipped away.
Profits are saying “bon voyage”...
True story: With a valuation that towers over well-established industry giants’, at $25.5 billion, Airbnb is devouring chunks of incumbent’s profits. Brimming with flexibility, agility, and authenticity, Airbnb, and the entire sharing economy, presents a new challenge to the traditional business model. The conversations in the board room are changing. The incumbents, if unable to quickly react to the market shifts, will soon find themselves couch-surfing.
Competitive advantage disappears at the “speed of sound”...
True story: Hyperloop, the brainchild of Tesla’s Elon Musk, is turning science fiction into reality, able to remove timeline barriers and bring costs down for purchasing and logistics departments, but only if they’re agile enough to take advantage of the hyper competition by connecting to new suppliers to deliver value to stakeholders. And if incumbents aren’t already planning for it now, they better start—generating savings won’t be enough to save this ship from sailing.
The new normal is affecting every part of every business — even procurement.
So how can you prepare? How can you react?
Step 1: Move beyond savings.
Yes, savings is key. But you’re selling yourself short by focusing merely on cutting costs. Procurement can play a strategic role in your company’s future. How? Instead of beating your suppliers down on price, develop more collaborative relationships with them that result in business agility and innovation, for you and them. You can reach your savings goals, spend less time doing it, and start driving real business value.
Step 2: Use your supply chain to become more agile.
The future of procurement is about relationships. The more connected you are to your users and supply chain, the faster your company can adapt and respond to unpredictable market changes. Modern, easy-to-use tools connect your team, suppliers, and employees, fostering collaboration throughout the entire buying process, enabling your company to respond in months or weeks...not years.
Step 3: Empower your people.
Eliminate the tactical so you can enable your supply chain and your staff to act as collaborative partners to the business. Innovate with teams like marketing, legal, finance, sales, engineering, and others. By connecting digitally and working as a team with all your suppliers, you can act as a disruptor instead of a disruptee, and drive business-wide results.
Step 4: Connect to 100% of your suppliers digitally.
Help your company react to challenges and opportunities by having all of your supplier interactions and information in one network. With accurate, real-time data to make quick decisions, you can easily assess risk and react proactively in real-time and make your entire organization more agile.
While the carmaker’s weighted raw-material index increased by more than 200 percent between 2009 and 2012, the average prices for its cars remained stable. Volatility doesn’t only come from new competition, but another source of unpredictable disruption: mother nature. A flood in Thailand alone cost the carmaker sales to the tune of 260,000 vehicles and a 59% reduction in net profit.
Tradeshift can help you take your procurement from savings to agility, and beyond.
Enable your users to find and buy whatever they need from anywhere — while staying within policy. Tradeshift Buy is not just like an easy consumer experience....it IS an easy consumer experience. Modern technology, like single-use credit cards, browser plug-ins, and procurement apps, make it easy to collaborate with all your suppliers and end users.
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Simplify your entire AP process with Tradeshift Pay — eInvoicing, collaborative workflow, and Tradeshift CloudScan™ for invoice capture. Connect with every supplier, track every transaction, and achieve ROI faster with every supplier onboard. And suppliers get it for free.
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Tradeshift Risk is a smart supplier lifecycle management solution. With Tradeshift Risk, you can manage your supplier data, compliance, and risk in one place. A network of trusted suppliers makes it easier – and safer – to do business.
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