Amazon Business is a Business Reporter client.
Organizations should prioritize providing a captivating customer experience. For procurement professionals, this entails the ability to effectively identify necessary purchases to support business operations and align with overall goals of corporate responsibility.
According to Nicolas Olague, private sector leader at Amazon Business, the idea for its establishment eight years ago stemmed from realizing that many individuals were already utilizing Amazon’s established website and logistics system for making business transactions.
According to him, the goal was to keep it very simple. He wants customers to concentrate on achieving their procurement objectives instead of figuring out how to utilize Amazon Business. The user experience is similar to that of our regular consumers. It provides a comprehensive buying experience, from researching a product to purchasing it and ensuring delivery, all using a reliable infrastructure.
For European businesses, this can also apply to the desire for customization and adaptation, especially since they often operate in multiple countries and markets. An instance could involve being open to various options for delivery timing and frequency, as suggested by Olague. This could mean some businesses prefer to receive all their items in one weekly delivery, while others specify a certain day for their deliveries.
We also provide assistance with pricing. If we notice that you have bought the same item multiple times, we will offer the option to use our Custom Quote feature. This feature lets customers submit an offer for a large order and specify their conditions, which will then be sent to multiple possible suppliers. According to the CEO, this often results in 10% cost savings.
Procurement professionals are being tasked with more than just delivering cost savings. European companies are now looking to procurement to also assist with broader goals, such as promoting responsible sourcing and implementing eco-friendly practices in the supply chain. This is necessary in light of stricter laws and growing demands from the public.
Based on Amazon’s 2024 Procurement Report, which gathered data from various industries and countries like France, Germany, Italy, and Spain, 81% of buyers have been mandated to purchase from certified sellers, either internally or externally. Even among those who do not have mandatory purchasing goals, 40% still consider the environmental, social, and governance (ESG) performance of their suppliers.
One instance of this is a vice president of a technology company in Germany who is responsible for global procurement. They state that their company has a goal to decrease their net carbon emissions by 50% by 2030. Additionally, they have implemented stricter evaluations of their suppliers to ensure they comply with regulations and properly handle waste. They also require suppliers to have plans in place to prepare for natural disasters.
One of the main determinants for selecting suppliers is their commitment to sustainability, with 59% of buyers requiring this from their suppliers. Additionally, 40% of companies have a policy to purchase from certified small businesses, while 39% prioritize buying from local businesses.
This is a complex issue, especially when it involves indirect spending categories, which usually consist of many small-value transactions compared to direct spending. Surprisingly, 85% of those surveyed report that the challenge of finding suppliers that adhere to sustainable practices hinders their company from establishing or reaching sustainability objectives in procurement.
Amazon Business enables organizations to facilitate responsible purchasing efforts by streamlining the process of directing buyers towards certified products and sellers. It also showcases products with sustainability certifications and actively tracks progress towards responsible purchasing objectives. This includes implementing a purchasing policy focused on sustainability, known as the Climate Pledge Friendly policy, which organizations can require to ensure that buyers only choose items with sustainability certifications.
According to Amazon Business’ general manager of strategic accounts, Chris Costello, smart purchasing practices on the buyers’ end help establish relationships with verified vendors. Their user-friendly online buying tools include search and filter options, a direct communication platform with suppliers, and informational summaries outlining important ESG information for suppliers.
According to the speaker, purchasing products online can be a useful tool in saving time and effort when researching and selecting suppliers in order to achieve responsible purchasing objectives. With the proper resources, procurement teams can aid their organizations in achieving goals related to environmentalism and diversity. This could involve implementing policies that prioritize smaller businesses or those owned by specific groups, such as women or ethnic minorities. Additionally, combining items into fewer shipments can help decrease carbon emissions from delivery.
Leveraging technology to establish a dependable and adaptable supply chain can aid companies in meeting their unique business needs, resulting in improved service and satisfaction for their clientele. “Our goal is to empower you to be more efficient and dedicate more attention to your own customers,” states Olague.
This involves implementing regulations for purchasing, objectives for sustainability, and maintaining transparency with regards to expenditures. “Whether you have a small team of five or a large one of 5,000, the process remains the same,” he states.
Visit https://www.aboutamazon.eu/news/company-news/amazon-business-customers-across-europe-accelerate-digital-transformation/ to learn about how Amazon Business is aiding European businesses in creating efficient and environmentally conscious supply chains.
Source: independent.co.uk
