Why Item Number and Price Aren t Enough

Why Item Number and Price Aren’t Enough

Some solutions offer suppliers the ability to make their goods and services available and take orders electronically, but stop far short of truly empowering the supplier. In some cases, these solutions actually threaten their existing business by reducing a company’s ability to differentiate itself and expose the true value of its products or services.

For example, if a supplier of automobile parts has traditionally competed by offering superior, customized products and great service at a premium price, simply publishing a catalog of goods and services to a marketplace or procurement system could make those items appear as peers to lower-priced, lower-quality items. Buyers may only see the part number, description, and price, leading them to choose the lower-priced item. This disempowers the supplier and can result in misinformed buying decisions by their business customers and, ultimately, lost sales for the supplier. Additionally, many sellers want to promote their brand and capabilities along with their products and services, and need a way to effectively interact with their customers and build stronger customer relationships, even while selling electronically.