Amazon has the distinction of being the fourth-largest company in the US. There are four key pillars to this massive company, including Amazon Marketplace, an e-commerce platform, Prime, a membership platform, and Web Services, which provides cloud computing. Now, it is focussing on a new commercial interest: Amazon Business.
What is Amazon Business?
Amazon Business has transformed the world of B2B procurement. This online platform was launched in 2015, and by July 2017, it managed to acquire one million customers. In the first year of operation, Amazon Business signed up with over 400,000 businesses and 45,000 sellers, generating more than $1bn in revenue.
Now the company is focussing on growing this component, and you can be certain that Amazon Business will undertake a massive procurement transformation, influencing spend analytics, supporting cost reduction and strategic sourcing. Amazon is looking to increase the selection it offers, while also providing convenience and value to businesses, who want to streamline their sourcing and procurement processes.
How can Amazon Business help you?
Working in the procurement industry, most likely you maintain a database of suppliers and vendors with whom you currently work. At the same time, you are under constant pressure to closely analyse this to reduce spend without compromising on quality.
In B2B procurement, the process of evaluating the supplier, creating a checklist and then getting approvals can be long and tedious. After selecting the supplier, the next step is negotiating the price rates, which can have a negative impact on the order, pushing up the cost up and putting a strain on the whole process.
To make the procurement process simpler, Amazon Business provides a suite of services to suit the needs of multiple organisations. At a quick glance, companies can compare price, enjoy the fast shipment of goods and flexible payment options, and users can also create multiple accounts. In addition to this, the platform has introduced new features, like paying through invoice, catalogue curation systems, and streamlined purchases for organisations that use Coupa procurement system.
Amazon Business in procurement looks set to provide B2B organisations speed, cost-savings and efficiency so that there is no hindrance in meeting the terms of the contract and fulfilling orders. It is a great way for businesses to streamline their procurement process and one which you should avail of today.
Ed founded Odesma in 2014 with the explicit intent of creating a new kind of procurement consultancy founded entirely on cloud principles. Deploying best-of-breed subject matter experts alongside the best on demand technology to deliver rapid and effective change for customers.