PracticeConsultingSMEs urged to use supply chain services

SMEs urged to use supply chain services

Small to medium sized enterprises risk losing contracts with larger customers unless they adopt supply chain management services, warn analysts.

‘If you’re an SME, and you’re not planning to invest in this, you’re not going to get customers,’ said Dominique Raviart, a senior analyst with IDC.

The researcher recommends that smaller companies invest in supply chain services, which use consultants to monitor and improve the flow of product information between companies.

SMEs will feel the squeeze from other organisations, which are deploying online procurement systems to cut their own costs, but many smaller companies still remain unconvinced of the necessity to deploy expensive IT systems.

‘Wider supply chain pressures from larger companies are not likely to affect us,’ said Simon Temple, IS operations manager with London-based oil company Nimir Petroleum, which sells its goods to major oil distributors.

‘Large enterprises would never buy directly through our site because we sell into a commodity market,” he added, explaining that online procurement would do more for Nimir’s own buying needs than its sell-side partners.

‘The cost of buying each item offline is expensive and we could save a lot of money through electronic billing,’ said Temple.

IDC reported that consulting firms are beginning to look at the SME market to improve their reach. This is likely to accelerate as corporate spending cuts affect consulting groups.

‘In two to three years’ time the market will be really growing,’ said Raviart.

Links

Mid-market not taking advantage of web

SMEs overwhelmed by business rules

  • This article first appeared in Computing

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer