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Why it's Tough to Connect with SMBs, and What You Can do About it.

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"Doesn't Anyone Out There Want my Business?" Why it's Tough to Connect with SMBs, and What You Can do About It. Ed Edwards, Director, Partner Program Management, www.thomasnet.com Natalie Menke, Sales Manager, Universal Blower Pac and INOHVA Pneumatics
Working with small and medium businesses offer an array of advantages including supporting diversity mandates as well as offering agile and customization capabilities. However, getting these types companies to even respond to an RFQ can be challenging. During this session, learn how to better engage SMBs to make for a successful relationship when adding these valuable partners to your supply chain.

Also, be sure to Download "The ABC's of making the industrial buyer’s shortlist" ow.ly/GHM7300KUmV

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Why it's Tough to Connect with SMBs, and What You Can do About it.

  1. 1. Doesn’t anyone out there want my business? WHY IT’S TOUGH TO CONNECT TO SMBs, AND WHAT YOU CAN DO ABOUT IT. Ed Edwards – Manager, Audience Outreach, THOMASNET.com Natalie Menke – President, Universal Blower Pac and INOHVA Pneumatics KG16 Date/Time
  2. 2. Natalie Menke President Universal Blower Pac & INOHVA Pneumatics MEET OUR SMB
  3. 3. 2015 TOP 10 SMB Business Issues Source = techaisle Are addressed by getting new customers
  4. 4. Fortune 100 Supplier Initial RFX Event Using THOMASNET.com 26 Supplier Responses 219 # of Suppliers in Event
  5. 5. • The Importance of SMBs • Perceptions and Realities • Tactical Recommendations • How THOMASNET.com can help • Q&A OVERVIEW
  6. 6. The Importance of SMBs
  7. 7. of US manufacturers are between 5-99 employees Source = 2013 US Census Data 49% 39% 17% 14% 18% 6% 6% Manufacturing 0-4 Employees 5-9 Employees 10-19 Employees 20-99 Employees 100-499 Employees 500+ Employees MORE CHOICES
  8. 8. * Source = THOMASNET User Research 2013 What (if any) are your company's preferences for  sourcing from the following geographies?* Local    Regional    National    Always Preferred 41.0% 17.0% 20.8% Generally Preferred 31.1% 57.1% 32.1% Sometimes Preferred 18.9% 15.6% 29.7% Rarely/Never Preferred 1.9% 1.4% 6.1% No Pref to Note 7.1% 9.0% 11.3% Manufacturers in Indiana** 2,151 under 5 employees 3,908 between 5 and 99 employees 612 between 100 and 499 employees 612 above 500 employees YOU WANT TO SOURCE REGIONALLY ** Source = 2013 US Census Data
  9. 9. Top (5) Reasons % Cost Reduction 87% Quality or Consistency Issues 75% New Product or Customer 63% Logistics (Extended Lead‐Times, Inventory Issues, etc.) 55% Single Supplier Risk Management 38% Employee Size Average Payroll  per employee 0‐4 employees $40,004  5‐9 employees $36,313  10‐19 employees $40,717  20‐99 employees $45,769  100‐499 employees $48,975  500+ employees $61,150  YOU WANT TO KEEP COSTS DOWN What are the most common circumstances that have  led you or your company to seek a new or alternative  supplier? (Select all that apply)* Average Payroll By  Company Size  (US Manufacturers)** * Source = THOMASNET User Research 2013 ** Source = 2013 US Census Data
  10. 10. More People = More Cost + Less Innovation YOU WANT AGILITY More Bureaucracy = More Bureaucracy
  11. 11. Perceptions and Realities
  12. 12. UNDERSTAND WHO YOU’RE WORKING WITH
  13. 13. PERCEPTION: BUREAUCRATIC PROCESS
  14. 14. PERCEPTION: LONG ODDS
  15. 15. PERCEPTION: RISK BEING TIED TO ONE CUSTOMER
  16. 16. SMBs BIG COMPANY PERCEPTION: LONG PAYMENT TERMS REALITY: LONG PAYMENT TERMS
  17. 17. Source = Joint Small Business Credit Survey Report, 2014 Federal Reserve Banks of New York, Atlanta and Philadelphia https://www.newyorkfed.org/medialibrary/media/smallbusiness/SBCS-2014-Report.pdf REALITY: LONG PAYMENT TERMS
  18. 18. Tactical Recommendations
  19. 19. TOP TIPS FOR WORKING WITH SMBs
  20. 20. TOP TIPS FOR WORKING WITH SMBs
  21. 21. TOP TIPS FOR WORKING WITH SMBs
  22. 22. Offering Financing Options – REVERSE FACTORING Financial Institution SupplierBuyer 2. Invoice Approval 3. Factor Pays Invoice net of financing fee paid by Supplier 1. Invoice 4. Payment to Factor 90+ Days
  23. 23. BONUS TIP When you've advanced from RFI to RFP, detail your specific needs and requirements as thoroughly as possible.
  24. 24. http://thomasnet.co/1Xp9X8y
  25. 25. Fortune 100 Supplier Initial RFX Event Using THOMASNET.com Corporate Edition 26 Supplier Responses 219 # of Suppliers in Event Fortune 100 Supplier Most Recent RFX Event Using THOMASNET.com Corporate Edition 70 Supplier Responses 142 # of Suppliers in Event
  26. 26. How THOMASNET.com can help
  27. 27. Our singular focus since 1898: Making it easier for buyers and engineers to find the right suppliers
  28. 28. Our THOMASNET.com FREE Platform • Access to over 700,000 Commercial & Industrial suppliers in North America • Shortlist and qualify by region, certifications, and diversity-ownership • Evaluate and compare suppliers based on capabilities • Create, save & share suppliers shortlists • Send RFI/RFQs to multiple suppliers at once
  29. 29. • RFI follow-up from THOMASNET • Integrate and identify all your Approved Suppliers within our platform • Team-level sharing & collaboration tools Our THOMASNET Corporate Edition
  30. 30. Questions & Answers
  31. 31. YOUR FEEDBACK IS IMPORTANT Please take a few minutes to complete this brief survey. Survey link: www.instituteforsupplymanagement.org/ZA16 or Scan the QR code on your smartphone.

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