The document discusses the evolution and impact of B2B online marketplaces on indirect procurement, emphasizing their role in digitizing and automating traditional processes. With over 17 years of experience, the author shares practical examples and success stories, highlighting the need for improved transparency and visibility in procurement practices. Additionally, it outlines the transformation of supplier dynamics, including benefits of increased competition, collaboration, and efficiency.

1. MARKETPLACE AS A SUPPLIER
TRANSFORMING INDIRECT PROCUREMENT
ANDRES AGASILD
CEO & CO-FOUNDER

2. INTRO
We have been building indirect IT category marketplaces
for 17 years and in 35 countries. Helping with the digital
transformation in 20% of Forbes 2000 companies.
Our focus is on the IT category, but key points are
relevant to other areas of procurement with similar
circumstances.
We also feel that this discussion needs practical
examples and real success stories.
Markit is at the forefront and we will use examples and
address the issues of using marketplaces.
ANDRES AGASILD
CEO & CO-FOUNDER
“
“

3. B2B online marketplaces create self-service, digitally-
sourced environments where multiple vendors can offer
products or services to business customers, making
transactions simpler and more transparent.
“
“
MARKETPLACE AS A TECHNOLOGY MAKING A
STAND TO DIGITALISE AND AUTOMATE THE
CLASSIC PROCUREMENT PROCESS.

4. TRANSFORMATION
TAKING ITS TIME
INDIRECT SPEND CATEGORIES HAVE RESISTED THE
TREND TOWARD ONLINE PURCHASES.
NEW PRESSURES - AND OFFERINGS - ARE RESHAPING
THE FUTURE OF INDIRECT PROCUREMENT.
IN
N
O
VATO
RS
EARLY
AD
O
PTERS
EARLY
M
AJO
RITY
LATE
M
AJO
RITY
LAG
G
ARD
S
THE
CHASM
THE EARLY
MARKET
THE MAINSTREAM
MARKET
GRAPH CROSSING THE CHASM by Geoffrey A. Moore

5. SPECIFIC NOT
UNIVERSAL
WHERE NEGOTIATION AND CLASSIC TENDERING IS
TOO EXPENSIVE OR IMPOSSIBLE.
PRODUCT COUNT IS HIGH, ITEM COST IS LOW
AND TOTAL SPEND IS HUGE.
AUTOMATED TENDERING AND DIGITAL PROCESS
ARE PERFECT FOR THIS SCENARIO.
COMBINATION OF RFQ AND MARKETPLACES BASED
ON SPECIFIC SCENARIOS
MARKETPLACES WORK BEST

6. IT EXPLOSION
80000
2007 2019
76 419
11 419
HIGH PRODUCT COUNT LOW COST OF ITEMS
2007
2019
2400
739 EUR
2 224 EUR
TOTAL BASKET OF
NOTEBOOK + DESKTOP + PRINTER + LCD
UNIQUE PRODUCTS
SOLD IN A CALENDAR YEAR
SOURCE MARKIT, http://www.markit.eu

7. TAILSPEND IS MAIN
SPEND
PC AND RELATED USED TO BE 80% OF THE TOTAL
IT HARDWARE SPEND, NOW IT IS HEADING TO 20%
IT CATEGORY SPEND IS VERY SPLIT OVER A
HUGE VARIETY OF PRODUCTS
SOURCE https://www.spiceworks.com/marketing/state-of-it/report/
2%
5%6%
6%
7%
8%
9%
9%
10%
12%
27% LAPTOPS
DESKTOPS
TABLETS & DEVICES
NETWORKING
PRINTERS
SECURITY
POWER
EXTERNAL STORAGE
TELEPHONY
PERIPHERALS
OTHER

8. PROCESS MATTERS
Most significantly marketplaces provide CPOs with
the means to offload the tactical, repetitive work
that dominates procurement, so they can focus on
more strategic activities.
“
“
PROCESS IS UNDERVALUED BECAUSE IT IS
UNDERMEASURED
PRODUCTIVITY PER PERSON IS A KEY FACTOR
FOR COMPANIES AND ECONOMIES

9. PROCESS MATTERS
Most significantly marketplaces provide CPOs with
the means to offload the tactical, repetitive work
that dominates procurement, so they can focus on
more strategic activities.
“
“
PROCESS IS UNDERVALUED BECAUSE IT IS
UNDERMEASURED
PRODUCTIVITY PER PERSON IS A KEY FACTOR
FOR COMPANIES AND ECONOMIES

10. PRICE SAVINGS
IT IS NOT ONLY “BEST PRICE” BUT ALSO ABOUT
CONSISTENT AND “AFFORDABLE” COMPETITION
CONSIDER TOTAL COST OF PURCHASING,
TIME SPENT ON TENDERS CAN BE HIGHER THAN
SAVINGS
BUT WHAT HAPPENS WHEN YOU ARE NOT
LOOKING AND COMPARING?

11. PRICE SAVINGS
IT IS NOT ONLY “BEST PRICE” BUT ALSO ABOUT
CONSISTENT AND “AFFORDABLE” COMPETITION
CONSIDER TOTAL COST OF PURCHASING,
TIME SPENT ON TENDERS CAN BE HIGHER THAN
SAVINGS
BUT WHAT HAPPENS WHEN YOU ARE NOT
LOOKING AND COMPARING?

12. RELEVANCE
A MARKETPLACE IS ONLY VALUABLE WHEN
IT HAS ENOUGH MARKET COVERAGE

13. RELEVANCE
A MARKETPLACE IS ONLY VALUABLE WHEN
IT HAS ENOUGH MARKET COVERAGE

14. REAL. TIME. APPLES.
DATA QUALITY, RELIABILITY AND SPEED ARE
CRITICAL FOR “MARKETPLACE TRUST”

15. ACCOUNTABILITY
MARKETPLACES LACK THE DIRECT ACCOUNTABILITY
OF SUPPLIERS.
CONTRACTING, ONBOARDING, ORDERING,
INVOICING, RETURNS, WARRANTY, SPOC,
COMMUNICATION. MORE COMPETITION MEANS
MORE SUPPLIERS, WHICH IN TURNS MEANS MORE
OVERHEAD
HOW CAN YOU CONSOLIDATE AND EXPAND YOUR
SUPPLIER BASE AT THE SAME TIME?

16. ARE YOU EXPANDING
OR CONSOLIDATING?
EXPANDING OR CONSOLIDATING YOUR SUPPLIER BASE?
0
5
10
15
20
25
30
35
40
45
Expand
significantly
Expand
slightly
No
change
Consolidate
slightly
Consolidate
significantly
43%
28%
16%
9%
4%
SOURCE DELOITTE: 2020 Chief Procurement Officer Flash Survey

17. MARKETPLACE
AS A SUPPLIER
OPEN MARGIN, OPEN BOOK, RELEVANT SUPPLIER
BASE WITH FULL TRANSPARENCY - CREATING A
MARKETPLACE EFFECT.
MARKETPLACE BECOMING A SINGLE SUPPLIER
WITH FULL SUPPLIER ACCOUNTABILITY.
ALL AVAILABLE INFORMATION ABOUT DELIVERY,
INVOICING, RETURNS AND SUPPORT.
WE NEED THE BEST OF BOTH

18. OPEN PRICING
OPEN TRANSACTION FEE, NO HIDDEN OR
ADDITIONAL COSTS

19. OPEN SUPPLIER BASE
ALL RELEVANT SUPPLIERS, FULLY VISIBLE
AND PRE-QUALIFIED

20. OPEN SUPPLIER BASE
ALL RELEVANT SUPPLIERS, FULLY VISIBLE
AND PRE-QUALIFIED

21. OPEN BOOK
FULL DOCUMENT LEVEL TRANSPARENCY
FOR ALL TRANSACTIONS

22. REAL CASE OF SAVING
TIME AND MONEY
DANFOSS GROUP (1,5 BILLION EUR IN 100 COUNTRIES) MANUFACTURES PRODUCTS AND
PROVIDES SERVICES USED IN COOLING FOOD, AIR CONDITIONING, HEATING BUILDINGS,
CONTROLLING ELECTRIC MOTORS, GAS COMPRESSORS, VARIABLE-FREQUENCY DRIVES
AND POWERING MOBILE MACHINERY.
DANFOSS PROCUREMENT EMPLOYS MORE THAN 500 PEOPLE WORLDWIDE THAT AIM
TO INCREASE SUPPLIER PERFORMANCE, DEVELOP ACTIVE PARTNERSHIPS TO EXPAND
BUSINESS OPPORTUNITIES AS WELL AS MINIMISE COMPLEXITY AND ANNUAL COSTS.

23. DANFOSS SUCCESS
15% SAVINGS PER YEAR
1 DAY TIME GAIN PER WEEK PER PERSON
FROM 130 SUPPLIERS DOWN TO 1
DELIVERY TIME FROM 28 TO 2,75 DAYS

24. 2020 FIRST HAND
EXPERIENCE
SPEED AND FAST DELIVERY SAVING LIVES
ACTUAL SHORTAGES VERSUS VISIBILITY SHORTAGES
URGENT SPEND WITHOUT COMPARING
SAME TEAM, DOUBLE THE WORK

25. 2020 FIRST HAND
EXPERIENCE
SPEED AND FAST DELIVERY SAVING LIVES
ACTUAL SHORTAGES VERSUS VISIBILITY SHORTAGES
URGENT SPEND WITHOUT COMPARING
SAME TEAM, DOUBLE THE WORK

26. 2020 FIRST HAND
EXPERIENCE
SPEED AND FAST DELIVERY SAVING LIVES
ACTUAL SHORTAGES VERSUS VISIBILITY SHORTAGES
URGENT SPEND WITHOUT COMPARING
SAME TEAM, DOUBLE THE WORK

27. 2020 IMPLICATIONS
FOR MARKETPLACES
50% < 10%
GOOD / VERY GOOD VISIBILITY
T1 T2+
ONLY 50% OF PROCUREMENT LEADERS HAD
HIGH OR VERY HIGH VISIBILITY INTO THEIR
TIER 1 SUPPLIERS, WHILE 90% RATED THEIR
VISIBILITY INTO THEIR EXTENDED SUPPLY
NETWORKS AS MODERATE TO VERY LOW.
YOU CAN’T MANAGE WHAT YOU CAN’T SEE
INVESTING IN:
ACCELERATING
DIGITIZATION
UPGRADING
SYSTEMS
HINDSIGHT IN 2020
APPROXIMATELY 18% OF REGRETTED
NOT ACCELERATING DIGITIZATION FAST
ENOUGH THROUGH INVESTMENTS IN
UPGRADED SYSTEMS THAT ENHANCE
VISIBILITY AND ANALYTICS
CAPABILITIES.
SOURCE DELOITTE: 2020 Chief Procurement Officer Flash Survey

28. MARKITPLACE NOW!
CREATES MARKITPLACES AND
TRANSFORMS PROCUREMENT
TRANSPARENCY

29. TAKE THE CHASING
OUT OF OT PURCHASING
WWW.MARKIT.EU