Many Purchasing Solutions Providers tout the benefits of their purchasing supplier networks however this still is not perceived by most corporate purchasing professionals as a value adding feature as they fear giving up control of their supply base and adding a third party between their relationship. Private networks likely are a better option and most solutions providers offer this a an option as well. Still challenges remain to success especially from supplier enablement.

1. 5 Reasons Why B2B Purchasing
Organizations Are Reluctant TO
See Value From Third Party
Supplier Networks.
Many corporate purchasing solutions providers claim their supplier
networks as a value added part of their solutions. However, many
Purchasing Professionals are reluctant to accept this as a value added
feature. Discussion of concerns and discussion of how to capture value
from private networks.

2. 5 Concerns With Third Party Networks
You Need To Own Your Supply Chain
No one else will optimize it for your needs
If you are a high volume buyer for a commodity do you want to subsidize others?
If you are a small to medium sized regional business do you want to be told to use a supplier that giant company like Dow Chemical, BP or Blackwater
uses and forget about business in your communities.
Best Total Cost
Suppliers participating in Networks do not always offer the best price, service or quality.
Supplier Relationship
How can you really form a relationship with a supplier that is subject to the broader network requirements and there is ways the prescience of a third
party monitoring and influencing things even if just indirectly.
Innovation
How can you take advantage of supplier innovation and support unless you have a direct relationship with them?
Quantity does not equal quality
Some public supplier networks spike there total supplier by purchasing contacts and supplier info from companies like Thomas Register
Private Supplier Networks are more valuable

3. The Top Fail point for either approach is underestimating the
effort to add suppliers and getting them to engage.
Options For Success:
• 1. Dedicate lots of resources yourself to manage this. High expense
least effective
2. If your solutions provider offers professional services for supplier
onboard and management include that in start up fee and ongoing
maintenance. High expense medium effective
3. Have third party supplier on boarding and maintenance company
manage. Low cost best performance.
If A Supplier Network Is Part of a Current or Potential Total Spend Solution Working With A Third Party
Is The Best Option To Drive Supplier Enablement and Ultimately Gain More Value From The B2B Spend
Solution