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Considering my rapidly advancing age (I turned
42 last week), it was a surprisingly short time ago that I
realized that almost the only time I ever actually learn anything
-- and I mean really "get it" -- is after some very arduous,
emotionally wrenching, or even near-death experience. This
is in sharp contrast to what I used to think learning
consisted of. (Mainly reading and absorbing information.)
I now find that pain, mistakes, and failure (and, frequently,
acute embarrassment) are almost the only sure clues that there
is any learning in the offing.
As a consequence of this realization, I have
developed the habit of celebrating my rare learning experiences
by taking a single blank sheet of paper, writing the words
"WHAT I LEARNED" across the top in big letters, and, if possible,
stating my new-found knowledge in one sentence -- hopefully
a sentence simple and powerful enough to prevent me from forgetting
it and having to go through the whole learning process all
over again. Up to now, I have not generated more pages than
can be held together with a #1 paper clip.
I recently got my hands on a report by the
research division of Jupiter Media Matrix Company called "Getting
Procurement Agents to Buy Online." It jolted me into a recognition
of several truths about e-commerce, and about the work we've
been trying to do here at CastingTrade over the past 12 months.
The minute I read the report, many of our experiences started
to make sense to me. Perhaps I would have come to these same
conclusions eventually on my own. Maybe not. Anyway, there's
only so much pain, mistakes, and failure a fellow can take.
In any event, herewith, "WHAT I LEARNED . . . "
Supplier
power. "The absence of preferred providers is
the chief barrier to online procurement . . . . More than
half of respondents said that not having access to their
own familiar suppliers -- those they currently work with
off-line -- prevents them from moving to online transactions.
They said that comparable product offerings from unfamiliar
vendors are not an acceptable substitute."
WHAT I LEARNED: Suppliers can call the shots
(at least if they act soon). The way for CastingTrade to
succeed is to help them do just that.
Logistics
is Number One. The value-add that the most procurement
agents (58%) expect from online procurement is improved
logistics management -- shipping, warehousing, inspection,
etc. "For procurement agents, dealing with logistics is
a painful necessity that is repetitive, uninteresting, error-ridden,
and one that they would love to get rid of."
WHAT I LEARNED: Purchasing agents can't
get around to using CastingTrade's great strategic sourcing
tools until CastingTrade helps them cut down on all the
other clutter that eats up all their time!
Training
is a close second. The second most important
value add is training (50%)."Providing extensive initial
training to customers on-site, while critical, is not enough.
Suppliers must anticipate that customers will require retraining
as things change on both sides of the online trading relationship.
For instance, since e-Steel changes the functionality of
its site approximately every 60 days, the is a strong need
for continous retraining of its 75,000 members. On the buyers'
side, a once fully trained contact wmay move on to another
job, crating the necessity for a complete training of a
new contact."
WHAT I LEARNED: Maybe what they really want
is processes that are so simple they don't REQUIRE training!
Timing
is everything. According to the report, less
than half of purchasing agents surveyed expect to be doing
more than 20% of their procurement online by 2002. On the
other hand, that means half expect they will be doing at
least 20% by 2002! Specifically, about 1/4 expect the figure
to be in the 30% range, and 1/4 expect the figure to be
in the 50% range. That's a lot of procurement!
WHAT I LEARNED: You're in the right place
at the right time. Hang in there.
Reality
check. "70 percent of respondents said that online
procurement was a priority for upper management, even though
only 15 percent of the agents believe that a B-to-B solution
would affect the price of corporate stock positively." In
other words, they are savvy to corporate politics but remain
bottom-line-oriented.
WHAT I LEARNED: Your instincts are right.
The purchasing agents are the real thing. Concentrate on
providing them with a tool they want to use.
So . . . that's my learning in a nutshell.
I hope these key points can be as helpful to you as I feel
they will be to me. (Maybe they can even save you some pain,
mistakes, and failure.) Of course, if you want to drill down
and look at the data in more detail, get in touch with Jupiter
for a copy of the report. And, whatever you do, keep an eye
on CastingTrade. See if we manage to put into practice what
we claim to have learned!
ABOUT JUPITER: Jupiter Media Metrix
is the global leader in market intelligence for the new economy,
combining data and analysis to provide businesses with unmatched
resources for understanding and profiting from the Internet.
JMM delivers innovative and comprehensive Internet measurement,
analysis, to provide businesses with unmatched global resources
for understanding and profiting from the Internet. For additional
information please contact:
jmminfo@jmm.com or 1-800-481-1212
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