Retail

Uncovering the procurement practices, pain points, and unmet needs of SMEs

In today’s rapidly evolving retail landscape, small and medium-sized enterprises (SMEs) were increasingly turning to global suppliers to diversify their product offerings and gain access to competitive prices. Many SMEs ventured into online and cross-border e-commerce, seeking international suppliers to complement their domestic offerings. However, navigating the complexities of international procurement and e-commerce channels, managing supplier relationships, and ensuring product quality at competitive prices posed significant challenges. These challenges were further compounded by the evolving role of live selling platforms and the increasing demand for technological solutions to streamline operations.

The SME Procurement and E-commerce Solutions survey aimed to uncover the procurement practices, pain points, and unmet needs of SMEs engaged in retail and e-commerce. This study provided insights into how SMEs sourced their products, managed their suppliers, and distributed procurement costs across different channels. Additionally, it explored the challenges SMEs faced in their operations and how they perceived the value added by their suppliers and procurement platforms.

Objectives

The primary objectives of this research were to:

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Approach

To achieve these objectives, the research employed a quantitative approach to collect large-scale data from SMEs in the retail sector, supplemented by qualitative insights to understand deeper motivations and challenges. This comprehensive approach ensured that the findings were both broad and detailed, offering actionable insights to improve procurement practices, supplier relationships, and operational efficiency.

The study focused on SMEs operating primarily in the United States and included businesses across various industries such as electronics, sports & outdoors, home & garden, and more. The research also emphasized the use of B2B e-commerce platforms for procurement and live selling platforms to understand the growing role of digital technologies in SME retail strategies.

Methodology

The methodology for this research consisted of the following key components:

1. Survey Design and Structure

The survey was structured into the following sections:

SME Profile: Information about the business, including size, nature, revenue, and vendor relationships.
Procurement Channels: Insights into how SMEs sourced their products and the distribution of procurement costs across different channels (e.g., direct from manufacturers, distributors, B2B e-commerce platforms).
E-commerce and Live Selling: Questions related to e-commerce platform usage, live selling practices, and satisfaction with procurement channels.
Key Buying Factors: Understanding the factors that influenced SMEs' purchasing decisions, such as reputation, price, product quality, and logistics services.
Unmet Needs and Pain Points: Identifying the challenges SMEs faced in their procurement and operational processes, as well as their expectations from suppliers.

2. Sampling

The target sample for the survey consisted of 500 SMEs in the United States. The respondents were:

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3. Data Analysis

Quantitative Data: Statistical analysis was used to identify patterns, trends, and correlations between procurement practices, satisfaction with suppliers, and operational challenges. Key metrics such as average procurement costs, gross margins, and satisfaction scores were analyzed.
Qualitative Data: Responses to open-ended questions were analyzed thematically to identify recurring pain points, unmet needs, and suggestions for improvement.

4. Reporting and Insights

The final report included:

Executive Summary: A summary of key findings and recommendations for SMEs in retail and e-commerce.
Detailed Insights: A breakdown of procurement practices, challenges, satisfaction levels, and future trends.
Actionable Recommendations: Specific actions SMEs could take to improve supplier relationships, streamline procurement channels, and optimize their e-commerce and live selling strategies.

Conclusion

By leveraging our B2B Research Solutions, the study provided actionable insights on procurement decisions, supplier relationship management, and overall business strategy. The comprehensive approach helped businesses understand their position in the global supply chain, improve their procurement channels, and position themselves for success in the evolving e-commerce and live selling landscape