After years of hard work, finally your business started to pick up. You are<a rel=”nofollow” onclick=”javascript:ga(‘send’, ‘pageview’, ‘/outgoing/article_exit_link/774083’);” href=””> selling more products</a> then ever! You have lined up a good number of suppliers and buyers. Things have never been better than now. Except one thing! The financial tsunami has come at the end of 2008 and its effects are still out of calculation. The future situation is uncertain. No one knows how long will it lasts. Your sales figure is dropping. The number of your client is declining. Your profit margin is no longer the same as it used to be! You feel that you are in a limbo! How to increase productivity? How to cut costs without giving up sales? Sounds familiar to you? Well, your company is not alone! According to IDC, a research firm, while interviewed, overwhelming majority of the company executives claimed that their biggest concern is declining profit margins.

Companies, in order to stay competitive, must find solutions to increase efficiency in business operations and control costs. Is there a solution to this ubiquitous problem?
B2B exchanges or e-Marketplaces are capable of solving many key problems that corporations are facing today. E-Marketplaces can provide immense opportunities to automate supply chain process, increase operational efficiency, reduce overhead costs and expand market at a minimal cost.
Using e-Marketplaces effectively
Two primary factors of company productivity are Revenue Increase and Cost Cutting. Both are achievable if a company seriously decides to incorporate e-Marketplaces features in all aspects of business operations. That means if as a company you want to reap all the benefits of E-Marketplaces, you have to commit yourself seriously.

If you would like to use an e-Marketplaces most effectively, you have to get your suppliers and buyers on board too. Supply chain management solution that usually comes with an e-Marketplaces allows you to reduce operational costs significantly.

• Encourage your buyers to send request for quote for a product through the inbuilt system of the e-Marketplaces.
• Make strict rules within your company to send all quotes exclusively through e-Marketplaces.
• Ask your buyers to send Purchase Orders to your company via e-Marketplaces.
• Bill all your clients using invoicing system of the e-Marketplaces.
• Manage shipping and handling though e-Marketplaces.
• Convince your suppliers to use the same e-Marketplaces so that even as a buyer you can get the benefits of a B2B exchange.

Complete adoption of an e-Marketplaces will help a company gain numerous benefits. The following figures taken from various research notes emphasize the importance of e-marketplace in today’s business world. Thanks to e-Marketplaces, companies can reduce purchase order processing cost from US $75 to less than US $10.
• By automating sales and customer support processes companies can lower overhead costs up to 25 – 30% easily.
• Companies also can reduce more than five percent of their maintenance, repair and operation by incorporating e-business solutions, which are integral parts of any e-Marketplaces.
• Business process automation using B2B e-Marketplaces helps companies decreasing of document errors from 20 percent to less than one percent.

• B2B E-Marketplaces solutions are great opportunities

Source by Joo Yaoo