sales@prismecs.com 1 888 PRISMEC

Procurement

Breaking Down ​Barriers – how frictionless procurement will enable a revolution for industrial ​sellers​ and buyers

January 25, 2024

Blogpost

By : Junaid Ali, CEO of eINDUSTRIFY

A Smarter Procurement Solution

The landscape of industrial procurement is undergoing a transformative shift, shaped by the rising tide of remote work and the surge in online transactions. As businesses adapt to this new reality, the pulse of industrial commerce beats to the rhythm of innovation and digital transformation, ushering in a future where procurement is more efficient, timely and cost-effective.

Selling and buying industrial products has changed for good. While much of the world slowed down and was impacted significantly by COVID-19, some sectors, like energy and IT infrastructure, grasped the opportunity to grow. According to the 2020 ARTS release, online sales increased by 43% in 2020. Emerging from the pandemic, many industries now demand round-the-clock product availability and transactions and a more streamlined procurement process than has ever been available before.

However, the manner in which many industrial products are currently resourced, in terms of procurement and supply chain complexity and opaqueness, is no longer fit for purpose on two levels. At a micro level, the traditional seller/buyer model perpetuates historic inefficacies in how one company does business with another. On a macro level, it holds back the urgent improvements required in global energy and power infrastructures to support the necessary pick up of pace in the transformation toward net-zero targets.

Put simply, the infrastructure that drives industrial projects requires much greater transparency, connectivity, and speed.

The development of a more streamlined, faster, and worldwide digital purchasing model and supply chain environment for the industrial sectors have been defined by eIndustrify as ‘frictionless procurement.’ Frictionless procurement combines insights and investment into action, empowering accelerated timeframes through advanced digitalization, enabling companies to succeed in this rapidly evolving landscape for procurement. Frictionless procurement is already advancing. For many companies today, the choice is stark: those that embrace frictionless procurement can profit from such a transformation, but those that don’t run the risk of being left behind.  

Recognizing the unlimited potential of this commercial revolution for buyers and sellers, eIndustrify and Prismecs have launched an online solution that will play a critical role in enabling frictionless procurement. The platform improves the interface between buyer and seller by improving discoverability, predictability, and transaction speed. It will deliver purchasing clarity and disrupt the traditional seller-buyer status quo plagued by ambiguity to meet rising demand and support the drive towards sustainability goals.

Founded in 2019 to bring purpose-built solutions helping enterprises modernize outdated models hindering advancement, Prismecs works globally, providing project management experience spanning construction, equipment integration, and maintenance to deliver complex industrial assets. Prismecs supports the oil and gas, power generation, renewables and metals, mining and cement industries. As an innovative platform launched by Prismecs, eIndustrify offers a range of procurement tools and services optimized for modern businesses. Whether companies want to streamline procurement processes, reduce lead times, or simply save money on purchases, eIndustrify has the tools and expertise to succeed.

The eIndustrify platform is, in essence, the world’s first “virtual mall,” with “storefront” availability for industrial product manufacturers and buyers to engage and do business. Pairing this online marketplace model seamlessly with Prismecs's flexible and global service support and on-the-ground workforce support makes the solution unique. Sellers of all sizes previously restricted to supplying local buyers will have access to international markets and multiple revenue streams without the need for extensive internal capacity, receiving support for installation, commissioning, servicing, and warranty work from Prismecs' expert engineers stationed around the world.

Advancing frictionless procurement will require continual technological progression, building on pandemic-spurred digital advancements to achieve a frictionless state. Alibaba and Amazon exemplify data-driven business-to-consumer platforms that demonstrate the potential for fully digitizing the selling and sourcing of industrial products. According to a 2021 survey, 87 percent of B2B buyers identified new suppliers online compared to 78% pre-pandemic. The frictionless procurement approach to commerce will eliminate intermediaries, empowering OEMs (original equipment manufacturers) worldwide to connect directly with SMEs (small and medium-sized enterprises) and enable procurement teams to secure the most competitive prices from the global market.

What’s Wrong with the Old Way of Buying and Selling?

The power and energy industries must change to meet larger societal and climate imperatives ahead. Those changes must include the way they carry out business transactions if pressing net zero deadlines are to be met. Conventional industrial procurement models have long been outdated but are now wholly unfit for purpose given rapid urbanization and infrastructure decentralization. Problems persist around the lack of visibility and quality data for buyers and sellers, hindering their ability to make informed decisions.

The prevalence of excessive intermediaries further complicates transactions, introducing unnecessary layers and inefficiencies. Outdated distribution channels can contribute to slow progress, impeding the pace at which transactions can be conducted. Limited competition among sellers results in cost inefficiencies and inflexible price structures.

Limitations also exist in traditional marketing methods used by companies to sell products. Purchasers are no longer prepared to invest valuable time in searching websites and scanning through product images for the right equipment. They want to know immediately if you have what they need.

With frictionless procurement, the barriers to entering the procurement market are significantly reduced. Information on product availability is instant, making it faster and easier for sellers of all sizes to connect with global purchasers.

Get access to global audience through eINDUSTRIFY

Benefits of the Frictionless Procurement Model

Frictionless procurement offers the capability to bring SMEs and OEMs together worldwide at a rapid pace. Furthermore, it has the potential to position the energy sector, which has often been criticized for lagging behind industries such as aviation and automotive when it comes to new technology adoption, ahead of these rival verticals in enhancing digital technology adoption in the procurement process.

The frictionless model disrupts the current procurement landscape, overcoming current obscurity by giving buyers more clarity on what products are available and what they’re purchasing and providing OEMs with a better understanding of which products are selling most and how they are being marketed. It also advances smart buying, such as seamless cross-buying of complementary products.

For sellers and purchasers, it opens the door to new markets, liberating them from excessive geographic constraints. European manufacturers can ship products to Africa and the US and vice versa, identifying gaps in manufacturing to enhance global efficiency. Buyers, in turn, gain expanded options, just-in-time availability, and cost savings by accessing more flexible price structures from the open international market without being tied to limited and often more expensive local sellers. With many smaller-sized OEMs working under leaner and more flexible business models, this can enable faster technology adoption, which can generate efficiencies and lower costs for them and lead to benefits for customers.

How the eIndustrify Digital Procurement Platform Works

eIndustrify’s Digital Procurement Platform emerges as a transformative force in frictionless procurement, reshaping how manufacturers and bu