How Enterprise Marketplaces Can Help OEMs Defeat Their Sourcing Problems

Between ongoing geopolitical tensions, the global chip shortage, and unprecedented widespread volatility, it’s fair to say that the semiconductor landscape has never been more unstable.

Obviously, these conditions have created severe sourcing problems for OEMs, CMs, and EMS companies.

Apple expects to lose $4 billion to $8 billion due to supply chain problems. But not every electronics manufacturer can effectively brush off a financial hit of that size. That’s why firms without $2.45 trillion in market capitalization should partner with digital commerce facilitators

Gartner® published a report* titled ‘Create Enterprise Marketplaces to Accelerate Digital Business’ which states that, “Organizations create enterprise marketplaces to allow third parties to sell through the platform to enrich offerings and stimulate growth. Application leaders for digital commerce technologies can use enterprise marketplaces to deliver various benefits to their digital business endeavors.”

Here's an explanation of what enterprise marketplaces are and how Sourcengine helps businesses digitalize and thrive

What is an Enterprise Marketplace?

An enterprise marketplace is just the business-to-business (B2B) version of an online consumer marketplace. Because we’re all living in the futuristic year of 2022, most of us are very familiar with consumer e-commerce sites. 

People who want to buy a new laptop for the best price possible can find it on Amazon, eBay, or Taobao. Those platforms have become a default option for consumers because they host listings from direct and third-party sellers. To compete in those spaces, vendors must offer high-quality merchandise, attractive pricing, and transparent shipping.

Enterprise marketplaces operate under the same principles but have a narrow, market-specific focus. Leading market intelligence groups and researchers have found that their services can benefit manufacturers.

McKinsey and Company found that OEMs within B2B ecosystems can improve their procurement process by connecting with indirect sellers. And ScienceDirect published a study that found that business e-commerce hubs could enable companies to improve their profits and expand their market share.

How Can Enterprise Marketplaces Help Electronics Manufacturers?

Sourcengine exists to cut through the analog inefficiencies that have defined the electronic components market for decades. The enterprise marketplace’s robust digital tools help engineers identify compliance issues through a single streamlined interface. And its extensive vendor network of over 3,000 suppliers and database of over 1 billion parts enables firms to acquire the parts they can’t get anywhere else with just a few clicks.

“The process used to be very cumbersome, as some Bill of Materials (BOM) can include thousands of items. To find the supplier for each item and get the product specification, lead time and commercial information can take weeks or months.”

Kyle. S, a Sourcengine user, appreciates the marketplace’s functionality and customer-first business practices.

"Sourcengine is probably my favorite new supplier I found. Easy to use. So, we could make large purchases of large quantities, full reels, and pay regular prices. They weren’t being marked up heavily.”

Sourcengine can help your company thrive by going digital, just like we helped Kyle’s firm. Sign up today.

*Gartner, “Create Enterprise Marketplaces to Accelerate Digital Business”, Sandy Shen, Jason Daigler, Refreshed 23 May 2022, Published 5 July 2019.

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