SMEs in developing countries can gain significant benefits by using internet,B2B
Marketplaces and Global B2B Portals. While the number of MSMEs registered with B2B marketplaces/ Global B2B portals is significant in Asian Countries like India.
Global B2B Portals and B2B Marketplaces provide several benefits to MSMEs such as:
•Access to wide range of markets and greater potential for partnerships
•flexibility in administration and communication and convenience in interaction with partners who have different time zones
• greater access to information at a single source and also ease and cost efficiency in updating product information
• lower search and transaction costs and ability to enter supply chains for large companies
Although Global B2B Marketplaces solutions are claimed to create value for firms, the record shows that firms have been slow in adopting these solutions.
Here are Barriers to adopt and use of Global B2B Marketplaces by MSMEs:
•MSMEs perceived that B2B Portals service providers did not understand their product, industry requirements and needs of the firm.
•MSMEs that exported had already established traditional channels and intermediaries and are dependent on them.
•Business partners in the supply chain of SMEs are not ready for online transactions.
• Not suitable for their product as they have to be customized.
•Lack of trust between buyer and supplier.
•Lack of Technology standards.
Solutions to increase adoption of Global B2B portals and Marketplaces:
•B2B Portal service providers that cater to different sectors have to develop their separate sales team for each sector. The sales teams have to be trained in the specifics of that industry so that they can be well versed with the needs of the MSMEs of the sector.
•As the needs of MSMEs may vary from one sector to another, it is necessary that tailor made packages and recommendations be provided.
•Trust must be developed between buyer and suppliers by verifying supplier background and online transactions must be in secured way.
•Service Provider must make sure registered Buyers and Suppliers on B2B Portals are active and participate in communicate and are very responsive to all the inquires.
•Technology Adoption must be on power with the latest trends in market so that networking, communication, collaboration and transactions happen very fast and secured way.
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