The major challenge that small to medium enterprises (SMEs) need to be aware of is that developing and maintaining an e-catalogue is different from updating and publishing a print catalogue. Buyers use different technologies to read e-catalogues, many of which are not compatible, so suppliers - if they decide to sell to multiple buyers electronically - must learn how to adapt their catalogue information to this type of operating environment.
The first step is to develop the business case. Typical questions to answer in developing a business case are:
* Will having an e-catalogue improve my relationships with current buyers and give me access to the wider market?
* If so, what is the cost of creating and managing an e-catalogue?
* What is the Return On Investment?
* What was the time, effort and cost before and after, in terms of maintaining and distributing the catalogues to customers?
* What was the cost of processing orders and correcting errors before and after the use of an e-catalogue?
The answers to the above questions depend, in part, on knowing the options for creating and managing an e-catalogue. The two options are:
1. Contract an intermediary. This could be a supplier hub or procurement service provider or e-marketplace, who can build and host the e-catalogue that potential buyer(s) can then access.
2. Do it yourself and deal directly with the buyer(s) As mentioned above, if this is the case the supplier needs to be prepared for dealing with multiple (and perhaps incompatible) technologies used by buyers.
Is an e-catalogue right for you?
Regardless of which option is chosen, the SME needs to do research to assess the cost-benefit. Typical questions to be asked in this research include:
* What are the technical and operational requirements for engaging an intermediary or buyer(s)?
* What are the costs associated with complying with those technical and operational requirements and the integration tasks needed to make an e-catalogue compatible with the buyer(s)?
* What standards should be used for converting pictures, classifying products and services, describing specifications, defining units of measure, identifying customers, and others?
* What are entry, transaction, service and exit fees for contracting an intermediary?
* If an e-marketplace is chosen -- what is the volume of sales? Who are the buyers (and other sellers)?
* What are the legal and management arrangements of an intermediary?
* Are there any exclusion clauses or practices that prevent participation?
The real efficiencies and productivity gains from e-catalogues are made by linking the relevant parts of the business's database or financial management information system (e.g. MYOB, Quicken, Attache) to the buyer's systems.
The challenges
One of the key questions small to medium businesses need to ask is: with all the technical and operating requirements imposed on me by either buyers or intermediaries, how do I customise my data to comply with their systems, how can I reduce the necessity to re-key infortmation and orders and how do I keep my e-catalogue updated?
To this end, SMEs need to have a well-structured product/service database that uses recognised national and international standards (eg. ABN for business identification, ANZIC codes for industry classification, UNSPC for units of measure, EAN/UCC numbers for product identification). Using such standards means the catalogue information can be mapped, transformed and searched more effectively by potential buyers. This approach reduces effort in recreating and updating catalogue content, can adapt quickly to changing technologies and applications, and provide a basis for establishing a scalable e-catalogue infrastructure.
SMEs need to understand cataloguing as a publishing process separate from marketing and fulfilment operations. This can be difficult because naturally you want to differentiate your products from those of your competitors through a mixture of price, quality and service delivery -- but catalogue information also needs to be structured so that potential buyers can easily access it and be presented with comparable information.
This tension can be resolved by recognising that e-cataloguing is only one component of the wider commercial relationship with potential buyers.
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