why it's tough to connect with smbs, and what you can do about it
TRANSCRIPT
Doesn’t anyone out there want my business?
WHY IT’S TOUGH TO CONNECT TO SMBs, AND WHAT YOU CAN DO ABOUT IT.
Ed Edwards – Manager, Audience Outreach, THOMASNET.com Natalie Menke – President, Universal Blower Pac and INOHVA Pneumatics
KG16Date/Time
Natalie MenkePresident
Universal Blower Pac & INOHVA Pneumatics
MEETOUR SMB
2015 TOP 10
SMB Business
Issues
Source = techaisle
Are addressed by getting new customers
Fortune 100Supplier
Initial RFX Event Using
THOMASNET.com
26Supplier
Responses
219# of Suppliers
in Event
• The Importance of SMBs
• Perceptions and Realities
• Tactical Recommendations
• How THOMASNET.com can help
• Q&A
OVERVIEW
The Importance of SMBs
of US manufacturersare between 5-99 employees
Source = 2013 US Census Data
49%
39%
17%
14%
18%
6%6% Manufacturing
0-4 Employees
5-9 Employees
10-19 Employees
20-99 Employees
100-499 Employees
500+ Employees
MORECHOICES
* Source = THOMASNET User Research 2013
What (if any) are your company's preferences for sourcing from the following geographies?*
Local Regional National
Always Preferred 41.0% 17.0% 20.8%
Generally Preferred 31.1% 57.1% 32.1%
Sometimes Preferred 18.9% 15.6% 29.7%
Rarely/Never Preferred 1.9% 1.4% 6.1%
No Pref to Note 7.1% 9.0% 11.3%
Manufacturers in Indiana**
2,151 under 5 employees
3,908 between 5 and 99 employees
612 between100 and 499 employees
612 above500 employees
YOU WANT TO SOURCE REGIONALLY
** Source = 2013 US Census Data
Top (5) Reasons %
Cost Reduction 87%
Quality or Consistency Issues 75%
New Product or Customer 63%
Logistics (Extended Lead‐Times, Inventory Issues, etc.) 55%
Single Supplier Risk Management 38%
Employee Size Average Payroll per employee
0‐4 employees $40,004
5‐9 employees $36,313
10‐19 employees $40,717
20‐99 employees $45,769
100‐499 employees $48,975
500+ employees $61,150
YOU WANT TO KEEP COSTS DOWN
What are the most common circumstances that have led you or your company to seek a new or alternative supplier? (Select all that apply)*
Average Payroll By Company Size
(US Manufacturers)**
* Source = THOMASNET User Research 2013** Source = 2013 US Census Data
More People =
More Cost +Less Innovation
YOU WANT AGILITY
More Bureaucracy =
More Bureaucracy
Perceptions and Realities
UNDERSTAND WHO YOU’RE
WORKING WITH
PERCEPTION:BUREAUCRATIC
PROCESS
PERCEPTION:LONG ODDS
PERCEPTION:RISK BEING
TIED TO ONE CUSTOMER
SMBs BIG COMPANY
PERCEPTION:LONG
PAYMENTTERMS
REALITY:LONG
PAYMENTTERMS
Source = Joint Small Business Credit Survey Report, 2014 Federal Reserve Banks of New York, Atlanta and Philadelphiahttps://www.newyorkfed.org/medialibrary/media/smallbusiness/SBCS-2014-Report.pdf
REALITY:LONG
PAYMENTTERMS
Tactical Recommendations
TOP TIPS FOR
WORKINGWITH SMBs
TOP TIPS FOR
WORKINGWITH SMBs
TOP TIPS FOR
WORKINGWITH SMBs
Offering Financing
Options – REVERSE FACTORING
Financial Institution
SupplierBuyer
2. Invoice Approval 3. Factor Pays Invoice net of financing fee paid by Supplier
1. Invoice
4. Payment to Factor 90+ Days
BONUS TIP
When you've advanced from RFI to RFP, detail your specific needs and requirements as thoroughly as possible.
http://thomasnet.co/1Xp9X8y
Fortune 100Supplier
Initial RFX Event Using
THOMASNET.comCorporate Edition
26Supplier
Responses
219# of Suppliers
in Event
Fortune 100Supplier
Most RecentRFX Event Using
THOMASNET.comCorporate Edition
70Supplier
Responses
142# of Suppliers
in Event
How THOMASNET.comcan help
Our singular focus since 1898: Making it easier for buyers and engineers to find the right suppliers
Our THOMASNET.com FREE Platform• Access to over 700,000 Commercial & Industrial
suppliers in North America
• Shortlist and qualify by region, certifications, and diversity-ownership
• Evaluate and compare suppliers based on capabilities
• Create, save & share suppliers shortlists
• Send RFI/RFQs to multiple suppliers at once
• RFI follow-up from THOMASNET
• Integrate and identify all your Approved Supplierswithin our platform
• Team-level sharing & collaboration tools
Our THOMASNET Corporate Edition
Questions & Answers
YOUR FEEDBACK IS IMPORTANT
Please take a few minutes to complete this brief survey.
Survey link: www.instituteforsupplymanagement.org/ZA16
or Scan the QR code on your smartphone.