Engaging with SME suppliers offers a range of opportunities for corporate organisations. The agility offered by SME suppliers and the increased focus on customer satisfaction make SME suppliers a good option for organisations. The benefits are wide ranging; increased agility and flexibility, brand enhancement due to working with organisations embedded in the fabric of local communities and their customer focus. In general, they can be shown to have advantages over larger businesses, adding tremendous value to corporate and private sector supply chains. Here’s why:
SME’s tend to be more directly involved when it comes to their customers, clients or candidates, creating better communication and relationships between them. This direct involvement tends to happen frequently, demonstrating a commitment, trust and loyalty to their customers whilst also improving relations with business partners. SMEs can adapt and tailor their solutions very quickly around a client. Tangible benefits also develop when sustaining good customer and client relationships, as they can lead to referrals and new business outcomes.
With many transformations taking place in the markets and new opportunities on the horizon, SMEs have the ability to adapt to these fast changing environments and seize any new opportunities, allowing them to stay ahead of the curve and be the early adopters. With larger corporate’s it is more of a challenge because it always takes longer to get the permissions and approvals from senior management to move forward. The agility of a business comes from the speed and stability of a business, this has a direct impact on the organisational health of a company. According to McKinsey the trick for companies is to combine speed with stability- the use of SMEs has a direct impact on this.
It can also be said that SMEs are good at being flexible in the working environment, that they are consistent at delivering good and high quality services and that they are passionate about retaining their clients.
SMEs develop positive team relationships which has been proved to increase employee engagement, forming an inclusive and supportive environment to work in. McKinsey found that diversity also increases employee satisfaction and fosters positive attitudes and behaviours in the workplace.
By creating this tightly knit corporate culture, the employees in SMEs have a stronger emotional bond to their work. Employees in a large multinational rarely care about the corporate vision of the company as a whole, most probably don’t even know what the vision is. It’s also more difficult for larger companies to create a close knit, almost family like atmosphere within their organization. Too many offices and people, all doing different things and many of whom will never even see each other during their time at the firm. In smaller companies, perhaps with a few workers at most, it’s easier to create a tighter culture where workers know and work closely with one another.
Employees can feel more valued and important in the overall company performance. Each employee plays a greater part in small companies compared to larger ones. Consequently, this can be a good motivation point since each SME employee can tangibly see the effects their work has on the firm as a whole.
Creativity, new ideas and innovation is what makes SMEs different. SMEs not only bring their unique entrepreneurial spirit to the business, they bring to the front their proven track record of innovation, hard work and flexibility that can add huge bottom line benefit to an organisation”.
In addition to bringing a lot of flexibility, innovation and diverse offerings to larger organisations, there are also distinct benefits to using local SMEs. Local SMEs are very accessible to come in and discuss solutions to challenges and opportunities face-to-face with a larger buyer who often has to deal with suppliers who may be miles away. This is a distinct benefit which also allows faster-to-market solutions and more negotiation on price, quality and service standards.
By using Koble, larger companies can connect with the hundreds of SME suppliers that we have on our platform. All you need to do is select the product or service you are sourcing, browse the supplier’s’ posts and select the companies you wish to connect and do business with. It’s that easy.