SMEs would prefer to deal with fewer suppliers 

The majority of small business owners believe their company would perform better with a smaller number of suppliers, finds research.

Some 51 per cent feel that their business would perform better if they didn’t have to worry about multiple companies supplying their business, according to a study by cloud-based web presence platform Basekit.

The survey of 500 decision-makers in businesses with 25 employees or fewer reveals that more than a third of companies have no idea how many external suppliers they use.

Of those that do, 40 per cent use more than three suppliers and 40 per cent have to manage multiple payments each month.

Almost half of small and medium-sized enterprises (SMEs) surveyed also reveal they are currently bundling their personal services such as: home phone, broadband and TV with one supplier.

Basekit CEO Juan Lobato says, ‘Consumers demand high-quality, seamless services, both at work and at home.

‘Trying to manage multiple service providers in high stress situations directly correlates with a service providers customer churn. Creating a ‘one stop shop’ will take the pressure off SMEs whilst creating a sticky approach for service providers that reduces churn.’

Lobato says that smaller, more dynamic companies often won’t have an IT or facilities department to take care of their suppliers, and this is a big issue for SMEs trying to survive in a competitive economy.

‘We have seen service providers beginning to accommodate SMEs via bundle packages and it is only a matter of time before businesses are able to incorporate their entire service needs under one roof,’ he adds. ‘From hosting to packaged cloud services, SMEs will pick one supplier and be able to create their business from scratch.’

Further reading on sourcing suppliers

Ben Lobel

Ben Lobel

Ben Lobel was the editor of from 2010 to 2018. He specialises in writing for start-up and scale-up companies in the areas of finance, marketing and HR.

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