Business-to-Business Networking Marketplace

Presenter: Aidan Covillewith Francisco Campos (WB), Sabrina Roshan (WB) and Sandra Sequeira (LSE)

DIME-FPD Global Workshop, 6 – 11 June 2011

Overview

PPPPP of the B2B

The ProblemSouth Africa The World

The Problem

It is difficult for companies to find suppliers, and screen them for quality.

This increases the cost of products and services (inefficient matching) while reducing business opportunities for smaller, female-owned firms

How do we create a credible and almost costless link between small and medium to large firms?

How do we generate trust for medium and large firms to do business with small firms, particularly women-owned?

Proposed Intervention

Link small firms (suppliers) to small, medium and large firms (buyers) through an online and SMS accessible marketplace

KEY New Features

Updated Directories of suppliers

Job postings and quotes by sector, location, price range

Shortlisting of potential suppliers to request more information

Feedback rating system: feedback on performance

Recommendation system: buyers recommend suppliers

Mapping of business relationships

Proposed Intervention

Link small firms (suppliers) to small, medium and large firms (buyers) through an online and SMS accessible marketplace

KEY New Features

Updated Directories of suppliers

Job postings and quotes by sector, location, price range

Shortlisting of potential suppliers to request more information

Feedback rating system: feedback on performance

Recommendation system: buyers recommend suppliers

Mapping of business relationships

Examples of Features

Directories

www.buy-in-timor.org:

Job Postings and Request for Quotes

http://plumbers.networx.com:

2195

Feedback and Rating System

www.ebay.com:

Recommendation System

www.linkedin.com

www.amazon.com

Mobile Access: Quotes

Quote requested (#Q6502): 60-seater bus hireon 8 June. Copacabana to Rio Scenarium return trip.Company: World BankContact: Sylvia

Reply Quote #Q6502 Cost: R$ 350Comments:Only 50-seater bus availableContact: Natasha

Mobile Access: Feedback

Order #O3201 Feedback: Comfortable, on time and flexible. Thanks!Punctuality: 5/10Price: 7/10Communication: 6/10

Networking

Marketplace

Advisory role in marketplace Development

Impact Evaluation

Recommendations for upgrade and nationwide scale-up

Marketing of the marketplace

Hosting the marketplace

Showcase for potential scale- up

Develop MarketplaceMarketplace Maintenance

Sponsor the Marketplace Development

Provide supporting role in marketing

Access to business lists

Pilot Plan (in KwaZulu Natal Province)

Marketing and selectionPool of suppliers

(10,000)Pool of buyers

General marketing awareness campaign

Targeted marketing: demos, brochures, firm visits, workshops ,

survey

Personal support:• Visits / Demos• Identification of needs • Updates to the marketplace• Presentation of features

Buyers registration (250 with gender information,

250 without)

Marketing and selection

• Baseline survey• Upload participants into system•Randomly phase in new features•Follow-up survey

List of participant suppliers (1,500)

Initial screening and random selection of pilot participants

Similar group of

not participants

(1,500)

• Baseline survey

• Follow-up survey

Overcoming Information Asymmetries

125 125

125 125

NO OWNER GENDER INFO COMPLETE INFO

FEEDBACK AND RATING SYSTEM

NO FEEDBACK/RATING

BUYERS

Questions

Can an intervention like this improve market access and support the development of traditionally marginalised SMEs?

Is market access a more binding constraint for female firms?

What information (including gender and race) influences buyers transaction decisions and do these depend on knowledge regarding the quality of the suppliers?

The Results

Watch this space...