Bukalapak's Ambition to Lead the E-Procurement Market through BukaProcurement

Bukalapak expresses his ambition to dominate the market e-procurement through BukaProcurement vertical, because it has a market share that is no less large than the consumer business (b2c). It can be seen from the success of overseas b2b players such as Alibaba Business and Amazon Business, both of which grew higher than the b2c platform.

BukaPengadaan Director Hita Supranjaya explained that this optimism was supported by changes in Indonesian consumer behavior in terms of digital. Innovation like service E-commerce, digital payments and logistics are changing b2c behavior patterns significantly.

According to him, these changes encourage b2b companies to make adjustments by increasing competitiveness and increasing speed in serving customer needs. But on the one hand, the challenge for b2b companies here in facing global market competition is that it requires technology development that takes a long time and costs a lot of money.

"Bukalapak through BukaPengadaan sees an opportunity to be able to answer these challenges, armed with proven experience in developing E-commerce technology-based c2c/b2c for 10 years," said Hita to DailySocial.

For the sake of being a player e-procurement at the forefront, BukaPengadaan is fortunate enough to be integrated with the platform marketplace Bukalapak and Quasi Retail. This condition makes this platform connected with five million sellers offering more than 80 million products.

As a result, BukaPengadaan is able to fulfill all procurements from corporations, both business players and the government, quickly and at competitive prices. The ecosystem is comprehensive for companies and vendors, including a closed ecosystem for registered users, provision of goods and services, online approval systems, monitoring of goods orders, payments and e-invoicing.

"The advantage for our customers is that they fulfill their needs faster and closer to the merchant network, so prices are competitive. We also help manage a continuously growing list of vendors and SKUs, so that customers focus on things that are more important than just administrative matters. "

Since Open Procurement released in 2016, has now embraced more than 1500 users, about 80% are companies and the rest are SMEs and government agencies. In a month, an average of 150 companies actively transact through BukaPengadaan.

Last year, there were 500 buyers, 5 thousand purchase order, with an average value per transaction of IDR 150 million. During the last seven months, BukaPengadaan recorded a 30% transaction growth. And, in the last three months, the average income growth tripled every month.

It is claimed that every month there are new product categories and vendors that join. Not only retail products and raw materials, but also virtual products that are managed using one pintu platforms. "This allows us to reach almost all categories of needs of small, medium to large Indonesian b2b companies," he continued.

Big business coverage, b2b players are busy solving specific issues

According to a report from McKinsey & Co, the potential e-procurement in Indonesia to reach $125 billion by 2025. This estimate is a combination of global corporate services ($18 billion), b2b marketplace ($76 billion), and b2b services ($36 billion).

Meanwhile, the leading players in Indonesia are still dominated by companies engaged in the b2c marketplace (Lazada, Tokopedia, Shopee, Bukapalak), transportation, travel, and hospitality (Traveloka), and mobility (Gojek and Grab).

Level brand awareness players in this segment, are not as strong as consumer products. However, according to research DSResearch in 2018, revealed that some of the players that respondents often heard about were Bhinneka Bisnis, Bizzy and Mbiz.

In terms of development, the players are not only that, there are Ralali, Ecosystem, TaniHub and Zilingo. All of them have their own market share according to their target market. Ralali, for example, plays into the agency realm to target b2b consumers as buyers.

Ekosis seeks to connect business people to obtain various agribusiness, livestock, and mining products. Also for TaniHub, acting as a supplier for b2b consumers who come from supermarket, horeca, F&B players, retailers to startups.

Meanwhile, Zilingo, provides -based fashion manufacturing supplies cloud from around the world so that every brand, entrepreneur, can take advantage of it.

Variety of services E-commerce The b2b provided shows that there is a niche business that can be dig deeper to solve problems in b2b players. Moreover, the digital transformation of SMEs in Indonesia is only 8% or 3,92 million of the total 59,2 million actors present in Indonesia.