Major players in the electronic trading market in Russia have their own view of the state’s competence in this segment and their own idea of what guides conservative customers who still prefer traditional “paper” trading using electronic trading platforms. The relationship between the customer, supplier and ETP is analyzed by the Chairman of the Board of Directors of the B2B-Center company, Alexander Boyko.

Business Guide: What, in your opinion, are the main problems of the electronic trading sector in Russia? Why do many, including large companies, prefer to continue the practice of paper (hammer) trading?

Alexander Boyko: The fact that electronic trading took so long and difficult time to gain its position is, among other things, a consequence of management inertia and conservatism, which are present in many companies. But this is not the only reason.

Unfortunately, some companies still prefer to carry out unregulated procedures, and the head of the purchasing department himself decides how to purchase. This old-fashioned method is practiced where shareholders and management do not appear to be interested in the company's profits. If owners seek control, increased earnings and efficiency, they first introduce regulated trading procedures. From this point of view, if a company practices “paper” trading, this is already good. This means that soon they will come to electronic ones.

There are other problems too. Sometimes, for example, advisers from security services try to convince owners that transferring procurement into the wrong hands is a chance for competitors to take advantage of the information that has become public. But we all know very well: the more the security service scares the owner, the more resources will be allocated to it. Such arguments discredit the very idea: everyone should do their job. And the operator of the electronic trading system, in principle, does not interfere in the procurement processes of companies.

BG: Is it appropriate today to talk about the specialization of electronic platforms? What advantages does B2B have over other operators?

A.B.: When a company deliberately confines itself to a very narrow segment, it is probably convenient for it. We do not reject the work of highly specialized platforms, although we are of the opinion that only resources open to all industries and types of business can be truly in demand and will contribute to the development of the market. The larger the site, the wider the possibilities. Because only in conditions of openness and non-discriminatory access to trading can competition develop.

Specialization on such large sites should be only conditional, formal - for the convenience of finding information. Thus, in our system there are platforms B2B-Npk, B2B-Metallurg, etc., but this division is conditional, since they are all part of a single diversified market.

BG: B2B is not represented in the list of electronic platforms approved for placing government orders. Representatives of B2B have commented on the shortcomings of Federal Law-94 many times. What do you think will be the “sag” of the new public procurement system in Russia?

A.B.: The situation in government procurement is gradually changing towards the development of the federal contract system (FCS). We believe that the list of sites operating in this area will expand, since the FCC assumes the use of several types of trading procedures, and at those sites where government procurement is currently taking place, only one procedure has been implemented.

We hope that the new public procurement system will be built as competently as possible, taking into account all the shortcomings and strengths of the existing law. I would like to believe that there will be no “sagging” in the new legislation. And if they arise, they will be promptly corrected.

BG: A number of companies prefer to place orders on their own electronic resources. One of the declared reasons is the inability of small suppliers to trade on large electronic platforms due to the high cost of bidding support. Do you think there is an opportunity to make large ETPs more accessible, including to small players and small and medium-sized businesses?

A.B.: Of course, there are companies that prefer to create their own resource for procurement. The main motive for this is that entry is free for suppliers. But this is the main mistake. Huge amounts of money are spent on creating these resources and then on servicing them, but at the same time it is not possible to create a competitive market. Because the companies that entered these sites first, and sometimes even the purchasing managers themselves, do everything to ensure that there is no place left for newcomers. And the choice of the winning bidder still remains with the manager.

Of course, accessibility is one of the key factors that can attract a significant number of companies to the site, and, therefore, increase the degree of competition. Therefore, many operators practice different tariff plans. This allows you to select the necessary package of services at the optimal price for each market segment.

BG: In principle, can your own corporate procurement website replace a large electronic platform - in what cases? Are there any prospects for corporate ETPs?

A.B.: Corporate sites can be a great addition, but you can truly develop only on open independent resources that provide more opportunities. The services offered by a professional electronic trading operator are difficult to implement on your own resource - it is expensive and impractical. Everyone must do their job. Today, a number of operators, including our company, have the practice of creating trading platforms for specific companies that want to have their own e-commerce resource. As a rule, these are resources with a corporate domain name operating within the framework of an electronic digital platform.

BG: How would you characterize the e-commerce market in Russia in comparison with European countries or the USA? In what direction will it develop?

A.B.: The e-commerce market at this stage is rapidly developing in Russia, Europe, and the USA. Historically, in Europe and the USA, the emphasis has shifted towards the B2C segment. The B2B segment there is weaker due to the “dot-com” crisis of the early 2000s. In Russia, on the contrary, the B2B sector is actively developing, and precisely according to the transactional scheme.

Interviewed by Inna Sviridenko

Electronic auctions went under the hammer