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Supplier enablement  how, and how fast, to connect online with one's suppliers  continues to be a key issue for buying organizations seeking to get the most out of their e-procurement initiatives. According to a recent research note from Boston-based information technology consultancy AMR Research: "The current state of supplier enablement is somewhat abysmal. Despite the impressive catalog tools, methodologies and human resources dedicated to the problem, adoption beyond corporate supplies and simple maintenance, repair and overhaul (MRO) items remains disappointing."

Part of the problem may be that small suppliers have been slower than their large and mid-sized counterparts to adopt e-commerce. For example, Dun & Bradstreet's 20th Annual Small Business Survey, released in August, showed that while 80 percent of U.S. small businesses have at least one computer used for business purposes, and two-thirds report having Internet access, only 27 percent of those with a Web site are currently selling on the Internet and they are averaging less than three Web-based orders per month. Among all respondents, less than a quarter said they were planning to invest in a Web site or Internet marketing in 2001.

On the other hand, e-procurement solution providers have not simply thrown up their hands in the face of slower-than-expected supplier adoption. e-Procurement platform providers like Ariba and Commerce One, as well as supply chain and other e-business infrastructure companies (such as i2, Peregrine and Indus International) continue their efforts to make it easier for suppliers to do business online and for buyers to connect with their supply base through the Internet.

To gain some insights into the solution providers' perspective on the supplier enablement issue, iSource spoke recently with Jennifer Turcotte, product marketing manager for supply and content solutions at Mountain View, Calif.-based Ariba. The interview follows:

iSource: What is the big trend that you are seeing in supplier enablement?

Turcotte: We have seen quite an evolution over time. Initially it was really the larger suppliers that were adopting B2B e-commerce. Over time, it's these larger suppliers that are actually starting to see [return on investment] and additional revenue coming through the B2B channel.

In addition, what happened from the beginning, and what is continuing to be a trend we're seeing, is that buyers are actively communicating with their supplier community and encouraging them to develop the capability to accept electronic orders and transact with their customers electronically. But now it's not only the large suppliers. These buyers are really going after their entire supply base. They want to see not only their medium-sized suppliers but even their smaller suppliers become e-commerce enabled and be able to receive electronic orders and eventually also send invoices. In addition, the smaller suppliers are saying, "You know what, this is not early adopter anymore. This is becoming very widespread and it's time I adopt."