In the post covid era, B2B Retail buyers and sellers have evolved drastically and amplified their expectations. Though they entered the digital arena through e-commerce, several B2B companies are still struggling to maintain the demand and supply equilibrium, and maintain their customer relationships.
Let’s look at the factors acting as a hindrance for B2B Retail
Customer Acquisition and Retention
Customers are always looking for lower costs and high efficiency. They are ready to jump ship when a better opportunity presents itself. 83% of B2B enterprises feel that the customer wants a personalized catalog to choose from, making it challenging for businesses to cater to the needs of all customers and guarantee retention.
Currently, the B2B retail suppliers have more constraints than ever. According to American Trucking Association, there may be a shortage of 160,000 truck drivers by 2030. Uncertain freight prices and customs make it a pressure point for them.
B2B enterprises need to consider several factors before deciding on their shipping strategy: repeat and bulky orders, real-time tracking, and so on. The shortage of drivers, health restrictions, extraordinary demand, and various other factors, puts these businesses in an overwhelmed position.
The advent of e-commerce
According to Gartner’s forecast, by 2025, over 70% of B2B retail companies will move to the eCommerce platform. Companies on the eCommerce platform are doing relatively better than those still following the traditional methods. But many are still trying to cope with a drastic change, from offline to online. Also, the vast platforms bring immense competition and dilute the B2B market by many folds. Many B2B buyers and sellers are shifting to the B2C model to stay afloat.
To sustain themselves during the shift, B2B companies need to launch their marketplace. Not only focusing on their geographical location and brands but also providing wider choices by distinguishing it with a price.
Outdated supply chains
As it is evident, several B2B are holding on to traditional methods of Enterprise Resource Planning (ERP) and are even more rigid to change the same. The sellers and buyers cannot get a holistic view of their supply chain, resulting in a revenue loss, be it offline or online. Given that demand is rapidly increasing and building a strong pressure on the B2B retailers, demand forecasting and replenishment optimization are a must for these companies to integrate into their Supply chain strategy.
Moreover, the stakeholders also prefer transparency which several B2B owners overlook. It is most crucial when it comes to B2B retail.
Time for Change
To survive in the long run, B2B retail needs to take a leap and grow. Not only bringing a shift in the paradigm and integrating technology and moving from the traditional methods.
Flowlity can assist the B2B retail owners in navigating uncertainty, by applying integrated advanced machine learning and statistics. Using its unique resilient model can bring a positive change in inventory management and improve customer relationships simultaneously. Companies who have trusted us can testify to an average inventory reduction of 30% and a 20% reduction in shortages.
This is something that you too can achieve! In our white paper, you will discover how to build a permanently resilient supply chain in just 3 steps >.