THE NEXT INDUSTRIAL REVOLUTION How E-commerce is transforming B2B

Transcription

1 THE NEXT INDUSTRIAL REVOLUTION How E-commerce is transforming B2B Professor Michael Bourlakis Head of the Logistics, Procurement & Supply Chain Management Group

2 Presentation Cranfield School of Management Logistics, Procurement & Supply Chain Management Group White Paper 2

3 Cranfield School of Management is one of the largest postgraduate management schools in Europe Cranfield School of Management.. 50 th birthday (2017) MSc / PhD / DBA programmes Two 5* hotels on campus An Airport too! Privileged to work very closely with industry Cranfield School of Management is ranked amongst the top business schools for customised executive development. 3

4 World-class research in Logistics, Procurement & Supply Chain Management. One of the Largest groups of faculty in Europe specialising in the management of logistics, procurement and supply chain management One of the largest, longest-established MSc programmes in Logistics and SCM Anniversary in 2017: 35 years! Led the way in development of Agile Supply Chain thinking Major centre of excellence for taught programmes for graduates and executives No 1 outside North America in the world among universities teaching logistics (2017, SCM World Chief Supply Chain Officer Survey) 4 Cranfield University

5 B2B Cross- Border E-Commerce Phenomenon E-Commerce, Digitalisation, Globalisation of markets Flexible, agile and responsive supply chains B2B customers are gradually shifting to online activities B2B customers expect an Amazon like experience Significant increase in the next few years ($1.2 trillion [est.], Forrester Research) 5

6 Extensive desk research How we Analysed this Phenomenon Numerous secondary data sources Company reports & websites, consulting & trade reports, books, trade periodicals Interviews with key stakeholders Qualitative, thematic analysis 6

7 Major Barriers & Challenges Exchange rates, customs & duties, less developed infrastructures Transport networks need to be very agile New business mindset, mentality and culture is needed New skills from employees (IT-related, supply chain analytics) Some sectors will adapt quicker (e.g. fashion, apparel) Hard for large firms competing with agile, start-up companies 7

8 B2B Customer Journey Features: Core Categories 8

9 Archetypes of B2B Companies 9

10 Key Features of B2B Archetypes Key Features Novice Intermediate Innovators e-procurement portal Customized portal functionality for key customers Machine learning Artificial intelligence Virtual reality functionality Cloud technologies Search Engine Optimization (SEO) Data analytics functionality embedded Business intelligence mining Mobile/Tablet enabled website Automation of activities Data protection and security Secure online payment system Integration of platform with ERP systems Integration of platform with operations systems Active presence on social media Platform is scalable 10

11 Simple & Powerful search engine on website Online support interactive support team Mega menus Website usage tutorials Video libraries Detailed product catalogues with categories Competitor Cross Reference Real-time stock availability check Real time/online tracking and visibility of shipments Customer relationship management (CRM) features Product customization Favorites/Frequently purchased list maintained Price transparency & immediacy Price optimization Configure-price quote (CPQ) Dynamic pricing Commercial credit Taxing and custom calculation Foreign currency payments accepted 11

12 Key Features of B2B Archetypes (3) Omni channel touch points managed Web rooming (look online buy in store) Seamless Integration Click and collect options Ship from store options Focus on last mile delivery to customer Focus on the customer experience Shipping options Quotation services for transport alternatives Delivery windows options Cross border shipping management Flexible returns and cancellation policy Loss and damage protection 12

13 Examples of Active B2B companies in Cross-Border E-commerce W.W. Grainger MSC Ferguson International Haas Automation Kloeckner & Co. Krones Group Van de Velde Manufacturing, plumbing, steel, luxury fashion etc. 13

14 This Transformation requires: Seamless Integration following Omni Channel approach Digital Infrastructure Readiness: flexible, scalable, front & back offices integrated Client-based Customization Customer Experience & Customer Service: Key Differentiator Business Intelligence (Data & Tools) & different skills, business mindset Synchronisation of Logistics Express logistics firms can support B2B companies 14

15 B2B Companies need to consider: Personalised content, transparent pricing, interactive and detailed product content, multiple touch points and e-commerce automation [Novice] Search Engine Optimisation to increase visibility, customer-based personalisation (pricing / product customisation), integration with ERP systems, flexible payment and delivery options [Intermediate] Emphasis on Differentiation (content marketing, product videos, product reviews with social media integration) & Excellent Processes (front and back end integration, order tracking etc.) [Innovator] 15

16 Thank you! Professor Michael Bourlakis Head of Logistics, Procurement & Supply Chain Management Group Cranfield School of Management Cranfield, Bedford, England, MK43 0AL. Tel: +44 (0) Cranfield University