www.cranfield.ac.uk/som

THE NEXT INDUSTRIAL REVOLUTION

How E-commerce is transforming B2B

Professor Michael Bourlakis

Head of the Logistics, Procurement &

Supply Chain Management Group

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• Cranfield School of Management

• Logistics, Procurement & Supply Chain Management Group

• White Paper

Presentation

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Cranfield School of Management….. • 50th birthday (2017)

• MSc / PhD / DBA programmes

• Two 5* hotels on campus

• An Airport too!

Cranfield School of Management is one of the largest

postgraduate management schools in Europe

Privileged to work very closely with industry

Cranfield School of Management is ranked amongst the top

business schools for customised executive development.

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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)

© Cranfield University 2018 4

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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)

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How we Analysed this Phenomenon

• Extensive desk research

• Numerous secondary data sources

• Company reports & websites, consulting & trade reports, books, trade periodicals

• Interviews with key stakeholders

• Qualitative, thematic analysis

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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

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B2B Customer Journey Features: Core Categories

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Archetypes of B2B Companies

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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

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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

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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

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• W.W. Grainger

• MSC

• Ferguson

• International Haas Automation

• Kloeckner & Co.

• Krones Group

• Van de Velde

• Manufacturing, plumbing, steel, luxury fashion etc.

Examples of Active B2B companies in Cross-Border E-commerce

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• 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

This Transformation requires:

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• 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]

B2B Companies need to consider:

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Thank you!

© Cranfield University 2018 16

Professor Michael Bourlakis

Head of Logistics, Procurement & Supply Chain

Management Group

Cranfield School of Management

Cranfield, Bedford, England, MK43 0AL.

Tel: +44 (0)1234 758561

Email: m.bourlakis@cranfield.ac.uk