In previous weeks, we’ve given overviews of supply chain topics like warehouse optimization.
This week we’ll be delving into a little more detail on how whether you’re a B2B (Business-To-Business) or B2C (Business-To-Customer) organization can impact the best ways optimize your inventory management and warehouse operations.
We’ll also be covering some tips for warehouses that combine B2B and B2C operations, and tips based on our experience with the Alberta Grocery Initiative.
Key Takeaways:
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Many of our B2B clients take advantage of vendor management, order management, and warehouse optimization processes to create a fully optimized warehouse.
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In a fast-paced B2C warehouse, software with steps that mirrors the physical processes (such as picking, staging, loading), results in smooth handling of fast-moving orders.
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Our advice for pivoting from B2B to B2C is to appoint a team member to lead the transition, adjust your customer-facing resources, and use the right technology
B2B
Warehouses specializing in B2B fulfilment often work with large order sizes but may ship fewer individual orders than their B2C counterparts, resulting in longer lead times than a B2C operation.
Our B2B clients are also often looking to improve their efficiency, supply chain visibility, optimization of space, and synchronization.
Inventory Management Solutions
Real-time inventory tracking helps you ensure that the items your customers need are in stock.
Our Inventory Management System (an enhanced WMS)’s numerous features include the ability to track how much of a product you have in stock, and monitors that change based on the expected orders for that day or week. It even helps you schedule orders based on your average sale time, so you always have product when you need it.
We know that with large orders coming in and out, space optimization is always a concern. That’s why one of our inventory management feature’s newest capabilities is the ability to suggest improvements to your warehouse layout by leveraging sensor data and machine learning technology.
Digitization can also be extremely beneficial to your warehouse operations and supply chain as a whole, a recent IBM survey of B2B organizations discovered:
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only 49% of companies were using an Enterprise Resource Planning system (ERP)
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only 38% were using a Warehouse Management System (WMS)
Many of our clients take advantage of our vendor management and order management, and warehouse optimization processes to create a fully optimized warehouse.
B2C
In B2C, we understand that the need for strong customer service can affect picking, packing, and fulfilment. Customers are likely less tolerant of delays, and often expect same-day shipping. In addition to the need for efficiency when picking and packing a higher number of smaller orders in a day, ensuring the correct items are shipped is essential. The cost of inaccuracy isn’t just financial: A 2012 survey revealed that 29% of respondents will abandon shopping with a retailer altogether if they receive an incorrect delivery just once.
Inventory Management Solutions
Our solutions enable B2C distributors to ship orders efficiently and accurately.
Experts suggest that in a fast-paced B2C warehouse, software with steps that mirrors the physical processes (such as picking, staging, loading), can result in smooth handling of fast-moving orders.
We kept this in mind when designing our IMS app lets your warehouse team log every step of your pick and pack process, as well as claims, expiries, and more, to ensure that you have all of the necessary details at any time.
This cuts down on errors such as shipping incorrect, expired, or otherwise incorrect products.
Errors of this kind can result in significant costs related to shipping the item back, processing and restocking it, and re-shipping the correct item to the customer.
Ensuring the right orders are shipped speedily also keeps your customers happy, which is critical for B2C operations: after all, 32% of all customers would stop doing business with a brand they loved after one bad experience.
Combining B2B and B2C Operations In One Warehouse
Many companies bring B2B and B2C operations together in one warehouse. An example of this might be a manufacturer who sends bulk orders to large stores, but also ships directly to individuals.
LogisticsIT notes, “Whereas once it was largely the case of managing e-commerce on its own, companies are now recognizing that there is real synergy in bringing B2B and B2C all under one roof. If you consider real estate costs and all the infrastructure that is required, it certainly makes more sense for many companies to do things this way.”
When it comes to making this shift, TradeGecko states: “Having a B2C customer database is advantageous for your business because it allows your company to create valuable direct to consumer relationships, gain customer insights and higher margins. It also creates potential to sell your B2C customers adjacent products and services. Unilever had the right idea when they acquired Dollar Shaving Club for $1 billion.”
Pivoting From B2B to B2C: Our Tips
At Routeique, we have some specific advice for manufacturers or distributors looking to expand into the B2C space, based on our work with Alberta Grocery, an initiative created in response to COVID-19.
Tip #1 - You may need to adjust your customer-facing resources
We had to implement more customer-facing resources, including a website where customers can order. This website was based on the order portal we already had for B2B sales. However, if you are an organization that does not yet digitized your supply chain, you may find yourself having to create your website from scratch.
Tip #2 - Appoint a team member to lead the transition
We also had to assign one person to take the lead on adjusting our processes, to ensure that the transition ran smoothly. In other words, having a dedicated person or team to help shift your processes from one to the other is ideal.
Tip #3 - Use the right technology
Throughout this process, we continued to use our Inventory Management System and our Delivery Management System apps to ensure accuracy and customer satisfaction.
Learn More
Routeique’s Inventory Management Solution is an ideal solution for warehouses of all sizes.
Interested in learning more? To contact our team, get in touch at info@routeique.com.
For regular updates on what we’re working on and the latest supply chain news, you can follow us on LinkedIn, Facebook, or Twitter.
