Page 17 - Logistics News Oct Nov 2020
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Supply Chain
the things they buy. As such, corporate buyers milestones at the point of sale and into the
are now promoting a digital shift in the way order itself.
they choose to purchase from suppliers. The The key to creating a successful roadmap
demand on the consumer side for better, faster to digitisation, visibility and supply chain
shipping and delivery has spilled into B2B efficiency involves finding the right partner
markets, putting further pressure on businesses that will take the time to understand what
to streamline supply chain and logistics your business really needs. Any consultant in
capabilities. this arena must be able to balance the unique
Consumers can see where their online order elements of each manufacturing operation with
shipment is at any hour of the day. Now we’re processes anchored in best practices, enabling
seeing that migrate into the B2B world. B2B them to guide and implement organisational
buyers today want that self-directed customer change.
experience they get at home. This means Not everything can be solved with
that manufacturers without the streamlined technology. It takes a combination of
digital capabilities necessary will lose sales to technology and better processes, but
competitors who have fully implemented digital the technology can help a lot for most
supply chain platforms. While B2B supply manufacturers because they usually have a lot
chains involve fewer parties and customers of room for improvement. Integration can be
overall than B2C/retail supply chains, the a big hole for many of them, so connecting
complexity of each vendor/supplier relationship the pipes and making sure the data flows
can make B2B supply chain management and intelligently in the right direction and into
digitisation more complex in many ways. the right systems can really help them be
When you get into B2B manufacturing successful.
models, the contract really governs the Obtaining expertise from supply chain
relationship. It’s not as simple as ‘I sell and consultants to break down walls between
you buy.’ Who at your company is entitled to processes will facilitate a more personalised
purchase from mine? Their purchase power and customised approach to your
may be limited when they want to place an organisation’s supply chain. Additionally, it
order, then it needs approval. The contract may is critical to streamline sales and production
not cover the total catalogue. There’s all these models to incorporate all variables, allowing
corresponding terms and conditions that have the manufacturing operation to pivot wherever
been agreed to about when the product will demand leads.
get out, how it ships, reverse logistics. Every Keep in mind, not all manufacturing
contract is different for manufacturers. Relative operations are made equal. Each sector
to retail, there’s so much complexity that has its own set of problems and concerns,
governs B2B relationships. as does each individual business. To fully
The handshake deals and complex service- streamline supply chain management and order
level agreements that govern B2B transactions management processes, it is essential that your
often act as a deterrent to automation and partner fully understands all the pain points
digitisation because business leaders worry and obstacles specific to your operation so
that the unique variables in each relationship that they can identify the vendors and service
won’t be properly translated into a broader providers best suited to the job.
solution, resulting in a loss of customers if Ultimately, the right partner will collaborate
something goes wrong. This perception is with you to design and implement a strategic
flawed, however. roadmap and stay with you throughout the
When each vendor only has its own terms journey to adjust it when necessary based
filed away on paper from faxes and printed on data and metrics. By staying with you
emails, it can be difficult to keep sales throughout the journey, this partner can help
representatives in the field up to date with you control costs and adjust your sales and
accurate, real-time information on factors operations planning, training practices, cycle
such as capabilities, products, entitled pricing, times and more to keep pace with shifting
purchase histories and lead times. metrics during your operational shift. The
Eradicating manual processes in favour destination point for this roadmap should be a
of digital replacements ultimately improves fully optimised supply chain that is specifically
service to the customer by offering better customised to the unique needs of your
visibility into order status, history and organisation. •
October/November 2020 | Logistics News 15
