{"id":3522,"date":"2021-07-13T14:35:20","date_gmt":"2021-07-13T14:35:20","guid":{"rendered":"https:\/\/digicommercegroup.com\/insights\/?p=3522"},"modified":"2022-02-22T21:32:51","modified_gmt":"2022-02-22T21:32:51","slug":"digital-transformation-b2b-e-commerce-in-manufacturing-industry","status":"publish","type":"post","link":"https:\/\/digicommercegroup.com\/insights\/digital-transformation-b2b-e-commerce-in-manufacturing-industry\/","title":{"rendered":"Digital Transformation & B2B Commerce in Manufacturing"},"content":{"rendered":"\n

Not so long ago, companies would handle their business in traditional classic ways. For instance, companies would keep inventory records on paper, send their purchase orders via fax, and use phones to inquire about quotes. Today, the market has changed. It’s moving towards a more digitalized trend. Businesses are converting their information into digital data to meet market requirements. As a result, many practices are done to support the digital transformation process for businesses. In 2022, the most common one is integrating a B2B eCommerce. Especially when it comes to the manufacturing industry. Simply, the definition of digital transformation<\/strong><\/a> is the process of using digital technologies to create new business processes to meet the new market requirements. <\/p>\n\n\n\n

There are many types of eCommerce platforms<\/a><\/strong> for B2B, B2C, B2B2C, or B2G for facilitating buying and selling goods or services using the internet. These different platforms serve many channels like manufacturer, supplier, distributor, or even end-user. In fact, the most important decision for any business to succeed in selecting the right eCommerce solution that meets the company’s business requirements. As a matter of fact, integrating a B2B eCommerce platform, specifically in the manufacturing industry, is critical in the success of its digital transformation process.<\/p>\n\n\n\n

\"B2B
B2B eCommerce Business Model for Manufacturers<\/figcaption><\/figure>\n\n\n\n

What is B2B, Verses B2C & B2G eCommerce<\/strong>? <\/strong><\/h2>\n\n\n\n

Business-to-Business (B2B) or (B to B)<\/strong>, refers to a business that is conducted between companies, rather than between a company and an end-user consumer. Simply, B2B eCommerce is an online business model a form of business transactions between two businesses, like manufacturer and wholesaler or a wholesaler and a retailer. <\/p>\n\n\n\n

Business-to-Consumer (B2C)<\/strong> refers to a business that is conducted between a business and consumer. It is the process of selling products and\/or services directly to the end-users.<\/p>\n\n\n\n

Business to Government (B2G) <\/strong>refers to the sale and marketing of goods and services to the federal state or local agencies.<\/p>\n\n\n\n

How B2B ECommerce<\/strong><\/strong> is Integrated within the Manufacturing Industry?<\/strong><\/h2>\n\n\n\n

Goes without saying, B2B platforms are found in almost every industry from manufacturing to retail! Wherever business is handled, there will be a need for hosting of B2B suppliers. For example, manufacturers, for instance, offer raw materials or finished parts to other businesses that would need to operate with them. Then, they sell their products to other businesses like wholesale or end-users. Thus, every business would need to operate both B2B and B2C platforms likewise. Nowadays, manufacturers are realizing more and more every day the importance of integrating both B2B and B2C models into their strategy.<\/p>\n\n\n\n

\"B2B
B2B eCommerce in Manufacturing Industry<\/figcaption><\/figure>\n\n\n\n

“By 2024, 15% of B2B organizations will use digital commerce platforms to support both their customers and sales reps in all sales activities.” <\/p>According to Gartner<\/a><\/cite><\/blockquote><\/figure>\n\n\n\n

Manufacturers produce finished products by using spare parts and raw materials, in conjunction with labor and machines. Subsequently, these finished products are sold to other manufacturers or wholesalers via a B2B platform. <\/p>\n\n\n\n

A typical B2B model in the manufacturing industry is the automotive industry! In fact, B2B transactions are the backbone of the automotive industry. Many vehicle components are manufactured independently and auto manufacturers purchase these parts to assemble automobiles. For example, these parts are tires, batteries, electronics, hoses, and door locks. These are usually manufactured by various manufacturers and sold directly to automobile manufacturers.<\/p>\n\n\n\n

How the Manufacturing Industry is Responding to Digital Transformation?<\/strong><\/h2>\n\n\n\n
\"Digital
Digital Transformation – Integrating B2B & B2C E-Commerce Platforms in Manufacturing<\/figcaption><\/figure>\n\n\n\n

In the past, many manufacturers struggled with their \u201coffline\u201d traditional ways of reaching their customers. This classic way caused them, not only to lose revenue but also lose potential customers who are digitally driven!<\/p>\n\n\n\n

Today, B2B eCommerce digital transformation, specifically in the manufacturing industry became inevitable! Businesses are driven by challenging consumer needs and demands. In other words, it’s the \u201cConsumer Behaviour,\u201d that shapes the market trends. Thus, consequently, this put pressure on the manufacturers towards implementing digital channels and integrating B2C,<\/strong> B2B<\/a><\/strong>, or B2B2C<\/strong> <\/a>eCommerce platform models into their businesses.<\/p>\n\n\n\n

With the increased customers demand online buying channels, manufacturers have no choice but to revamp their business strategies to be able to survive. According to Elastic Path<\/a>,<\/a><\/strong> the B2B buying process is rapidly digitizing and becoming omnichanne<\/a>l<\/a><\/strong>.<\/p>\n\n\n\n