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B2B-X www.b2b-x.com
Supplier | Order Exchange SystemD KuruppathC Olson
19 July 2012
Introduction
B2B-X is a cloud based Web 2.0 compatible B2B portal allowing businesses to interact with their suppliers and also trade with them in a secure and reliable environment.
This product encapsulates a standard order management system which could be customized per business and integrated with their existing IT infrastructure.
Product Positioning
For : Businesses who employ suppliers. They could be Manufacturers, retailers, distributors, resellers, or service providers.
Who : intend to focus more on their business rather than spending effort on the administration and communication aspect of the order management.
The b2bx web portal is a cloud based Web 2.0 compatible B2B portal allowing businesses to interact with their suppliers and also trade with them in a secure and reliable environment.
Value Propositions
To SUPPLIERS (distributors, resellers, service providers etc.)
Subscription based service that includes: Adding products/services to the portal Access to a worldwide customer base Premium Suppliers can promote themselves over "non-premium"
suppliers in listings in addition to making their contact information public for direct contact with Businesses
Receive Orders placed by businesses, track orders and payment statuses
Interaction platform over chat styled interface / per order with businesses
History & reports of past business dealings
Value Propositions contd…
To BUSINESSES (who engage with suppliers for their business needs)
Subscription based service that includes: Maintaining a list of all current suppliers for a business Search new supplier in the market offering similar/parallel
services, enquiring about their cost Comparison feature of current supplier for a given service/
product with similar competitors Premium Businesses – can get to supplier information
directly and bypass portal for making orders as well as receive discounts on other services
Place Orders to suppliers, communicate / follow up, make payments with suppliers on the order status
History & reports of past business dealings Maintain a list of preferred suppliers/potential suppliers so
as to be able to contact them in case of emergency, peak times, or lack of supply
Offerings
B2B-X – a cloud based customizable web portal.
Integration features available with backend corporate applications.
Industry focussed implementation. Ready to use solution.
Primary features include: Order Management : Businesses
can directly place, manage & track orders through b2b-x
portal and Suppliers would be intimated and could put in
all communications around this order on the portal.
Supplier Management: One stop for managing the list
of current suppliers, their contact details etc.
Market size Analysis
Total Market Size (Universe of all the possible customers) All businesses who deal with suppliers Example:
Metals Industry worldwide : 400 Billion $ in 1997 (reference: International Metal workers federation)
Electronics Industry world : 1.254 trillion Euros in 2008 (Reference: Electronics market forecast and industry trends 2007-2012)
Served Market Size (Customers reachable by channels identified) • Metals - $11.0 billion USD (reference :
http://www.researchandmarkets.com/reportinfo.asp?report_id=471256&t=e)
• Electronics - $5 Billion USD – India (http://www.isaonline.org/microsites/visionsumit/12/Presentation/VS2012_PNDhoot.pdf)
Target Market Size (Most potential customers who could buy this) 1% of the Served market size
Competitors
Alibaba.com
Manta.com
Made-in-China.com
IndiaMart.com
Etc.
Primary B2b-X differentiator :
Cloud based order Management system
More customer oriented implementation
TechnologyCloud based / Web portal –
http://www.b2b-x.com/ Manages businesses / suppliers profiles Business specific - Suppliers list including
Current suppliersPotential suppliers
Business specific - Suppliers list for business specific products
Communicate with suppliers in / out of portal (chat, emailing)
User specific - transactions / orders for every customers
Standard implemented solution - customizable based on per customer
Backend & Business modules Database driven repository EDI module Flat file handling module Web-services based integration API available to
enable integrated with other systems in enterprise
Auditing and Archiving
Demand Creation• Influencers – customer references• Search engine marketing / optimization• Partners / System Integrators• Trade Association partnerships• Blogs / Communities• Trade fair representations
Distribution Channels• Primary channel is Web based portal.• System Integrators aka SI’s / Value added
resellers• OEM’s / Partners
Cash Flow – Revenue• As per one of the statistics:
• average B2B transaction value is $75,000 (http://www.informit.com/articles/article.aspx?p=20999)• Assuming 2400 Customers x 10 transactions per year x $
75000 x average 1.75% transaction fee = $ 31.5 Million
• Supplier and Business Subscriptions:
@ $15/month and 2400 Subscriptions
= $36,000 year 1
Transactions Value Commission rate Average Revenue>20000 USD 0.50% 100.0010000-20000 USD 1.00% 150.005000-10000 USD 1.50% 112.500-5000 USD 2.00% 50.00
What are we looking for ?• Funding to get this project started, cover costs on resourcing, product development, office, legal costs and sales personnel.•Guidance on Legal & compliance for this undertaking.
Thank You !
By:
D Kuruppath
C Olson