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Comparison
B2C – working with an individual or retail customer. The value of the purchase per buyer is lower than in case of B2B, and transactions are mostly singular. It is easier to acquire a customer (lower costs).
B2B – working with a business customer, very often with a corporate one. The value of the purchase per buyer is high and transactions are frequent. It is much more difficult to acquire business customer (higher costs).
B2C
B2B
The mechanism by which eCommerce operates in B2C (Business to Consumer):
Before we buy a product, we deal with marketing, comparing offers and customers service.
Although when talking about eCommerce in B2B (Business to Business) we think about the same mechanism in wholesale, it can be totally different. What is more: it can completely change the strategy of the company and its efficiency.
The store offers a product
A customer buys a product
eCommerce B2B – possibilities
eCommerce B2B is a range of opportunities
According to the research, B2B potential is 150 billions of PLN. Top selling articles in business to business sales are: office supplies, raw materials, production materials, as well as the products related to the operation of the company’s assets.
Cost optimization
Optimization of the costs of customer acquisition and retention
It reduces the cost of error managing
Strong competition on the market made it hard for the companies to have a competitive price. There is a chance in eCommerce B2B. Why?
It enables full automation of the document flow
It increases the efficiency of the employees
Business analysis
During the implementation of the project for Higma Service, a model example of eCommerce B2B, following challenges were emerged:
Business analysis as a key to success in eCommerce B2B
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effective customer service throughout the country;creating an accounting mechanisms of the customers with a lot of spots.
Applied solutions
Applied solutions
Creation of the brand-new infrastructure and development of the mechanisms used to manage repeatable processes.
Creation of the new tools which increase the operational capacity of the sales department.
Including all the regular customers is the panel, which streamlines the sales, service and vindication processes.
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eCommerceMajor features
Big data
Each sector of the economy has its needs and expectations, this is why Business Intelligence and big data become an important part of the market. In case of eCommerce, data analysis is also the basis. A unique tool, which allows optimization of the business processes between the company and its contractors on a daily basis, has been created.
Big data – collecting and effective use of the business data
Easy access to data
Open web access to the IT system for all the employees of the company makes it easier for the sales manager to accept and implement the order to the system from the level of every computer with net connection.
Easy access to data
Implementation of such solution (along with other) enabled sales manager at Higma Service to meet up to 12 customers a day.
Cost optimization
Higma Service generaed 23 thousand of the invoices a year. This enormous amount of papers has been replaced by the electronic documents. They are automatically generated and added to the stage of order execution, chosen by the customer.
Optimization of the fixed costs and forecasting influences
Cost optimization
Additionally, electronic documents are grouped into sets for easier analysis and to acquire Business Intelligence data, which are the key for strategic decision-making.
Optymalizacja kosztów stałych
Taking control over logistics
eCommerce system analyses producs sales and forecasts the deficiency of goods in warehouse. Thus, warehouse space is optimized and the costs can be reduced by 45%.
Taking control over logistics
eCommerce B2BAccounts receivable management
$
Accounts receivable management system
Efficient accounts receivable management means:
Accounts receivable management system
ARMS model (Account Receivable Management System) executes those tasks, this is why the costs related to accounts receivable management are reduced.
prevention;
monitoring;
vindication.
System operation and architecture
ARMS offers a possibility of defining tasks. The condition can be a number of days after the due date, and action – sending alerts in the form of an email.
System operation and architecture
Account receivable management
Financial liquidity
Payments monitoring
B2B solutions $
ARMS functional diagram
Every day at previously fixed time, module starts its work – it verifies the payment in terms of the customer’s credibility status. If the payment meets the task’s conditions (for instance no payment within the week from invoicing), module takes another, previously determined, action.
ARMS functional diagram
Starting automatic payment
verification
Payment verification on the basis of customer’s
credibility status
Task management for the status given
Starting the task
execution
End of verification
Action change on ARMS list
Saving information about
acomplished task
YES
Payment meets the conditions of the task?
NO
ARMS functional diagram
This action can be: sending a thank you email or reminder email to the customer, automatic blocking the possibility of placing an order by the contractor when determined deadlines are exceeded.
ARMS functional diagram
Customer segmentation by the level of trust
Customer segmentation by the level of trust
There are three statuses of credibility: green, yellow and red. The system can define tasks for every color (for instance sending an additional reminder about the payment to the customer with yellow label). This labels are not permanent and change automatically depending on customer’s behavior.
After the implementation of the new optimization solutions, time and work resources can be transferred to other
task’s execution. Every company in the next few years will have to invest in the cost-optimizing software.
SummaryAchieved business results
Design and implementation: contellio.com
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