Automating the Business to Business model

The two primary tools required to automate business to business (B2B) models of the future is the use of an  eCommerce website which is effectively integrated into business systems.  The website (element #1) provides the accessible channel, and integration (element #2) builds automation and scalability of business systems.  If these two elements can work harmoniously together, competitive advantage results.

Whether businesses are trying to automate a part or the entire business, the concept of change is not the problem; it is the steps to get there which creates the stumbling block. 

How much of the business should be automated?  Where does one start and when do you stop?  The answer lies in the Pareto Principle, or 80/20 rule, where 20% of a client base typically generates 80% of the revenue.  This becomes the focus.  All business rules/processes which are in place to deal with this core customer group becomes the first priority in the attempts to automate.

Starting Simple:

The arduous step of documenting all processes in preparation for automation must happen, however there is something which can happen quickly to build momentum and deliver quick wins. 

Starting simple is about introducing small portions of automated business processes and technology to core areas of the business, as a trial.  One of the simplest places to start and usually the lowest cost to implement is a secure B2B eCommerce website for all distrubutors to purchase through.  For the sake of clarity, “retailer” is any business which purchases from a wholesaler, and represents the method for the wholesaler’s products to reach the consumer.  

The benefits to this approach:

1)  It represents one of the core values of any B2B model, “simplifying the ability for customers to do business with you”.   If this can be done right, and buy-in results with the retailer, it justifies the growth of change, and further expense. 

2) It is one of the more cost effective areas to implement in a relatively short period of time. 

3) It is one area which can make an immediate impact on operational efficiencies.  One of the more common drains on B2B models is managing the transacting relationship with retailers.  Orders come via fax, the phone, and other manual methods in various formats, which apply strain on the B2B team to translate the order into a consistent format which is suitable for processing.  By introducing an online order taking channel, many operational gains can be quickly made.

4) Allows for some early wins on the board.  Early wins help in facilitating internal buy in and maintains forward momentum.  It is common to have ambitious goals to integrate and automate the business, but it is best to take it slow.  The plan of moving online for product ordering,  and integrating to inventory and CRM systems takes time to get right. With a portion of the project live and working, it helps keep the project on top of mind and keeps Management focused.  Other than operational gains mentioned in point #3, the savings in not having to create print catalogues alone, can justify capital expenditure for a Phase 1 approach.

5) Learning by doing.  One of the best ways to gain a feel for how to evolve online channels is by doing it.  By creating a B2B website, business can begin to better understand the needs of key clients as orders and feedback comes through.

6) Create a feedback loop around the newly formed channel.  This is where customers should be given the opportunity to provide feedback around the newly formed B2B channel once they have had the opportunity to use it consistently over a period of 3 to 6 months.  These learnings can then be applied to the next phase.

7) Start simple.  Success for online ordering is heavily reliant on the retailer networks using this channel.  By starting simple, this becomes a “baby step” for these groups to try things out.  If the retailer groups are not in favour of this approach, a significant investment has not to be made and changes can occur to ensure the evolution of the business continue to meet retailer’s needs.

If this simple “Phase 1” approach is unsuccessful, then nothing progresses further until it becomes successful.  There is no point in investing in integration of business systems if the core element (automating transactions) is not adopted by the retailer network. 

Many Organisations get ahead of themselves and want the end solution as quickly as possible.  This is brought on through impatience and inexperience.  Don’t be either, take your time, and do it right. 

Looking for some guidance on how to move your B2B model online?  Seek out the Online Experts.