In the past, B2B manufacturing companies have viewed digital channels as a way to improve operational efficiency. However, digital commerce is now making a more significant impact – moving from a transactional activity to becoming a core component of business strategy. Many manufacturing companies anticipate double-digit growth in B2B digital trade over the next three years.
Manufacturing is catching up with other industries
In the manufacturing sector, B2B digital commerce has lagged behind many other industries, particularly those primarily focused on B2C sales. However, with increased investments in digital platforms and tools, manufacturing is also starting to experience the benefits of a more digitized buying process.
Manufacturing companies still generate a smaller share of their turnover from digital commerce than other industries. However, the gap is now smaller than just a few years ago and steadily narrowing.
Leapfrogging delivers faster results with less effort
In many other industries, we have seen what is sometimes called leapfrogging. This means that industries lagging behind in a wave of change can suddenly take advantage of the latest developments driven by the companies at the forefront.
Leapfrogging is not just about speed but also about learning from others' mistakes. It enables industries to avoid the pitfalls of those who went before, providing reassurance, and allows them to implement effective solutions and ready-made system packages straight away.
READ MORE: Expert insights into the future of Manufacturing and B2B Commerce
For the manufacturing industry, this means moving directly from having no digital presence to a fully developed e-commerce platform, with automated order management, real-time inventory management, and personalized product recommendations. However, resources must still be allocated for developing customized solutions or testing to find the best approach. This is also why so many companies in the manufacturing sector are now experiencing rapid and strong growth in their digital B2B sales.
Effective use of digital channels brings unexpected bonuses
For companies already well on their way to digitalization, a growing number of unexpected bonuses are emerging. In addition to increased sales, there is the opportunity to explore new business models. For example, they can sell directly to consumers without relying on retailers or develop subscription-based services for consumables.
Developing digital B2B sales often prompts companies to review their sales processes. They must find efficiencies and solutions that enhance both physical and digital sales. The data generated in digital sales can also be used to create unique and personalized digital experiences which benefit both the company and the customers.
Effective sales channels increase customer satisfaction and loyalty
Effective and complementary sales channels allow customers to choose how they want to interact with the company. Some customers may prefer physical contact with the salesperson, while others prefer to handle their orders entirely through digital channels.
It is also not unusual for customers to want a combination. Simple orders and recurring orders are handled digitally, while larger purchases and development-focused investments are handled via a salesperson. Being able to offer both of these options gives customers greater freedom of choice, which leads to increased customer satisfaction and thus increased loyalty.
Investing in digital sales channels for B2B business provides much more than a new way to reach customers. It drives organizational development that delivers long-term benefits across the whole company.
Want to read more about how digital commerce development for the manufacturing industry will be affected in the coming years? Download our latest white paper: ”From Efficiency to Expansion: The Evolution of E-Commerce in Manufacturing”.
