As a business owner, your ability to understand the dynamics of the supply chain network would not only give your business ideas a reality but help you impact your society directly or indirectly.
Let’s get this part.
If an IT and consulting company like Hidden Brains sells a smart logistics solution to a logistics and transportation company like God is Good Motors (GIGM) for instance, the first thing that has transpired here is a Business-to-Business transaction. And by extension, the economy of the society is strengthened, trust is built within businesses, the businesses involved gain more visibility, and above all, the issue of unemployment is catered for.
Are you still wondering what B2B is?
All your answers are residual in this blog post. You’ll gain deep insights into what a B2B is all about, why it matters, how it works, its current and future trends, as well as a reliable B2B company that you can partner with.
The Concept Called “B2B Supply Chain”
The emergence of the B2B supply chain is a response to challenges that business owners face in managing their customers, procurements, production and marketing strategies, and co-creation with other businesses.
As the traditional supply chain method is being interrogated, organisations are now banking on technology to optimise their supply chain network and create streamlined chain operations for their inventories and procurements, sales and marketing, logistics, and finance.
What is a B2B supply chain?
Before we look at the definition of a B2B supply chain, here is a quick reminder of what supply chain management is all about.
Supply chain management is responsible for the organisation of everything that has to do with production, supply and sales, with emphasis on the quality of the product, and reaching the right customers at the right time.
B2B is a short terminology for Business-to-Business. A B2B supply chain simply refers to a business transaction between two separate entities. These business transactions could be in the form of the purchase of raw materials or finished products from a supplier to a manufacturer, from a manufacturer to a wholesaler, or from a wholesaler to a retailer.
A B2B supply chain is pivotal in the management of a business and its supply chain because it entails critical thinking and smart decision-making; trust and collaborations; risk assessment and management, and the entire functionality of the supply chain network.
Why B2B Matters
With new market trends and competition, businesses are fighting tooth and nail to retain their customers. Hence, a successful B2B supply chain can win the hearts of its customers, no matter the distractions.
No supply chain operates in the human imagination or isolation. In other words, there must be a connection or network that is usually within the organisation and other businesses or between the organisation and its customers. In a business-to-business environment, the supply chain performs the following functions:
It increases the visibility of the businesses involved by helping them connect to a larger audience.
- More opportunities are created for partnership and collaboration.
- Work processes are simplified and business fulfilment is fostered.
- Decision-making processes are improved and more results are birthed.
- The costs of operations are reduced since there is more than one business involved.
- Strong business relationships are built in the supply chain.
- More sales are generated.
The Current Trends and Future of B2B Logistics
As the B2B supply chain landscape evolves, it would do business owners better to stay updated with a few potential challenges like inflation, unstable customer demands, competition, volatility and any other form of disruption.
However, there’s a way out as 21st-century business owners are working tirelessly to come up with solutions that will keep them going.
What does the present look like?
Indeed, the advent of advanced technology has brought a transformation to businesses, not excluding their B2B supply chains. Let’s take a look at the overall trend that has improved the life of the 21st-century B2B supply chain.
The number one current trend for the B2B supply chain is the integration of technology. Some of the most transformative technology trends in the B2B supply chain are the integration of artificial intelligence (AI) and the Internet of Things (IoT). These technologies produce real-time data that helps businesses gain insight into their chain operations, monitor their databases and make proactive decisions that can help them reduce risks and future disruptions.
What the future holds for the B2B supply chain
A study by Bringoz shows that only B2B distributor sales grew from $1.1 trillion in 2021 to $1.4 trillion in 2022, a 25% increase within the space of one year. In addition to that, the most recent statistics on the global supply chain postulated that the global supply chain market rose from $15.85 billion in 2022 to $21.95 billion in 2023, and will reach $30.91 billion in 2036.
In other words, only those with a highly efficient supply chain will experience substantial revenue growth as the year progresses. Below are 4 predicted trends that will impact the future of the B2B supply chain in the coming years.
Before electronic commerce gained relevance in the market, businesses relied on in-person interactions and brick stores. The outbreak of the pandemic was what gave rise to electronic commerce and today, the B2B supply chain landscape has not only gained relevance but is creating more opportunities for business owners to increase their customer base and expand new business locations.
Disruptive Business Trends
With new business trends like business and artificial intelligence, B2B operators should look forward to a future where their customers can enjoy quality self-services. The burden of scheduling, ordering, and tracking customers’ goods will be taken off the shoulders of the customer support team.
In other words, customers are given full autonomy to whatever product they choose to purchase. More so, the cloud-based data provided by these business models helps B2B operators maintain some level of flexibility and adaptability to new market demands.
Business opportunities and collaborations
Transparency and trust are no longer an issue in today’s market and work environments. Why not? Since businesses can rely on other businesses to gain and maintain visibility, the workplace shouldn’t be a burden at all.
While the future holds huge promises for more small and medium-scale businesses to thrive, the expertise of business professionals will also be needed for the development of a fast-changing industry.
Every business thrives for growth and sustainability. As new businesses emerge, the percentage of competitors also increases, and customers would only go for products that can solve their problems, without stress. The world is enlightened and users are becoming more technology conscious.
Electronic stores are becoming the new standard for businesses. Therefore, businesses that haven’t integrated technology into their supply chain operations should start making plans for that, otherwise, they might be left behind or kicked out of the market.
In a few words,
The supply chain operational approach to businesses has been nothing short of a remarkable evolution over the last 6 years. Before businesses get to their customers, they must go through other businesses to ensure that their target audience gets the best experience.
With the adaptation to the aforementioned B2B business trends, small, medium and large-scale businesses are on their way to experiencing radical growth.
How to Begin Your First B2B Experience
There are numerous B2B companies in the industry today but Hidden Brains stands out. We have, and are still carrying out recent research on the best business practices for B2B operators, for over 20 years.
When it comes to leveraging the most current and efficient technology for a smooth supply chain operation, we are your solution.
On our website are reviews from happy and satisfied customers. We say what we do.
Hidden Brains Africa to get insight into what the present and future hold for your B2B supply chain operations.
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