The impact of B2C e-commerce of the Amazon.com era in the B2B environment. Diferences, products suited for B2B ecommerce, strategies and limitations of B2B ecommerce.

1. The impact of B2C e-commerce of the Amazon.com era in the
B2B environment
Rafel Mayol
November 2012

2.  Huge catalog selection
 Price competition
 Convenience
by Rafel Mayol – rmayolr@gmail.com

3.  80% B2B sellers feel customers expectations changed
by B2C retail experience (Oracle 2012 survey).
by Rafel Mayol – rmayolr@gmail.com

4. Rank Company Sales B2B Site
(billion)
Top Sales Companies 1 Amazon.com $48.1 
2 Staples $10.6 
 Staples: 3 Apple $6.6
 90% Online ($6 billion). 4 Walmart.com $4.9
5 Dell $4.6 
6 Office Depot $4.1 
 Grainger: 7 Liberty $3.8
 $40M invest in b2b platform. Interactive
 20-25% growth. 8 Sears Holding $3.6 
9 Netflix $3.2
10 CDW $3.0 
 AmazonSupply.com 11 Best Buy $2.9
 2-Day shipping. 12 OfficeMax $2.9 
13 Newegg $2.7 
 365 days returns.
14 Macy’s $2.2
15 Grainger $2.1 
by Rafel Mayol – rmayolr@gmail.com

5.  Custom development:
 Price calculator for manufacturing operations.
 Integration with accounting and inventory software.
 Multiple employee purchasing permits.
 Managerial approvals.
 Application of buyers guidelines.
by Rafel Mayol – rmayolr@gmail.com

6. Sellers with large catalogs + lot of customers =
retailer style.
Indirect commodities:
 Leverage & Outsource (Sourcing Matrix).
 Protection Gloves X - Weapons Systems.
 Light bubbles X - Meat
by Rafel Mayol – rmayolr@gmail.com

7.  Product Information Management (PIM).
 Efficient decentralized Supply Chains (B2C like).
 Work as Seller or Intermediary.
 Not owning inventory if able.
 Locate DCs near customers.
 Due small shipments higher costs.
 Cross Docking Hubs
 From large to small shipments.
by Rafel Mayol – rmayolr@gmail.com

8. Customer order
through our B2B site
Manufacturers Distribution
Other Sellers
or Suppliers channels
Customers
Our DC network
Manufacturers
Sold by Ourselves
or Suppliers
Cross
Docking
Fulfilled by Us LTL/TL Last Mile 3PLs
Other Sellers
by Rafel Mayol – rmayolr@gmail.com

9.  Traditional Orders:
 Few Orders (dynamic picking systems).
 Huge quantities per order.
 Centralized Supply Chain (Few TL/LTL shipments).
 E-commerce Orders:
 Lot of Orders (static picking systems).
 Small quantities per order.
 Decentralized Supply Chain (Lot of small shipments).
 New DC for e-commerce?Consider outsourcing.
by Rafel Mayol – rmayolr@gmail.com

10.  “Retailer alike” Suppliers:
 Move to B2C approaches
 IT.
 Process Design.
 Partner with Supply Chain proficient distributors.
 Limitation of e-commerce:
 Customer service level: rigid, personalized up to a limit.
 Delivered value: limited assessing process, design
capability, etc.
by Rafel Mayol – rmayolr@gmail.com

11. Rafel Mayol