a fictitious case study: ABC, the decade old business group into engg parts distribution, decided to foray into B2C segment. It will be a new addition to its’ existing B2B model

1. Supply Chain Roadmap
B2B
B2C
Omni
Channel

2.  ABC, the decade old business group into engg parts
distribution, decided to foray into B2C segment. It will be a
new addition to its’ existing B2B model
 ABC has decided to bring in their few familiar products for fastest growing consumer
market
 New initiatives/changes in supply chain processes pertinent to support the new channel
are discussed in this presentation. It comprises general comparison of B2B & B2C
processes, supply chain design factors for new channel, prevailing best practices for B2C
supply chain and finally, adoption of Omni channel strategy to achieve better responsive-
efficient frontier
11/6/2017 2ABC's B2C Supply Chain Roadmap
B2B
B2C
Omni
Channel

3. Purchasing Process
Pricing & Payment
Marketing Focus
Switching Cost
B2B
Complex Decision Making
Order quantity, negotiated
terms
Product features, ROI
High
B2C
Consumers discretion
Fixed pricing, simple
terms/no credit
Convenience, perceived
value, emotions
Low
11/6/2017 3ABC's B2C Supply Chain Roadmap
B2B
B2C
Omni
Channel
Length of supply
chain
Technology
Integration
Fulfilment lead time
Delivery logistics
B2B
Larger amount of product
moves thru lesser stages
Varied degree of integrations
based on relationship maturity
Negotiable
Can be pre planned & efficient
B2C
Product moves across multiple
echelons
Not applicable
Almost non-negotiable
Availability & responsiveness are
the key
Supply chain features

4. 11/6/2017 4ABC's B2C Supply Chain Roadmap
B2B
B2C
Omni
Channel

5.  In Sept 2016, 77 end user serving organization surveyed to understand the Chief Supply
Chain Officers’ priorities & S&OP Planning
 The metrics used to define
Leaders (top 30%) vs. all others
(bottom 70%) across these
Organizations are:
1. CSL (Leaders 95%
Followers 78%)
2.C2C (Leaders 33 days,
Followers 47 days)
3.GP (Leaders 31.4%,
Followers 21.9%)
4. Forecast Accuracy
(Leaders 81.4%, Channel fluctuations & fulfilment challenges are met by rapidly
Followers 67%) adding capabilities & embracing upstream –downstream multi
party logistics collaboration which in turn increases SCMC and
calls for channel convergence
11/6/2017ABC's B2C Supply Chain Roadmap 5

6. 11/6/2017ABC's B2C Supply Chain Roadmap 6
While comparing this 2016 survey result with 2014 result for same 77 companies, following
observations can be made:
1. Shipping thru DC remained almost unchanged while D2C has a decline of 9%
2. 3PL /DC bypass has a increase of whopping 30%
B2C increases D2C shipments which is unsustainable & cost prohibitive. Alternatives are
created through use of 3PLs & e- fulfilment centres. These modes provide the agility
required by B2C channel while leveraging traditional cost-efficiency focused approach of
B2B

7.  As discussed, new practices are blurring the lines between B2B & B2C models. ABC is
expected to re-engineer & integrate its' operations to provide support seamlessly:
11/6/2017ABC's B2C Supply Chain Roadmap 7
B2B
B2C
Omni
Channel
Integration:
People
Process
Tech
Manage cross
channel orders
with real time
visibility of
inventory, order
status & location
Capability to pick-
pack –ship from
multiple sites
Shifting scale of
forecast & plan
across segments
Recognize
changing priorities
of B2C in S&OP
process

8.  The modern shopper’s journey cuts
across different channels including
the physical store, online, mobile
and social media. While
strategizing B2C channel, ABC
must adopt new edge practices to
gain edge over its competitors
 “Shopping Inhibitors” for retail customers
calls for more convenience, customised
offerings & accessibility to real time data
11/6/2017 8ABC's B2C Supply Chain Roadmap
B2B
B2C
Omni
Channel
Omni channel shoppers spend 15-30 % more than traditional shoppers. Despite the potential
of a omni channel approach, supply chains are still immature, as per below response of
retailers in 2016

9. 11/6/2017ABC's B2C Supply Chain Roadmap 9
Business
Drivers
Additional
Operational
Capabilities
Additional IT
Capabilities
Personalized in store
shopping experience
Merging online & offline
experience
Navigation with in store
robots
On the go promotions
Digital Showroom
Beacons
RFID/ E Tags/ QR Scanner
In store Robots
Customer engagement
beyond store
Virtual expert advice
Social media
Leverage customer loyalty
Virtual Avatars
Social Media analytics
Affiliation cards
High performing, cost
effective fulfilment
Inventory visibility &
optimization across channels
Flexible warehouses
enabling dynamic space
allocation
Warehouses as stores &
Stores as micro warehouses
Any time anywhere delivery
Algorithms to offer real time
fulfilment options to
customers
AS/RS, Smart warehouses
B2B
B2C
Omni
Channel

10.  While formulating B2C supply chain strategy, ABC can leverage its existing B2B
capability by adding/ integrating few processes/ systems pertaining to B2C channel.
These are: additional logistics format, forecasting & planning for fragmented orders &
increasing volatility, dynamic inventory allocation, distributed order management system
to name a few
 If the approach is to treat these channel separately with indigenous supply chain, it will
reduce individual operations complexity, but would be costlier as a whole for ABC. It
recommended to have a flexible chain catering to both the channels. Rather, imbibing
omni channel approach will definitely help ABC to stay ahead in the race and win the B2C
market!
11/6/2017ABC's B2C Supply Chain Roadmap 10
B2B
B2C
Omni
Channel