B2B automation needs more anonymity
The increasing globalization of supply chains has paved the way for transactions to become more complex, which has given way to an array of complications within the online purchasing space.
Most notably, manufacturers have been struggling to find an efficient way to offload their excess inventory. In the past, manufacturers have traditionally partnered with costly distribution companies to sell newly released products at suggested wholesale and retail prices.
This has left them without a distribution channel for their excess, end of the line or factory refurbished inventory. The lack of a formal secondary distribution channel has caused massive erosion in margins, resulting in a loss of control and fragmentation for manufacturers.
However, with the rise of platforms to facilitate B2B e-commerce, buyers and sellers have the option to execute transactions on one, centralized platform. These platforms allow manufacturers to increase cash flow by getting rid of extra supply while saving time coordinating with a disjointed list of distributors.
While there are many benefits to traditional B2B platforms, most have yet to address the clashing interests between the buyer and seller. Corporate buyers want to expand out their payment terms and adjust vendor contracts as needed. Suppliers don’t want to accept cards due to hefty fees and implementation costs. Clearly, their needs are at odds with each other, threatening to agitate this delicate relationship.
Enter an anonymous B2B marketplace. By using one anonymous, streamlined platform, it is easy to conduct B2B commerce anywhere while keeping transactions digital, allowing both parties to connect without leading to fragmentation within the market. The element of anonymity empowers manufacturers to increase revenue by selling excess inventory.
Furthermore, anonymous transactions shield manufacturers, the seller, from costly returns and reverse logistics. Traditionally, this impacted the manufacturers’ profit margins, which eroded their overall net profit. Now, manufacturers can sell through their excess inventory with the assurance that wherever the product is sold, it will honor any geographical requirements.
Anonymity also mitigates risk. Without a digital platform acting as a middleman, vendors are at risk for late checks and more.
B2B marketplaces have been effective in addressing the globalization of supply chains, but physical direct B2B sales is a thing of the past. The anonymity element is, and will be, pivotal in facilitating a mutually beneficial and efficient buyer-seller relationship.