A new study released by Aleran Software illustrates both the challenge and opportunities manufacturers face embracing eCommerce. The study suggests manufacturers will limit their ability to scale and grow unless they accelerate selling to customers through eCommerce.
This will entail adopting consumer-driven digital buying experiences and multi-channel sales strategies.
Gartner Future of Sales 2025 report estimate that 80% of all B2B sales interactions between suppliers and buyers will happen in digital channels in 2023. Yet only 13% of industrial Original Equipment Manufacturers offer digital solutions with their current capabilities. Only 10% offer online, automatic self-service tools for placing reorders, according to a 2021 McKinsey report.
The shift to leveraging eCommerce for B2B has the potential to change business and operating models. This includes the ability to protect sales in the event of another pandemic-like crisis, and reach new customers. Additionally, get better data to shape strategies, and overall lower the cost-to-serve customers and length of time to post revenue.
The need to fuel growth through delivering meaningful online buying experiences and making sales more efficient is what prompted New York-based MMS Wholesale to make the shift to B2B e-commerce and multi-channel sales.
A holistic approach
MMS Distribution needed a holistic eCommerce and sales order management platform that could not only help them acquire new customers and deepen existing relationships. But also, seamlessly integrate with their other central business systems and eliminate email sales orders. The company selected Minnesota-based Aleran Software after an extensive search.
“We’re not web developers,” said Matthew Stern, Chief Sales Officer for MMS Distribution. “If it wasn’t for Aleran, we would have to hire additional staff to take the initial step to sell online. Even with seemingly turn-key platforms like Shopify.”
“B2B sales are complex. But the solution to address the problem doesn’t have to be,” said Alex Sayyah, CEO of Aleran Software.
“Manufacturers need a solution and a partner that isn’t focused on a single sales channel. But rather one that helps them see and tap into the power of a multi-channel approach,” said Alex Sayyah.
“We know from customers that they see, on average, a 26% sales lift using our platform in the first year. A 20% reduction in time saved each week. So, when they look at the growth in global markets and the potential buying power, they have significant opportunity to tap into that to fuel their revenue generation. And we help make it possible – efficiently and economically.”
Enterprise Times: What this means for business
While the scope of the Aleran Software is relatively small, the results are interesting and not too surprising. Manufacturers face several unique challenges, irrespective of whether they are commercial B2B manufacturers, and consumer-facing brand manufacturers. They often need to sell directly to consumers.
In addition to connecting with channel partners and integrating all their business-critical systems through a single source of truth. Manufacturers who respond to B2B preferences for “Amazon-like buying” and deliver frictionless digital sales experiences are positioned for sales growth. There are some interesting insights in the study and understanding of the strategies manufacturers need to consider to leverage eCommerce.
