Expert insights – the future of Manufacturing and B2B commerce

Welcome back to the future of B2B digital commerce. ??

Your compass for navigating the digital commerce landscape in 2024. In this issue we are focusing on preparing ourselves for the year to come. We have engaged with a leading expert to answer some questions about the trends that will shape Manufacturing and B2B commerce success in the coming year.

Don’t miss out on these insights that will help empower you with knowledge and strategies that are essential for success in the evolving B2B commerce landscape.?

Introducing Lisa Hellqvist , an esteemed leader with profound expertise in the aftermarket and extensive experience within the manufacturing industry. Serving as the Managing Director at Copperberg , a global business platform dedicated to the manufacturing community, she consistently guides industry leaders in navigating the ongoing transformations and staying ahead of key trends. Through her leadership, Lisa fosters an environment of strategic insight and proactive engagement, ensuring that businesses are well-positioned to adapt and thrive in the evolving landscape.

Hi Lisa, how do you envision the future of B2B commerce, particularly for manufacturing companies? What do you identify as the most significant trends shaping digital commerce in 2024?

I would say the “winds of change”. ?? Just a few years ago, the focus on e-commerce was dedicated to “replicating” the B2C experience. Now, recognizing the strategic importance of integrating e-commerce into the overall B2B online strategy, it's become a vital complementary force exploring new market shares and enhances efficiency in sales processes and administration.

The journey involves not just adapting but also elevating personal relationships with clients, catering to the needs of the new B2B buyer, through multiple digital touchpoints. E-commerce has emerged as a crucial tool in navigating the complexity of the manufacturing ecosystem.

Finding the right approach to this transformation will give a competitive edge. It's not just about being available 24/7 for our customers; it's also a means providing the information they seek while optimizing costs and experience. The focus on fully understanding your customer’s needs and how that translates when interacting with your brand online is the strongest trend I see.

How do you foresee the role of emerging technologies, such as AI, blockchain, or augmented reality, influencing B2B commerce strategies in 2024? Anything specific that companies should keep an eye on to stay ahead of the curve?

Pinpointing one technology is challenging, but for manufacturers, AR, VR, and AI have taken center stage, for many seamlessly embedded in tools used daily. Efficiency gains are evident, but beyond immediate benefits, the key focus should be on investing wisely.

Technologies should not only address current needs but align with long-term organizational strategy, ensuring scalability and adaptability. In a rapidly changing landscape, the ability to scale swiftly, both up and down, is crucial.

Technology should be an enabler, not a constraint. Invest in solutions that align with your organization's future strategies, ensuring they elevate, not hinder, your business operations. Ultimately, technology's worth is determined by its support for day-to-day business needs.

In the context of the ongoing digital transformation, particularly within the aftermarket, what do you consider the most crucial actions to take over the next five years for achieving success?

Two parallel trends are shaping the landscape.

Firstly, a shift toward end-to-end service delivery is evident, with services integrated into product offerings through mechanisms like performance-based contracts. This requires robust digital capabilities, particularly for accumulating data, with manufacturers undergoing digital transformations that deepen their understanding of assets, machinery behavior, and predictive analytics for their installed base. This strategic approach is critical for nurturing and retaining customer loyalty, emphasizing the integration of added value into service offerings through digital initiatives.

Simultaneously, there's an expanding market for spares and accessories, focusing on efficiently selling more to existing customers rather than acquiring new ones. The rise of e-commerce and industry digitalization empowers manufacturers to provide self-service solutions online, reaching out-of-warranty customers, facilitating information management in their ecosystems and broadening market reach. This evolution also enables high transactional business flows allowing OEMs to compete with third-party counterparts, both in terms of price and supply.

In either of these scenarios, strong digital foundations, both in terms of strategy as well as tech capabilities, are a necessity to successfully carry out these initiatives successfully going forward.

As customer expectations evolve, how should B2B companies adapt their approaches to enhance the customer experience in 2024? Are there specific trends or innovations you see as game-changers in creating more personalized and efficient interactions between B2B sellers and buyers?

Personalization stands out as a key aspect, with data-driven exchanges demanding a seamless, personalized B2B buying experience. The rise of self-service is another significant trend, particularly as younger, tech-savvy generations enter procurement roles. Catering to this internet-born demographic requires crafting value propositions that align with their online comparison habits.

Understanding your customer base is the key to success, whether dealing directly or through a distributor or dealer network. Evaluating the value your online business brings to the table is essential. If it caters directly to customers, ensure a seamless experience. If it benefits dealers, prioritize their satisfaction to maximize the overall value of your online presence.

In the wake of global disruptions, supply chain resilience has become a top priority. How do you recommend B2B companies enhance their supply chain strategies to navigate uncertainties in 2024? Are there emerging practices or technologies that can fortify supply chains and ensure continuity in the face of challenges?

Supply chain challenges remain a complex task due to its’ unpredictable nature. A notable trend is the decentralization of warehouses and inventory to mitigate vulnerability, steering away from centralized setups. Leveraging installed base data is becoming crucial for predictive insights, facilitating regional forecasting of inventory and enhancing resilience for potential disruptions.

All of this to of course meet customer expectations, we cannot deliver what we don’t have. No matter if it is a spare part or the original product. It will reflect badly on the manufacturer to not be prepared for these scenarios. Staying on top of your data will be key to predict.

On a global scale, blockchain is gaining prominence for tracing origins and product transparency, aligning with coming EU legislations. While additive manufacturing, like 3D printing, hasn't fully met forecasted expectations, strategic use, such as printing commonly used parts, offers significant advantages in inventory management during disruptions. These are ongoing discussions and considerations in the supply chain landscape.

In your conversations with B2B leaders, what is the predominant challenge they frequently highlight when undergoing the transformation of their digital commerce?

It is always the human aspect of change management, from overcoming cross-departmental collaboration hurdles, to concerns about e-commerce competing with traditional sales. Breaking established patterns and information silos, take time, and B2B leaders often worry about the effort needed to shift focus to this segment.

Recognizing e-commerce as more than just a channel is crucial, understanding it as a distinct area of operation, requiring strategic attention. Successful transformation demands a clear strategy, a shared vision, and constant communication.

Strong support from top management is vital for any cultural change, especially in driving business online. If challenges getting support persist, active engagement is necessary as a collective effort is crucial in this transformative journey.?

Describe the future for Digital Commerce in B2B in one word.

Maybe stating the obvious word: SEAMLESS

Or call it integrated, effortless, streamlined or any other synonym.

But in essence, the future of B2B eCommerce is not about simply moving transactions online; it's about creating a holistic and integrated experience that empowers buyers, streamlines operations, and drives business growth. Creating a win-win for the customer and the manufacturer.

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Wow, thank you so much Lisa for all your valuable insights. I really hope that our readers got good tips what to keep an eye on for a successful future.???? One thing for sure, it is an exciting future.

If you want to get in touch with Lisa you find here contact details here .

That’s it for this time.

See you again in 2 weeks.

Cheers ??

Malin

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