TMCnet News
Manufacturers Should Invest in B2B eCommerce to Build a Foundation for the Future Says hybris...research from IDC Manufacturing Insights sponsored by hybris suggests that sound B2B eCommerce will help manufacturers to compete more effectively on customer service and price... New York – June 17, 2010 – A recently published study by IDC Manufacturing Insights, sponsored by hybris (www.hybris.com), a leading multichannel commerce software vendor, suggests that manufacturers are more likely to emerge in a position of strength from the economic downturn if they put in place an effective B2B eCommerce strategy. This will give them the ability to face intense competition from home and abroad as well as rising customer expectations and shrinking profit margins by giving them the responsiveness and reliability that is essential in this sector. In its sponsored white paper entitled “Key Strategic Challenges in B2B eCommerce,” IDC Manufacturing Insights has identified six key challenges that characterize manufacturing organizations selling via a B2B value chain, each of which can be addressed via the implementation of a B2B eCommerce initiative: 1. Lower costs and increase productivity: More efficient and streamlined online selling and purchasing processes will enable manufacturers to achieve revenue growth without incremental head count, increase productivity through a reduction in errors and re-focus time spent on repetitive tasks towards more value-added activities. 2. Retain existing customers: Delivering an excellent customer experience will be key to retaining customers against tough competition in a global marketplace. Manufacturers that want to reduce the likelihood of their hard won customers defecting to a rival must provide a modern “purchasing process” that is tailored to fit their customers’ complex business process workflows and business critical milestones. The easier it is to find extended product information or detailed technical specifications or make purchases, the more likely it is that customer retention will rise. 3. Manage product complexity: As manufacturers extend their product lines with increasingly complex variations, the ability to aggregate all product information into a central repository, instead of multiple enterprise systems, and to seamlessly transfer up-to-date product data to customers as required, will become mission critical. Manufacturers who want to reduce flawed orders, incorrect shipments and pressing customer support requests will benefit from taking a consistent approach to Product Information Management (PIM). 4. Innovation through services: Manufacturers looking to maintain healthy growth and sales margins would also do well to explore the trend towards the delivery of product-related services that offer an additional revenue source, higher profit margins and can be introduced faster and with lower investment. An effective B2B eCommerce strategy can not only help suppliers and manufacturers to change the way they do business, but can also help them to stay close to their customers and better understand what service to offer to which customers and when. 5. Exploit new markets: The best way to eliminate the prohibitive cost of reaching out to new customers or to reduce the risks associated with entering a new market is to establish a feature-rich B2B eCommerce capability to remove the need to invest in an onsite sales force or telemarketing team. Manufacturers will need to ensure that it is well promoted and incorporates the latest automated search engine optimization functionalities so that products and specific product attributes are easy to find via Google, for example. They will need to ensure that it supports the language, currency, unit of measure and specific local regulations for each new market to maximize selling opportunities, but there is no doubt that it will deliver a rapid return on investment through cross-selling and up-selling opportunities. 6. Faster time-to-market for new products: The reduction in product life cycles and the continued emphasis on selling to narrower market segments or micro niches also means that manufacturers are under increased pressure to reduce the time it takes to bring a product to market and to increase the speed with which it can deliver a significant return on investment. An effective B2B strategy can provide a 40 percent reduction in the time between product readiness to product availability to buyers, according to IDC Manufacturing Insights, helping to streamline the new product introduction cycle – including traditional catalogue creation and product pricing definition to phone-based channel announcement and other sales and marketing support activities. Commenting on the research, Carsten Thoma, U.S. president of hybris, said, “For some companies, the ability to offer a product for sale, or to change a product in less time than a competitor, may mean the difference between being able to profitably market a product and missing a valuable sales opportunity. The Internet may have offered an alternative way for manufacturers to do business with each other, but companies that take the time to build a long-term B2B strategy will be the ones to emerge from the downturn in the strongest position.” To view the sponsored white paper about the ”Key Strategic Challenges in B2B eCommerce” (IDC Manufacturing Insights, May 2010), please visit: http://www.hybris.com/IDC About IDC Manufacturing Insights ( www.idc-mi.com) IDC Manufacturing Insights provides business and IT decision-makers with fact-based research and analysis to inform and support critical business decisions. The global independent research and advisory firm closely follows processes associated with the design, development and distribution of goods across markets including Discrete Manufacturing, Process Manufacturing, High Tech/Electronics Manufacturing, and Consumer Packaged Goods. IDC Manufacturing Insights' research and analysis is critical for end-users, as well as hardware and software suppliers, and technology service providers. IDC is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world’s leading technology, media, research, and events company. For more information, please visit www.idc-mi.com, email [email protected] About hybris (www.hybris.com) hybris is a leading vendor of next generation agile multichannel commerce software. Its clear vision about the need for consistency, coordination and personalization of information across all channels and throughout all phases of the customer lifecycle has resulted in the development of an integrated, agile solution which supports the industrialization and automation of operational marketing and sales processes. It is spearheading innovation in this field, enabling businesses to communicate and sell across all channels in a consistent and effective way. Established in 1997, hybris has a proven track record of profitability and growth, with ambitious expansion plans for the future. Headquartered in Munich, it has offices in the U.S., UK, Netherlands, Switzerland, Austria and Sweden. Its international presence is extended via a dedicated network of business and technology partners across Europe and the U.S. It has over 200 customers worldwide running more than 1,500 websites "powered by hybris". Customers are global brands from retail and manufacturing industries, including: Toys 'R' Us, Adidas, Pirelli, Conrad, Norgren, Lufthansa, Reebok, TRIA Beauty, Vitamin Research Products, Grundfos, Demag, Sika, Bunzl UK & Ireland, Phonak, Waterstone’s and Rexel. -Ends- For further information please contact: Jessica Mularczyk Ascendant Communications Tel : 508-498-9300 Email : [email protected] As a community-building service, TMCnet allows user submitted content which is not always proofed by TMCnet editors. If you feel this entry is of inferior quality or wish to report it for some reason, please forward the URL to "webedit [AT] tmcnet [DOT] com" with your comments. |