consulting director, sitewards gmbh jochen.breunig@sitewards - … · 2015-05-21 · • b2b...
TRANSCRIPT
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B2B E-Commerce Challenges in
Manufacturer/Wholesale/Dealer Environments
Case study:
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AGENDA
1. Special Challenges for German Mittelstand
2. Success patterns
3. Case examples
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Challenges 1.
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GERMAN MANUFACTURING
Typical CEO
• Very conservative
• Aged 50+
• Risk averse
• Late follower
• Business/Finance
Background
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CHALLENGE #1: ROI JUSTIFICATION
Δ Profit
Δ Revenue (€)
Δ Cost (€)
Δ Sales (€)
Δ Price rea. (€)
Δ Sales (#)
Ø Price (€/#)
Δ n. Clients (#)
Δ Visits p.a.
Conversion r.
Ø Cart (#)
Δ Repurch. (#)
Δ Visits p.a.
Conversion r.
Ø Cart (#)
Δ Ø Price (€/#)
Absatz vor (#)
Δ Absatz (#)
Δ Var. co. (€)
Δ Absatz (#)
Marg. co. (€/#)
By Proc. Δ (€)
in Sales (€)
in Logist. (€)
Other (€)
One time c. (€) Platform (€)
Opex. (€)
Platform (€)
Int. IT (€)
Serv. p.M. (€)
Optim. p.M. (€)
Ext. p.M. (€)
Hostg. p.M. (€)
Δ Marketg. (€)
15.000
3%
3
7.500
3%
3
1.350
675
99
2.025
5
10.000
2.025
200.475
60.125
260.600
2.025
50
300.000
250.000
50.000
3.000
3.000
3.000
500
114.000
60.125
414.000
0
-180.000
-100.000
-50.000
-30.000
335.250
-74.650
225.350
Y1
From Y2
ROI (5Y) = 3,31
Project Example
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CHALLENGE #2: DISTRIBUTION CHAIN
Manufacturer
Wholeseller
Dealer
Retailer
End Customer
B2C option space B2B option space
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Solution Patterns 2.
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TYPICAL THREE STEP EVOLUTION
1. Proof of Concept 2. Integration 3. Roll-out
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“LOW RISK” START INTO E-COMMERCE
1. Proof of Concept
• Limited Product Range: Spare Parts & Supplies only
• Outside Core Market: Start E-Commerce in small country overseas
• B2B self-service-portal: “Help” the supply chain (retention!)
• Reduce internal transaction cost:
Tools for sales force (e.g., configurator)
B2B E-Commerce (without changes to supply chain itself!)
…
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START INTEGRATING SUPPLY CHAIN
2. Integration
• Pilot platform: Collaboration with 3-5 key players
• White label: NEW Supply chain for seemingly unrelated product (risky!)
• Dealer Expansion: Use platform as international gateway
• Start connecting the chain: One platform across multiple levels
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REACH LEVEL OF PURE PLAYERS
Now imagine
3. Roll-out
“Your favorite
E-Commerce pure
player solution”
… and transfer it into a €270B market!
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Case Examples 3.
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SENATOR: REDUCE PROCESS COST
Business Case Product Configurator
• Streamlined design, ordering, production process
• Mass Customisation
• Reduced error rate and communication overhead
• Faster design process
• Reduced time from request to delivery
Business Case Supply Chain
• Dealers can spawn sub shops
• SAP connection
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OTHER CLIENT EXAMPLES
Chemical ingredients
• Pilot: E-Shop in
German unit
• Full ERP integration
• Next potential step:
Roll-out across Europe
Milling machines
• Proof of concept:
Spares & Supply
• Reduced process cost:
ERP integration
• Preparing European
rollout
Industry remote control
• New channel trial: Direct
Sales to End Customer
• Small E-Commerce pilot
entry prior to rollout
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So What?
• It’s not about “B2B”, it’s about complex supply chains
• Mittelstand as highly profitable backbone of German
industry, but with special challenges
• Typical steps for a successful E-Commerce entry