Executive Brief for IBM – September 2016 (MMH & SCMR)
Business-to-Business (B2B) Commerce, the exchange of products, services, or information between businesses—instead of businesses and consumers—is expanding by leaps and bounds. This growth is pushing more companies to rethink their fulfillment practices, particularly in the areas of inventory management, order velocity, and the ability to meet order commitment dates.
Credit the rapid expansion in e-commerce with driving much of the need for improved B2B processes. Today, 74% of B2B buyers research at least one-half of their work purchases online, according to Frost & Sullivan. Combined with cost savings gained by the self-serve e-commerce environment, more businesses are expected to move online in the next few years.
For further proof of the shift to higher B2B sales, you need only look at the online giant itself, Amazon.com. The company reported a number of key increases for the first quarter of 2016, when total sales rose 20.5% year over year to $20.58 billion from $17.08 billion. More specifically, it saw a surge to “more than 300,000” businesses that it serves in its Amazon Business marketplace, “ranging from small to Fortune 500 companies.”