Why Businesses Buy Online
In the past, before the emergence of B2B e-commerce, buying parts and components for product development could be a tedious and time-consuming experience. One had to meet the sales and technical representatives from various vendors to discuss technical details and to negotiate prices. A lot of emails and faxes were also exchanged for quotations and orders.
Most of these vendors were resellers, most of whom did not know their products well enough as we would like them to be. For every question asked, they would usually get back to their principals before satisfactory answers were obtained days later. Their lead-time were usually in weeks, if not months, even they were local representatives. When supports were required if things did not turn out right, often we were not be getting the level of competence as their principals.
That was the past.
Today, products and solutions can be put on the markets faster and more cost-effective, with B2B e-commerce.
- Informative: Before deciding on what components to be used for a new designs, there are already tons of up-to-date information available on vendors websites for download. Some even host videos and tutorials. These information are usually so comprehensive that one can literally do everything himself (or herself) without the need to meet any technical personnel from the vendors. If supports are required, it is often just a few emails away. This saves a lot of time scheduling meetings with various vendors, and later learns most are not suitable.
- Transparent: Almost all B2B e-commerce vendors have their prices and stock availability listed online. This makes comparing prices between vendors extremely easy. The stock availability is also doing a great favour to eliminate the frustration of going through all the purchasing paperworks and, at the end, learn that they have no stocks left.
- Choices: E-commerce expands the component selection horizon. Companies can choose the best products with the best prices from a global pool of suppliers, with just their browsers.
- Cheaper: Research has reported cost saving on direct materials of up to 15%. It is done by reducing waste and supplier margins and price transparency on the market. Moreover, most B2B e-commerce vendors sells direct, thus has the capacity to pass re-sellers' margins to buyers.
- Shorter lead-time: Re-sellers usually consolidate orders for the benefits of lowering costs. However, this will increase the lead-time, which is usually 6 to 8 weeks for common products. Directly selling from manufacturer with B2B e-commerce platforms cuts the lead-time dramatically, as most of them ship their order at the next working day. This allows businesses to reduce the inventory requirement and improve cash flow.
It is the interest of every business to manage costs, increase productivity and efficiency. B2B e-commerce provides the excellent platforms to do just that. The benefits it provides are significant. More and more companies, big and small, are transforming their processes to embrace this change, making their businesses more efficient and competitive.
Visit Motka, where we serve your motion control needs online. That is our way of passing saving to you.