PREPARE FOR THE B2B E-COMMERCE REVOLUTION:

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PREPARE FOR THE B2B

E-COMMERCE REVOLUTION:

FEATURING FINDINGS FROM FORRESTER RESEARCH’S “STATE OF B2B E-COMMERCE” GLOBAL STUDY & LESSONS LEARNED FROM BDI

December 6, 2013 Download handouts (PDF) : www.mdm.com/slides or [email protected] Event Sponsors: Produced by:

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Download handouts (PDF) :

www.mdm.com/slides

or [email protected]

AGENDA

• Introduction – 5 minutes

• Andy Hoar – 20 minutes

• Steve Grzymkowski, BDI – 10 minutes

• Panel dialog (Tom Gale moderator) - 10 minutes

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Download handouts (PDF) :

www.mdm.com/slides

or [email protected]

Speakers

Tom Gale - Moderating

Modern Distribution Management Andy Hoar

Forrester’s Research

Steve Grzymkowski

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Online and Mobile Are Transforming

B2B Commerce

Andy Hoar

Senior Analyst, Forrester Research December 6, 2013

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Key Findings

›

Self-service tools are fundamentally changing

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Key Findings

›

the way B2B customers interact with companies.

›

Selling online and on mobile represent a

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Key Findings

›

the way B2B customers interact with companies.

›

Selling online and on mobile represent a

significant new opportunity for B2B companies.

›

B2B companies that wait too long to implement eCommerce assume a big risk.

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62% of B2Bs:

eCommerce has

fundamentally

changed the way

customers

interact with us

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B2B Customers Want Self-Service Tools

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B2B Customers Want Self-Service Tools

Base: 353 online B2B companies around the world

Research Online

62%

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Research Online

62%

Global Support Online

58%

Global

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Research Online Buy On Phone

51%

62%

Global Global Support Online

58%

Global

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62% 52% 54% 52% Research Buy Research Buy

Majority Of B2B Customers Use Mobile Devices To Research And Buy Products Online

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2011 2016 Mobile 4% 26% Desktop 96% 74% 0% 20% 40% 60% 80% 100% 120% % o f T o tal

Business Internet Traffic

Mobile Will Represent 26% by 2016

2011

Source: Cisco VNI May 2012

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B2B Over Twice the Size of B2C

Source: Forrester Research US Online Retail Forecast, 2011 To 2016, Key Trends in B2B eCommerce for 2013

$252bn $559bn

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Twice As Many Companies Believe B2B Online Will Grow Faster Than B2B Offline

“What do you expect your fastest growing sales channel to be in the next year?”

16% 6%

Next 12 months

Direct to business partners online Direct to business partners offline

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Online-Only Customers Are More Active Than Offline-Only Customers

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Online-Only Customers Are More Active Than Offline-Only Customers

+1

Add items to order

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Online-Only Customers Are More Active Than Offline-Only Customers

+1

Add items to order Order at a higher frequency

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Online-Only Customers Have Higher AOVs Than Offline-Only Customers

Base: 353 online B2B companies around the world (147 B2B companies with greater than 25% of sales online, 156 B2B companies that have been selling online for five years or more)

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Online-Only Customers Have Higher AOVs Than Offline-Only Customers

37%

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Online-Only Customers Have Higher AOVs Than Offline-Only Customers

37%

Global

52%

More than ¼ sales online

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Can Reach Customers More Effectively With Cross-Sell And Up-sell Offers Online vs. Offline

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Can Reach Customers More Effectively With Cross-Sell And Up-sell Offers Online vs. Offline

54%

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Can Reach Customers More Effectively With Cross-Sell And Up-sell Offers Online vs. Offline

47%

EMEA

54%

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B2B Companies Can More Effectively Build Loyalty Online Than Offline

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44%

Global

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65%

More than ¼ sales online

44%

Global

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Opportunities

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Opportunities

›

Revenue upside

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Opportunities

›

Revenue upside

›

Cost savings (including profitable only online)

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Opportunities

›

Revenue upside

›

Loyalty building

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Opportunities

›

Revenue upside

›

Loyalty building

›

International growth

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Traditional B2B Ecosystem (e.g. Dri-Eaz Industrial Dehumidifier) Offline Dist Brand Manu Buyers Production Distribution Consumption

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New B2B Ecosystem

Production

Distribution

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New B2B Ecosystem Online and Offline Dist Distributors (private label) Brand Manu Buyers Production Distribution Consumption

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New B2B Ecosystem Online and Offline Dist Distributors (private label) Brand Manu Buyers Production Distribution Consumption B2C Offline B2C Online B2B Online Pure Play Dist

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Next Steps -- POST

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Next Steps -- POST

• People: Identify key customer segments and envision 2016

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Next Steps -- POST

• Objectives: Set clear and aligned goals

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Next Steps -- POST

• Objectives: Set clear and aligned goals

• Strategies: Employ “ACTIVE” strategies

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Thank You

› Andy Hoar

› Senior Analyst

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BDI

• Industrial Distributor with 192 global branch operations in the U.S., Canada,

Mexico, Europe and Asia, BDI services manufacturing companies throughout the world. Commitments to customer service, technical expertise and quality

products have been our trademark for success for more than 75 years

› Industries

• Automotive, Ethanol, Consumer Food

Processing, Food Machinery, Grain Processing, Meat & Poultry Processing, Fluid Power, Medical, OEM Specialty Services, Oil and Gas, Package Handling, Paper Processing, Power Generation, Waste Water

› Products

• Mechanical & Electrical Power

Transmission, Bearings, Linear Motion Control, Material Handling, Fluid Power, Industrial Supplies, Bulk Chemicals, Retaining/Locking Products, Industrial Hoses & Fittings, Industrial Tools,

Adhesives, Sealants, Lubricants, Safety and Sealing Devices

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BDI

• Have been accepting e-Commerce orders for over 10 years

• Rolling out SAP, starting in Eastern Europe

• Replatforming e-Commerce on top of SAP with Hybris and Endeca

• Multi-lingual

• Multi-currency

• Developed by Rosetta

• Recently started first pilot in Hungary

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