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Jochen Breunig Consulting Director, Sitewards GmbH - - PowerPoint PPT Presentation
Jochen Breunig Consulting Director, Sitewards GmbH - - PowerPoint PPT Presentation
Jochen Breunig Consulting Director, Sitewards GmbH jochen.breunig@sitewards.com B2B E-Commerce Challenges in Manufacturer/Wholesale/Dealer Environments Case study: AGENDA 1. Special Challenges for German Mittelstand 2. Success patterns 3.
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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
- 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
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