We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2022
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2022
    • Upload Your Video
Home » Study: B2B industrial distributors losing ground to e-commerce sites
newsworthy

Study: B2B industrial distributors losing ground to e-commerce sites

June 13, 2017
DC Velocity Staff
No Comments

Industrial distributors are scrambling to fight off a challenge from asset-light e-marketplaces by adopting sharper mobile offerings and upgrading their customer service, a new study shows.

Vendors of corporate supplies and equipment have traditionally reached their business-to-business (B2B) clients through an inventory-heavy model, but that model is failing to connect with a new generation of millennials who prefer to bypass distributors and order parts directly from manufacturers and e-marketplaces, according to a white paper from UPS Inc. titled "UPS Industrial Buying Dynamics Study: Buyers Raise the Bar for Suppliers."

The change comes as millennials—defined in this study as those aged 21 to 34 years old—enter the workplace with tech-savvy expectations of bypassing the middleman and working with the manufacturer.

That demographic shift is revealed in survey results showing that 81 percent of buyers have purchased directly from manufacturers, up from 64 percent in 2015, the last time UPS compiled this report. Likewise, 80 percent of buyers are likely to shift to suppliers with a more user-friendly web presence, up from 72 percent two years ago. And 75 percent of buyers surveyed have shopped at an e-marketplace, soaring from just 20 percent in the 2013 report, the first year of the study.

"With e-commerce, industrial buyers can choose from numerous suppliers with the click of a button, leaving the traditional business-to-business distributor model threatened," Matthew Guffey, vice president of UPS segment marketing, said in a release. "Maintaining the status quo, even just for now, is not an effective solution. Distributors have to up their game."

The white paper identified four main ways for distributors to stay competitive. In order to reach these young corporate buyers where and how they want to interact, industrial distributors must

  • consider strategic investments in new services
  • strengthen e-commerce capabilities, particularly for mobile ordering
  • leverage a logistics provider's global network to ramp up service more quickly through a partnership
  • provide post-sales support, such as assistance with returns, training, and on-site maintenance or repairs

One of the e-marketplaces exerting pressure on traditional industrial distribution channels is none other than the online retailing colossus Amazon.com Inc., which launched a B2B wholesale site called AmazonSupply way back in 2012. Now known as Amazon Business, the pOréal offers a catalog of products and services tailored to business buyers, such as bulk discounts, multi-user accounts, purchasing analytics, and tax-exempt buying for qualifying organizations.

Technology Purchasing/Procurement
KEYWORDS Amazon.com UPS
  • Related Articles

    UPS, Inxeption team up to streamline B2B e-commerce

    Study: companies convert idle retail sites to last-mile fulfillment facilities

    B2B sellers plan e-commerce service push in 2021

Recent Articles by DC Velocity Staff

Geek+ plans increased R&D in warehouse robots following $100 million funding

Carrier app streamlines freight procurement

UPS continues investments in lucrative healthcare arm

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • FedEx agrees to buy 10% stake in Berkshire Grey

  • The robots are here. Now what?

  • No vacancy at the warehouse

  • XPO says planned spin-off will be called RXO

  • Shippers, battling escalating packaging costs, look for answers

Now Playing on DCV-TV

B733ed1b 0136 43ce af0c 290a6166b91b

With a freight recession likely, should your freight costs be going down?

DCV-TV 4: Viewer Contributed
With recent reports that the freight market appears to be softening, I’ve received some interesting emails and calls from logistics executives. They've shared some questions they've fielded from other C-Level executives who have seen reports from consultants or news articles and now are asking: “Why haven’t our...

FEATURED WHITE PAPERS

  • Choose the Best Auto ID Technology for Tracking RTIs

  • 8 ways your facility can benefit from Hyster Reaction

  • Why Use RFID to Track RTIs

  • THE NEW WAY TO WAREHOUSE: 4 Innovations in Automation & Robotics to Boost Warehouse Productivity

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2022. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing