When you’re a company that sells products in bulk to other businesses, you have a lot riding on each order. Consider this comparison of business-to-consumer (B2C) and business-to-business (B2B) orders…
With B2C orders, a late, improperly packaged, or otherwise unsatisfactory order is a problem, but it typically only involves one customer and a handful of products at most. In contrast, a single B2B order can involve hundreds of products valued at tens of thousands of dollars, and issues with the order can have a major financial and reputational impact, such as inventory shortages, loss of sales, customer dissatisfaction, and costly chargebacks and penalties from retailers and distributors.
This is why it’s critical for product suppliers to have a seamless B2B fulfillment process through every point in the supply chain. Whether you’re working with a B2B fulfillment services provider or handling these operations in-house, it’s important that you review your practices and processes with a fine-toothed comb to ensure maximum efficiency and quality assurance.
Review this B2B Fulfillment Services guide to learn how you can streamline your process, getting your products to your customers on time, in the right quantity, and at the best cost for your company. We’ll start by covering the basics and then going into specific strategies you can leverage to optimize your B2B fulfillment efforts.
B2B fulfillment is the process of one business processing and sending products to other businesses instead of directly to consumers. B2B activities usually involve storing, picking, packaging, processing, and shipping products to manufacturers, retailers, and distributors. In order to execute B2B fulfillment, you must also be prepared to receive in large quantities from multiple suppliers.
Common users of B2B fulfillment services include retailers, manufacturers, and distributors. Businesses may choose to work with a third-party logistics (3PL) company that offers B2B fulfillment services or they may prefer to handle these operations in-house.
B2B fulfillment logistics can be especially complex, particularly because they involve:
In contrast, B2C fulfillment orders (or similarly direct-to-consumer (D2C) fulfillment) tends to include significantly lower product volumes per order, more straightforward shipping logistics, and individual, non-contractual purchases.
With so many moving pieces involved in B2B fulfillment, process is more important than ever. You can have superior products and endless value to the businesses you serve, but these value propositions will quickly become overshadowed by a poor fulfillment experience.
By ensuring you have a buttoned-up supply chain strategy, you can keep your customers happy while maximizing efficiency for your company, which can lead to potential cost savings and business growth. To create a more streamlined B2B fulfillment process, you will need:
Companies fulfilling B2B orders require the flexibility of sizable warehouses that can easily handle large volumes of inventory moving in and out of their facilities. Look for a warehousing solution that has:
With B2B fulfillment, you’re likely going to need solutions that extend beyond simple over the road (OTR) freight transportation. Make sure your team has access to a wide range of solutions, including easy access to shipment via air, ocean, and rail along with export capabilities for international orders. When choosing a warehouse or a 3PL, look for locations that are conveniently located near major transportation hubs of all different types.
The most innovative and efficient companies are those that leverage advanced technology for their B2B fulfillment services. The larger your operations are, the more challenging it can be to maintain precision and accuracy within your storage, inventory, and shipment logistics. Fortunately, technology can simplify the process of monitoring storage space conditions, tracking inventory, managing warehouse workflows, automating orders, and much more. Consider how solutions like sensor-equipped hardware, warehouse management systems (WMSs), and electronic data interchanges (EDI) can help provide your team with real-time data, performance analytics, and automation that can maximize efficiency for your team. If you work with a 3PL, see what technology they offer and ask about their ability to integrate with any systems you’re already using.
Whether you build your team in-house or you work with a 3PL, make sure those who are leading our operations understand the intricacies of the industry or industries you’re working in. You may be shipping products that are highly regulated, such as food and beverage products, pharmaceuticals, or other chemical products, and you’ll want to ensure your storage facilities and supply chain logistics are set up to keep your company within legal compliance. See to it that your in-house or B2B fulfillment services provider has proper training, experience, auditing, and certifications to maintain the highest level of quality assurance.
When you partner with 3PL with a strong reputation in B2B fulfillment services, you tap into an all-in-one solution that can save your company time and hassle. Any 3PL company you work should offer a diverse range of support services to address all your B2B fulfillment needs — from warehousing to transloading and cross-docking to reverse logistics and more. Your partner should also have an unwavering dedication to process, meaning they are committed to the highest level of efficiency and accuracy within their supply chain logistics.
Keep these strategies in mind as you determine the best approach for your company’s B2B fulfillment operations. You should consider your fulfillment needs today as well 5, 10 or even 15 years down the road, and choose the strategies that will help your business succeed.
Porter Logistics is a 3PL and B2B fulfillment service provider that simplifies the process of getting your products to your business customers. We’re a Good Manufacturing Practices (GMP), food grade, and HAZMAT-certified company that offers a variety of services that could support your B2B fulfillment infrastructure.Learn more about what Porter Logistics can do for your business.
