Despite the rapid pace of new ecommerce technology, such as headless commerce, and mounting pressure from digital-first customers, progress is mixed at best for many companies, according to a new survey of 600 manufacturing executives from Epicor Software Corp.

For example, only about 44% of manufacturers are spending more on new digital technologies, while 49% will keep paying the same amount as the prior year.

Although nearly half of all companies describe their company as “somewhat” to “very” modern, only 13% are fully digitized. Nearly 60% still use a mix of ecommerce, electronic business software and paper and manual procedures to conduct business.

“The shift to all-digital workplaces is slowly happening,” the report says. “31% (of manufacturing companies) are still using all paper.”

Other findings include:

• Big data: 41% of companies are gathering and analyzing data company-wide to gain insight into operations.
• Robotics and artificial intelligence: 36% of organizations are using robots and AI to automate manufacturing.
• Augmented reality: 32% of manufacturers are using AR to better see, understand and track data to improve manufacturing efficiency and productivity.

“Those who say their company is ‘very modern’ are more likely to say their company is eager to embrace new technology,” the report says. “Those companies who say their company is not very modern are more likely to say their company is hesitant to embrace technology.”

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And that performance came against the backdrop of labor shortages, supply chain disruption and the impact of more than two years of the COVID-19 pandemic. U.S. manufacturers and distributors grew total B2B sales in 2022 to $14.89 billion. That is up 15.4% from $12.98 billion in 2021, according to the U.S. Department of Commerce.

B2B distributor and manufacturer sales grew robustly in 2022 overall, but most of the growth took place early in the year. By the end of the fourth quarter, sales growth had slowed by about half.

2023 Ecommerce in Manufacturing & Distribution Report

Analysis of US manufacturers and distributors and the state of B2B ecommerce. Includes over 10 charts, new data on digital growth, an extensive overview of each industry, and case studies on Caterpillar, Amazon Business, Global Industrial and more.  

View Details

B2B distributor sales

Last year, the sales that occurred on B2B electronic channels, including electronic data interchange (EDI) totaled $9.14 trillion, a 19% increase from 2021. More important, B2B ecommerce grew faster than total B2B sales and accounted for 13% of all manufacturing sales.

Manufacturers and distributors both grew online last year, but distributors grew much faster than manufacturers. All in, manufacturers grew B2B digital commerce about 15% to $623.3 billion in 2022 from $543.3 billion in 2021. Distributors, meanwhile, grew year over year much faster. Their B2B ecommerce sales growing 25% in 2022 to $1.4 trillion from $1.1 trillion in 2021.

Digital-first customers are transforming the B2B industry and forcing manufacturers and distributors to rethink the way they conduct business. Companies that were once hesitant to embrace B2B ecommerce are now developing new initiatives, updating strategies and upgrading their technology with new cloud-based applications like  headless commerce and AI.

As B2B ecommerce continues to accelerate in 2023, it’s critical for manufacturers and distributors (and the technology vendors that serve them) to find new digital opportunities and solutions to overcome challenges in the market.

Here is more detail on Digital Commerce 360’s 2023 Ecommerce in Manufacturing & Distribution Report.

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Marcel Fairbairn, CEO, GearSource.com

“I would say I wasn’t brought up as a tech founder, I was brought up as a pretty normal, boot-strapping business guy,” says chief executive Marcel Fairbairn, who launched the business in 2002.

That approach has worked well for GearSource, which gets 70% of its orders through online searches and the remaining 30% through live customer service. Relying mostly on email and word of mouth to build business, revenue growth averaged 5% to 7% annually without acquisitions, says Fairbairn, who won’t reveal actual numbers.

“Everything we’ve done is organic,” he says. “We’ve been profitable almost every year.” The only exceptions were in 2008 in the wake of the economic crash and more recently in the fallout from the COVID-19 pandemic.

Customers range from the Super Bowl to Google and Apple

GearSource provides all manner of lighting, audio, video, staging and rigging, and related equipment to vendors servicing live entertainment venues. Ultimate users have included touring bands and mega-events such as Super Bowl half-time shows, and occasionally such large companies as Google and Apple.

More typical purchasers are companies working with nightclubs, other smaller entertainment venues, and wedding-reception halls. In one notable instance of GearSource working in what Fairbairn calls “very high-touch mode,” the country-music star Morgan Wallen needed 100 rare lighting fixtures ASAP. GearSource found them in Singapore and got them delivered to Nashville in six weeks — a quick turnaround given the logistics involved.

GearSource works both ways, providing vendors with the equipment they want and as a market for disposing of equipment no longer needed by the original buyer. In all, GearSource claims 40,000 users, including 5,000 to 6,000 active sellers offering 933 brands and between 30,000 and 60,000 products, according to Fairbairn.

“I would venture a guess that about 98% of our business is B2B,” he says.

GearSource focusing on fast growth

GearSource’s parent company, GearSource Holdings LLC, is based in Miami, but its 17 employees are fully remote. Most are in the United States, with some in Canada, Europe, and Asia.

Now GearSource aims to grow revenue by 10 to 20 times over current levels in three to five years, Fairbairn says. To do that, it’s going to ramp up search and email marketing, employ some unspecified “in-person branding opportunities,” and possibly return to trade shows, which it used in the past but hasn’t recently.

The company shifted into a higher gear recently after  a larger marketplace expressed interest in acquiring it. No deal materialized as GearSource’s would-be acquirer itself became acquisition bait. But the suitor’s interest prompted Fairbairn and his team to take a close look at their operations and business model. They soon saw untapped growth potential.

The platform clearly needed improvements. GearSource had used an in-house platform for 15 years, until 2020, when it was replaced by one developed by a third-party vendor augmented by various plug-ins and custom coding. But while the new platform had some strengths, order documentation sometimes took 30 to 40 seconds to pull up, and it had difficulty handling complex orders,  Fairbairn says.

“We were on a Frankenstein platform,” he says.

Managing a complicated marketplace

There’s no lack of complex orders on GearSource. The marketplace operates in 100 countries, thus “we’re a very complicated marketplace,” says Fairbairn. “Sixty to 70% of our transactions involve more than one currency,” he says, adding that all settle in U.S. dollars. The average transaction is $18,000. The company also has to track taxes and logistical data.

Enter New York City-based Nautical Commerce Inc., a multi-vendor marketplace platform founded in 2020. CEO and founder Ryan Lee had done stints at Apple Inc., where he worked on the Apple Pay payments service, and at Visa Inc. in new products and business development. GearSource decided to take a chance, signing on with the newbie last May and going live on Nautical’s platform in November.

So far, so good

“Speed is one of them,” he says when asked about Nautical Commerce’s advantages. Other improvements include better dashboards and reconciliation processes. “The information is more accurate, the dashboards are very clean and simple,” he says. The platform also gives GearSource customers the ability to create so-called micro-marketplaces for their own customers within the GearSource site, he says.

GearSource accepts credit cards through payment processor Stripe Inc., but most of its transactions are wire transfers processed through Nautical Commerce. GearSource charges fees to sellers based on order size and frequency.

Next up, within a couple of months, is the planned launch of a freight-brokerage subsidiary dubbed GearMoves to handle customers’ transportation and logistics needs throughout GearSource’s global footprint. Buyers will continue to be able to use sellers’ shippers or third-party shippers, but GearMoves will provide another option, says Fairbairn. Also in the works, though Fairbairn isn’t ready to give details, is a software-as-a-service (SaaS) offering.

All of this is part of a drive to keep his online market a go-to place for equipment buyers and sellers. “The show must go on is the overriding theme in our industry,” Fairbairn says.

B2B Ecommerce Handbook

This article is part of special report, B2B Ecommerce Handbook: Formulas for Digital Growth, which is available at no cost from Digital Commerce 360.

Jim Daly is a Mount Prospect, Illinois-based freelance journalist covering business and technology.

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In underground mines and tunneling projects, Normet’s new SmartDrive battery-electric-powered and massive mining and construction equipment comes with benefits similar to those of modern electric cars: “one-pedal” driving and relatively sleek designs emanating from the lack of traditional gearboxes and driveshafts.

Normet’s drive into electric vehicles coincides with its foray into digitalization — two developments the Espoo, Finland-based company highlights in its 2022 annual report as among the critical industry trends supporting the manufacturer’s long-term growth.

“We continue to expand our core process areas, with advances in electrification, digitalization, automation, and technology leadership,” president and CEO Ed Santamaria says in the annual report.

Normet has also positioned itself for growth amid other significant trends impacting its industry: mines moving further underground, an increase in remote locations, and customers expecting more options and ease in dealing with the manufacturer and ordering parts, supplies and services to keep their costly equipment running in top shape.

Pekka Jaarinen, director of digital services, Normet Oy

Digital commerce is critical to addressing these trends, says Pekka Jaarinen, director of digital services.

“We are able to react faster to customer requests, and the customer has better transparency” into the availability of products and services and their order status, he says. “But it has improved our internal efficiency as well.”

Normet’s equipment ranges from multi-ton mobile mining equipment to cement-spraying trucks costing in the tens of thousands of dollars or more; the manufacturer’s new online store provides a quicker and more helpful way to order parts, supplies and services.

In addition, the digital channel extends Normet’s market reach, expands revenue opportunities, and provides a more helpful and accessible buying experience for customers. Moreover, its new ecommerce site runs on technology designed to be highly customizable — an advantage Normet is already using to develop new ways to interact with and serve customers.

Customizing a site based on customer feedback

The manufacturer’s first ecommerce site — launched as a pilot project last year in Australia and extended this year to the United States and Canada — is processing customer orders on a commercetools digital technology platform designed for customization, resulting in increased sales, including upselling and cross-selling transactions, and a 75% reduction in calls to customer service, Jaarinen says.

Normet says the digital Normet Store is helping to both attract and retain customers. The company plans to introduce new features as it learns more about how its customers want to use its new ecommerce channel.

“Our approach is to listen to customer feedback,” Jaarinen says. “We want to take a step-by-step approach to develop features that help make commerce easier for us — but especially for our customers.”

Companies that invest in Normet’s equipment typically lay out extensive capital for their mining or tunneling projects; they rely on steady connections with Normet and their maintenance contractors to order supplies, replacement parts and services to keep their equipment running smoothly.

Normet SmartDrive battery-electric mining equipment at work underground.

“These companies are investing hundreds of millions of dollars for getting the infrastructure in place before they get any money out of the ground,” Jaarinen says. “The environment they operate in is quite harsh, the conditions quite extreme, so they want to make sure that whatever equipment or machines they buy from Normet are maintained and running all the time.”

A better way to order from remote job sites

Normet’s customers, however, have relied for years on phone and email communications between their personnel, contractors and Normet to order what they need from the 65,000 products in the manufacturer’s catalog. But phone and email ordering can be tedious and time-consuming, requiring multiple back-and-forth comments among the several parties to ensure they’re bundling the correct mix of items and services for multi-ton mining and tunneling equipment.

Moreover, with many job sites in remote locations far from Normet service personnel, customers and their maintenance contractors rely even more on electronic communications that are faster and more accurate than traditional ordering methods.

“The customer locations are extremely remote,” Jaarinen says, adding, “So using the digital channels, we can get actually close to the customer and be more personalized. We know what machines they are running; we know what parts should be there. If a customer is trying to buy a part A, we can also say, hey, if you buy this, it makes sense to also replace part B.”

A sample mining equipment product landing page on the online Normet Store.

Because such online interactions are automatic, they avoid situations where human error or forgetfulness fails to recommend the correct products customers need to keep their equipment running, Jaarinen says.

Normet doesn’t break out ecommerce sales transaction figures. However, its ecommerce site’s third-quarter 2022 launch preceded a full-year 22% increase in total revenue to 439.24 million euros (US$480.17 million) for the year ended Dec. 31. Profit for the full year rose 31% to 36.69 million euros (US$40.11 million).

A flexible ecommerce platform for what lies ahead

Normet’s ecommerce opportunities are just beginning, Jaarinen says.

To give Normet the flexibility it needs to keep developing its ecommerce channel, Normet decided to deploy ecommerce technology it figured it could modify as needed to meet future challenges and opportunities.

Its Normet Store ecommerce site, store.normet.com, requires users to log in and runs on the commercetools Composable Commerce for B2B as its primary ecommerce infrastructure.

The MACH-based platform encompasses microservices, an API-first development platform, scalable cloud-based applications, and headless commerce technology. The headless commerce design separates the customer-facing front-end interface from the ecommerce engine and the enterprise resource planning system. The current version of Composable Commerce for B2B was refreshed last fall with “next-gen flexibility” with an API portfolio designed for building a customizable commerce infrastructure, says commercetools chief product officer Mike Sharp.

IT services firm Columbus Global led the commeretools implementation, which took about 4.5 months, Jaarinen says. Developed with responsive web design, the site is accessible via mobile devices but doesn’t have a related mobile app.

Because this was Normet’s first ecommerce site, he adds, the overall deployment of the new ecommerce platform was easier than it would have been if the manufacturer had to replace a pre-existing ecommerce technology.

Smoothing out the purchasing process

Jaarinen says the MACH infrastructure will make it easier for Normet to develop online features and applications customized to customer needs — without having to modify the ecommerce engine or the back-end software.  

One development already helping to smooth the buying process is a feature that lets either a maintenance contractor or the final customer (or both, depending on how they operate) submit an  online request for parts and supplies for a maintenance project on a specific type of Normet equipment. Normet will then return an online list of recommended products with prices more quickly and accurately than would typically be done through phone or email, Jaarinen says.

Normet fulfillment workers preparing to ship orders.

“They can drop that request in place on the ecommerce site, then see the availability and the pricing and also do the purchase,” he says. Normet will consider additional online services through ongoing development projects to introduce more value into the purchasing process, Jaarinen says.

New IoT-backed ordering to come

One project in the works is using the ecommerce platform’s composable architecture and internet-of-things sensors to develop a system for pulling real-time information on the equipment’s operation and need for parts and service. The composable architecture with its APIs and microservices enables Normet to connect to the commerce platform’s commercially available or in-house-developed software modules that, for example, could show customers on Normet’s ecommerce site their equipment’s operating status and any recommended replacement parts, supplies and services.

“We are able to get real-time data from all records, which means we can analyze the wear and tear of the equipment and predict upcoming maintenance,” Jaarinen says. “And once we link this data to the ecommerce store, the customer can see what they need to order. And they can order the parts beforehand to have them on site when they need them.”

“This is not integrated today,” Jaarinen says, “but in the next year, most likely, yes.”

“We aim to be selling more than parts,” he adds. “We want to provide more services as well from the online store.”

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The report, which surveyed 50 leaders in digital and commerce across Europe, asked respondents to identify their main challenges and objectives regarding their digital strategies.

Not surprisingly, the survey revealed that respondents are still in various stages of readiness to meet B2B buyers’ growing preference for digital commerce. While some manufacturers were well-positioned to adapt, others were not and faced many challenges, including not being found online, delivering a dissatisfying customer experience online, and lacking digital maturity and resources.

Forge ahead digitally, or fall behind

While 31% of respondents believe they are ahead of their competitors when it comes to digital maturity, and 2% far ahead, 24% said they were in danger of falling behind. In addition, 44% of respondents believe their digital maturity level is on par with their competitors.

Despite the high percentage of respondents at risk falling behind the competition, respondents showed a willingness to make substantial investments to bring their digital strategies to fruition. A whopping 63% of respondents said they plan to spend up to 20% more than they did the previous year on their digital objectives, and 20% more than 20%.

Another bright spot reflecting manufacturers’ willingness to beef up their digital sales channels is that 58% of respondents have acquired an ecommerce solution, and 59% use EDI and digital marketing tools to generate more leads and sales.

A key driver behind respondents’ willingness to invest in digital commerce is the need to grow their business. Indeed, 41% of respondents cited the need to tap into new revenue streams through value-added products and services such as selling connected machines and metered pay-as-you-use services, the report says.

Enhancing the B2B ecommerce buying experience

Another 24% are driven by the need for new business models and/or adjacent industry offerings. “This demand for companies to evolve their offerings is based on the shift from traditional solutions towards digital ones, where technologies such as IoT and rich data enable new digital business potential,” says the report.

Technologies that respondents plan to deploy as part of their digital strategies include configure, price and quote solutions, which typically work in tandem with CRM platforms and ERP programs, digital customer portals, and 360-degree customer view data platforms. Such solutions enhance the buyer experience and help streamline sales processes and provide better insights into the customer journey.

Manufacturers also realize that in order to thrive in the world of ecommerce they must transform their corporate culture to ensure a digital-first mindset that views ecommerce as a top priority. A large part of that transformation involves breaking down internal data silos so all departments can share customer and sales data to create better customer experiences, and marketing, sales and support strategies, that increase the customer’s lifetime value.

“By bringing together different departments and making sense of available data, companies can purposefully plan and create one consistent, excellent customer experience, and actively embed customer considerations across the enterprise,” the report says.

Without collaboration between departments, it becomes difficult to fully leverage the power of digital selling, the report adds.

For the majority of respondents, the push toward a digital-first mindset is already occurring, with 56% saying they have established basic structures for a company-wide digital strategy and roadmap. In addition, 24% say they have a systematic change management process in place when it comes to digital commerce.

Peter Lucas is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy.

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Kris Harrington

The most important reason you need to implement digital self-service technologies now is that we live in an increasingly digital-native world.  This shift is quickly changing customer expectations and how they want to do business.

According to a recent report by technology research and advisory firm Gartner Inc., “Digital-native expectations will influence every industry, and companies that ignore them will be left behind.”

In order to stay competitive and meet the expectations of your customers, you must implement digital self-service solutions that provide convenient, accessible, and efficient information to your customers.

So, what do we mean when we talk about digital natives and living in a digital-native world?

To explain this trend, it’s crucial to understand the differences between a digital native and a native analog. A digital native (or person born after 1995) is typically defined as someone born after the widespread adoption of digital technologies, such as the internet and mobile devices. This means that they have grown up with technology as a part of their daily lives and may be more comfortable using digital tools for a variety of purposes.

A native analog (sometimes called a digital immigrant and a person born before 1995) is someone who was born before the widespread adoption of digital technologies. They may have had to adapt to using new technologies as they were developed rather than growing up with them as a part of their daily lives.

Please note these terms are not concrete. There are many factors that can influence how comfortable someone is with using technology, such as access to digital tools, education level, and personal preferences. Generally speaking, these terms help us to understand the changes we are experiencing in the world today.

If we think about the rise of digital natives, we can use various examples to illustrate how a digital native may behave differently from a native analog.

Think about how you’ve changed your business to adapt to these new behaviors:

1. Shopping habits

Digital natives are more likely to shop online, using their smartphones and other digital devices to research and identify the right products, compare prices, and make purchases. Native analogs, on the other hand, may prefer to shop in a physical dealership or depot and use printed manuals or brochures to research products.

2. Communication

Digital natives are more likely to communicate via digital channels, such as social media, instant messaging, and email. They also prefer short-form content, such as memes and emojis, over longer-form written communication. Native analogs, by contrast, may prefer face-to-face conversations, phone calls, or even written cards and letters.

3. Education

Digital natives often learn differently from analog natives, using digital tools like online courses and interactive educational software. They may also be more comfortable with self-directed learning and less reliant on traditional lecture-style instruction. Analog natives may prefer a more structured, teacher-led approach to education.

4. Work style

Digital natives often have a different work style, favoring remote work, flexible schedules, and digital collaboration tools (Slack, Zoom, Teams, etc.). They may also be more comfortable with a less hierarchical work environment and less formal communication. Native analogs may prefer a more structured in-person work environment with clear hierarchies and more formal communication.

5. News consumption

Digital natives often get their news from online sources, such as social media and news websites, and are more likely to fact-check and verify the information before sharing it. Native analogs may be more likely to get their news from traditional print media and may be less skeptical of the information they encounter.

6. Entertainment

Digital natives consume entertainment differently from analog natives, often streaming movies and music online. They also tend to prefer short-form content, such as YouTube videos and social media stories, over longer-form content, like feature films or albums.

One example of how the world has become increasingly digital is the widespread adoption of smartphones and mobile devices. According to a report by Pew Research Center, 85% of adults in the United States now own a smartphone. This figure is even higher among younger generations, with 96% of adults aged 18-29 owning a smartphone. The adopted use of smartphones and other mobile devices has fundamentally changed how people interact with each other, with businesses, and with the world around them.

These are just a few examples, but they illustrate how the rise of digital natives has transformed consumer behavior, workplace culture, and even how we learn and communicate. They also demonstrate that if you don’t adopt some of these new ways of doing business, you will exclude a growing population of customers and employees.

Digital self-service solutions are essential in today’s digital native world. It’s more important than ever to implement these solutions now.

About the author

Kristina Harrington is the co-founder and CEO of GenAlpha Technologies, which provides digital commerce technology for manufacturers. Prior to GenAlpha, Kris worked for more than 10 years in leadership positions at two large multinational original equipment manufacturers, Bucyrus International and Caterpillar, supporting the mining industry. In her various positions, she worked with internal stakeholders, dealers, and customers to deliver business results both in aftermarket and equipment sales. She can be reached at kharrington@genalpha.com.

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Ron Flynn, manager, web systems and integrations, Bradley Corp.

Ron Flynn is manager of web systems and integrations at Bradley Corp., a manufacturer of commercial plumbing fixtures and washroom accessories and industrial safety equipment.

Flynn will be a speaker in the “The Integration Game: ERP, PIM, Ecommerce” session June 21 at the EnvisionB2B 2023 Conference & Exhibition in Chicago.

DC 360: What is driving B2B companies like Bradley Corp. to expand online?

Flynn: Our main driving factor has been to make it as easy as possible to do business with Bradley Corp. We want to provide tools that will empower our customers to view and process quotes and orders just as we would internally at Bradley.

We want to be able to say that everything our customer service team has available to them for quote and order management the customer also has available.

DC 360: What are your biggest internal or and external barriers?

Flynn: Change management is our sole barrier both internally and externally. And what this really means to me is that we need to manage the development pace to production release. We can add a dozen new features that we believe will help our customer base, but if they cannot consume the functionality at the pace we are releasing, then we are going in reverse and creating a system that is counterproductive to our customers.

DC 360: What are the chief gains you’re realizing?

Flynn: Creating customer satisfaction by providing the information they need at the times they need it, such as warehouse/plant inventory availability, live freight/logistics calls to our primary carriers, and pricing — discounting and providing the ability to convert to order from each operational point in time, whether it’s a specification or quote.

DC 360: What is the most valuable piece of advice you have on how to launch online B2B sales or increase them?

Flynn: Vision —  have a vision of where you are going, and make sure that the largest piece of that vision is the voice of the customer. Having the shiniest tool in the box means absolutely nothing if no one is willing to pick it up and use it.

DC 360: Regarding COVID-19 and supply chain disruption, what is the biggest adaption your company has made?

Flynn: We have partnered with our carriers and connected to API endpoints that allow us to calculate freight costs live during quoting and ordering for immediate feedback, giving our customers true costs when they need them the most.

DC 360: Looking back over the past few years, is there anything you wish you had done differently in ecommerce?

Flynn: We should have taken a cloud-first approach with the server architecture for ecommerce. This would have allowed us to scale our customer needs quickly and efficiently. We will move our on-premise architecture this year into next year, but we’ll have doubled our efforts in doing so.

DC 360: What excites you the most in new digital commerce technology?

Flynn: The technology that is going to revolutionize and disrupt digital commerce that is just taking foot is model-based 3D configuration and visualization. Currently, WebGL and soon the UnReal 5.x engine will do for ecommerce what artificial intelligence is doing for customer-driven analytics.

DC 360: Going forward, what do you see as the most significant commerce challenges and opportunities?

Flynn: We feel that one of the most significant challenges is keeping the business technology cohesiveness among the organizational departments. Mentioned earlier was the challenge of our customers absorbing the features we release Now take that and imagine how much friction it creates among cross-functional teams and departments, given resource load and capacity, and that we are not driving our departments with the exact same goals and time to market.

Ron Flynn will speak at EnvisionB2B 2023 in the session, “The Integration Game: ERP, PIM, Ecommerce,” on Wednesday, June 21.

Jim Daly is a DC360 contributing editor covering digital business technology and strategy.  

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Ash Trasi, director, IT, web and ecommerce, Illumina Inc.

Ash Trasi is director of information technology, digital experience, for web and ecommerce at Illumina Inc., a life sciences tools manufacturer focused on sequencing- and array-based products and services for genetic and genomic analysis.

Trasi is a speaker in the “Why We Chose Headless” session on headless commerce technology June 21 at the EnvisionB2B 2023 Conference & Exhibition in Chicago.

DC 360: What is driving B2B companies like Illumina to expand online?

Trasi: Digital transformation is a key factor and a driver in our world today. Digital transformation may mean different things to different companies and leaders, but in the world of B2B businesses it means opening avenues to customers and making it easier for them to do business. To some, online expansion may mean having a website through which customers can transact, but online commerce is way beyond just a direct site to transact through.

Opportunities such as e-procurement (including punchout, hosted catalog), vendor managed inventory, or even point of sale systems are some other channels through which customers can and may even prefer to interact with us.

DC 360: What are your biggest internal and/or external barriers?

Trasi: To achieve channel adoption to a level that we want is a very hard task. Many of our customers have adopted our online channels quite organically. Some of our other customers still prefer calling in and talking to a real person in customer service or sales. It’s a shift in mindset, and to create that kind of paradigm shift our omnichannel experience has to be spot-on and geared in every way to make our customers’ job easier and create a delightful customer experience.

We are getting there.

DC 360: What are the chief gains you’re realizing?

Trasi: Mainly operational efficiency for our internal customer care and sales team. Since a lot of transactions have shifted to our online ecommerce channel, our very talented internal teams can now focus on their real jobs instead of being order-takers for our customers. Self-service is another win for us and our customers, since they can now find all their information, from orders to upcoming shipments to invoices and quotes, all online without any kind of hand-holding from our internal customer service teams.

DC 360: What is the most valuable piece of advice you have on how to launch online B2B sales or increase them? 

Trasi: Prior to even selecting and launching an online sales channel, first know your customers. It is important to understand what kind of service they would like to get from you. What are their pain points? Do they want an omnichannel experience to do business with you? These are some of the critical questions one must answer before embarking on the journey of creating any kind of a B2B online sales channel.

Also, you should know your products and offerings. Can you bring your entire product portfolio online? Or are there more opportunities to transact low-dollar, high-volume products online while keeping a more personalized, white-glove experience for high-dollar, more expensive products via your sales force. These considerations will drive what kind of online experience you will end up offering your customers.

DC 360: Regarding COVID-19 and supply chain disruption, what is the biggest adaption your company has made?

Trasi: The supply chain disruption caused during the pandemic is truly an unfortunate sequence of events that no company has control over completely. However, through our ecommerce channel we have been able to take a few measures to build customer trust by providing robust and valuable content. We provide accurate information via our “Available to Promise” capability so that customers can make quick decisions about their inventory and purchasing cadences — self-service capabilities that again build customer trust and confidence and provide them with information that helps them make smarter and better purchasing decisions.

These are just some of the capabilities that we have made available to combat the disruption caused by supply chain issues.

DC 360: Looking back over the past few years, is there anything you wish you had done differently in ecommerce?

Trasi: If there is one thing I would change, it would be going to headless commerce earlier. Although we have implemented headless commerce far ahead of 90% of the companies in our space, we struggled a lot with monolithic systems that could have been avoided by earlier adoption.

DC 360: What excites you the most about new digital commerce technology?

Trasi: The modular nature of these latest software tools that provide ecommerce capabilities is by far the best thing that digital commerce has finally adopted. Headless, RESTful application programming interfaces have been there for decades. This architectural shift from monolithic systems to modular, API-first, composable and headless constructs is very exciting now for any professional in the ecommerce space.

DC 360: Going forward, what do you see as the most significant commerce challenges and opportunities?

Trasi: Channel adoption by customers remains my No. 1 challenge to solve for. It’s not easy to bring about a mindset change in people who are used to conducting business a certain way and ask them to completely abandon their old ways and adopt new ones.

But with this challenge comes the opportunity of creating and implementing technology that delights customers, wins their confidence and trust, and provides them with content that is meaningful and actionable. Introducing artificial intelligence and machine learning in our systems is the next frontier in providing that customer experience, which will pull our customers towards digital commerce like a magnet.

That is easier said than done, but I like the challenge, so let’s go!

Ash Trasi will speak at EnvisionB2B 2023 in the session, “Why We Chose Headless Commerce,” Wednesday, June 21.

Jim Daly is a DC360 contributing editor covering digital business technology and strategy.  

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Tom Funk, ecommerce director, Ann Clark Ltd.

Tom Funk, ecommerce director for cookie cutters manufacturer Ann Clark Ltd., has applied his ecommerce expertise at several online companies including Keurig Green Mountain and Vermont Teddy Bear.

Now, as the ecommerce director at a bakery supplies company, Funk is helping a manufacturer steeped in retail ecommerce experience also grow its B2B online sales. Here he shares his insights on growth strategy.

DC 360: What is driving B2B companies like Ann Clark to expand online?

Funk: We began over 30 years ago in Vermont, hand-making metal cookie cutters, selling primarily to gift stores and specialty retailers through a network of sales representatives and wholesale direct-mail catalogs. About 15 years ago, our B2C ecommerce business just took off on AnnClark.com and through Amazon. And it brought our wholesale business along for the ride. Growing nationwide brand visibility, plus our increasing proficiency with B2C digital commerce operations and logistics, website management, email marketing, all helped us grow our B2B business online.

DC 360: What are your biggest internal or and external barriers?

Funk: I bet we’re not alone in feeling our wholesale business is sometimes the poor stepchild to B2C ecommerce. It’s challenging to ensure our B2B marketing, website usability and design, and tech investments don’t lag the investments made on the B2C side.

Externally, the kitchen and home categories have been on a roller-coaster ride. Baking boomed during Covid-19 quarantines. But it was a tough time for our brick-and-mortar retail customers. Now, retail is back, but not without economic challenges like inflation and changes in consumer behavior.

DC 360: What are the chief gains you’re realizing?

Funk: Much of our recent growth comes from product line expansion. We’re the country’s biggest cookie cutter manufacturer. But some of our strongest growth comes from baking supplies and ingredients like Ann Clark food coloring, icing mix, baking parchment, piping bags and rolling pins. New products attract new wholesale customers and also give existing customers more ways to grow their business with us. We just launched large 4.5-ounce bottles of food coloring aimed at commercial bakeries, culinary programs and food-service organizations. We are superfast to market with new ideas, getting new products onto Amazon B2C and our Wholesale website in a fraction of the time it takes at other companies where I’ve worked.

DC 360: What is the most valuable piece of advice you have on how to launch online B2B sales or increase them?

Funk: Just get started and learn by doing. We leveraged B2C ecommerce strengths and applied them to B2B without overthinking the special requirements of B2B. There will always be opportunities to optimize your B2B website in future iterations with special tools like recommended assortments and quick-reorder.

DC 360: Regarding COVID-19 and supply chain disruption, what is the biggest adaptation your company has made?

Funk: Made-in-USA is Ann Clark’s superpower. It has been for 30 years. So, when COVID-19 supply chain disruptions hit, we were in a perfect position to maintain dependable supply and short lead times. We’re passionate about making everything ourselves, right here in America. Our cookie cutters are made of U.S. steel and don’t have to sail for weeks and weeks across the ocean before getting into stores. Our food coloring and other baking supplies are certified food-safe and made at our food production facility in Rutland, Vermont. It didn’t require any adaptation: We were ready in the batter’s box when that pitch came across the plate!

DC 360: Looking back over the past few years, is there anything you wish you had done differently in ecommerce?

Funk: I wish we’d realized sooner how effective and profitable our wholesale ecommerce operations could be,  compared to the B2C side of the business. There are still opportunities we’re just beginning to pursue.

DC 360: What excites you the most in new digital commerce technology?

Funk: Original content + omnichannel strategy. We’re creating a lot of original digital content — how-to videos and tutorials — and publishing it on whatever digital platforms our consumers use. Ann Clark embraces omnichannel. We have no preference or desire to control whether consumers buy from our website, or from Amazon, or from one of our wholesale customers. We want to spread the joy of baking, provide solutions and distinguish the Ann Clark brand from cheap importers that view products like cookie cutters as a commodity, and are less in tune with our baking holidays, traditions and occasions. I strongly believe that authentic, digitally-active brands like Ann Clark make the best selling partners for retailers.

DC 360: Going forward, what do you see as the most significant commerce challenges and opportunities?

Funk: One challenge is decreasing trackability of Google and Meta ad campaigns, and what a cookieless web looks like for marketers. On the flipside, I see opportunities in SMS text marketing, social commerce and influencer programs. I’m also cautiously interested in Amazon B2B as a growth opportunity.

Tom Funk will speak at EnvisionB2B 2023 in the session, “Avoiding Ecommerce Mistakes: Do What I Say and Not What I Did,” on Wednesday, June 21.

Peter Lucas is a DC360 contributing editor covering digital business technology and strategy.

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The roster of industry thought leaders, movers and shakers is now nearly all set, and our latest speaker additions showcase even more that EnvisionB2B is sparing no expense in vetting and recruiting the best analysts and practitioners in the industry to give attendees helpful, useful, practical best-practice advice they can take and use now to help their organization achieve excellence in B2B ecommerce.

Meet our new speakers:

Our most recent update of industry thought leaders, in alpha order, includes:

Dan Banks
Founder
Domani Strategies

Gene Carbonara
VP, Ecommerce & Digital
US Foods

Kellie Casey
Manager, Aftersales Communications and Ecommerce
Hyster-Yale Group

Val DuVernet
Senior Director, Digital Strategy & Optimization
McKesson

Tom Funk
Ecommerce Director
Ann Clark Ltd.

Shep Hickey
Founder & CEO
Bryzos

Marylou Hornung
Director, Sales Operations
Bendix Commercial Vehicle Systems

Kyle Kaiser
Founder
Our Forest

Brooke Logan
Director, B2B Digital
NAPA (Genuine Parts Company)

Doug Novack
Managing Director, Business & Industrial Markets Practice
Google

Jordan Nussbaum
Chief information officer
Midland Industries

Nick Ostergaard
Senior Manager, Head of Digital Advanced Services
Toyota Material Handling

Stu Peterson
VP, Inventory Management & Supply Chain
RC Willey

Linda Taddonio
Founding Partner
IQ Acceleration Inc.

Joe Thomas
Sr. Product Owner, Catalog MDM
Genuine Parts Company

Barbara Winters
VP, Principal Analyst
Forrester Research Inc.

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The post Toyota, Bendix, McKesson and US Foods join EnvisionB2B’s speaker lineup appeared first on Digital Commerce 360.