The world is in the wave of a big shift– from a crisis, to uncertainty, to continuity and revival. This is when suppliers and buyers will face the harshest tests and the best opportunities. Get to a B2B marketplace to navigate them with ease; this is the right time to get on an online marketplace for your business.
Nobody is sure how long the COVID-19 impact will last. But one thing is certain. Even in these months of constant guessing and volatility, businesses will continue to face significant disruption in their usual operations. McKinsey has highlighted well how the crisis will impact businesses and their short-term and long-term strategies.
Some companies will confront business underperformance while the pandemic lasts. Some, with exposure to China, are still grappling with the supply chain crisis. As lockdowns fluctuate, open, slide back, and experience the flux, what is coming next is a major operational disruption. That will be accompanied by shifts in consumer demands and behavior especially for industries like FMCG, manufacturing, retail, life sciences, and automotive.
All this has made a B2B online marketplace the go-to destination to solve immediate and long-term business concerns.
If we boil this down to some key changes relevant for suppliers and buyers, here are some areas worth considering:
- A McKinsey survey of B2B businesses in 11 countries reveals that B2B companies see digital interactions as 3X more important to their customers than traditional sales interactions.
- Nearly 90% of sales have moved to a digital model, and over 50% believe this is as good or more effective than traditional sales models used before COVID-19.
- Businesses are open to exploring new supply partners and fresh geographic regions for their B2B demands. Some of them are under severe financial and operational stress. Finding the right source and industry partner is a critical decision now.
- The discipline for short-term cash flow monitoring is high now. Working capital challenges make it important for companies to plan their inventory build-up. That means any potential risks with supplies are just out of the question.
- The regular supply chain has been disrupted. There are partial lockdowns still underway, with each State rolling its own COVID-compliance rules, thus restricting the movement of men and materials. This means the business has to have multiple suppliers and services to keep offering uninterrupted service.
- This is the best time for redefining the chain of customers, suppliers, contractors or alliance partners.
- Companies are in the process of assessing financial and operational risks in view of direct cost escalations and their impact on overall product margins. Negotiations and partner relationships assume a new level of impact now.
- This is also a time when companies are reconsidering the way they looked at tier-one and tier-two suppliers. Some sectors, such as automotive and pharmaceutical, highly depend on third-party suppliers.
- The post-lockdown phase will be a crucial one for global businesses. In the fierce pace of business continuity and resilience, the entire network of suppliers and buyers would undergo a new equation of sorts.
A B2B online marketplace can help them meet these challenges in a simple and cost-effective way. Something like TradeLeaves.com and its unique solution called BLISS (Business Listing and Information Services). It can elevate online visibility for B2B businesses. This is where businesses can get fast and relevant enquiries from verified buyers. And a complete digital experience with quick onboarding support.
If there was any time to find your spot in an integrated and B2B online marketplace platform, that time is now. Right now.