Dr. Bob: But what about the bureaucracy that seems to invariably slow everything down? Inspections, custom forms, clearances, shipping manifests and the like?
Chetan: On the B2B side of e-commerce this is all coming online. It’s an issue of scale. With such large volumes moving literally around and across the world, all the systems are adapting. There is a real push out there in the B2B world to move online, not only for the speed improvements but also for the accuracy of the information and the ability to track the timing of movement within the supply chain.
E-commerce connects all the entities in the supply chain together. Everyone can know precisely what each other one is doing, and can intervene if and when problems arise. So now, as a manufacturer I know there is a problem and I help fix it immediately rather than have a shipment of parts arrive only for me to then find out there was a problem.
And transparency is key. Each entity is responsible for their jobs in the process flow so that every piece can work in tandem and in sequence.
Dr. Bob: Thanks for that explanation! One last question: if B2B e-commerce is exploding, what is holding back B2C?
Chetan: It’s a combination of factors. Consumers can shop for pretty much everything online now, but they still want to walk into a store and touch and feel. They may do their research online, but they are still enjoying the tactile experience of shopping. The trend is moving, but very slowly.
Dr. Bob: What needs to happen to improve the transition rate?
Chetan: Online retailers have to find ways to increase both security and trust for consumers. And they need to be better organized internally by being proactive and more dynamic. In B2B, e-commerce is moving large quantities of a relatively small number of different items. In B2C, everything is being sold in small quantities. More e-commerce in B2C will require systems and can manage and fulfill in that environment.
Dr. Bob: Thank you, Chetan. How can readers contact you?
Chetan: They can visit www.digitalsabre.net or if they email you, Dr. Bob, on your Contact form, I’m sure you will pass it on to me.
Dr. Bob: Yes, I will!
Comments welcome!
Dr. Bob
