Emily Newton

Automated guided vehicles (AGVs) have become more common at supply chain locations worldwide, transporting containers and other loads between ships, trucks, rail cars and warehouses. Why are more leaders using them? Most use cases relate to relieving congestion and improving operations when ports experience record-setting traffic levels. Decision-makers recognize how AGVs can streamline their supply chains, keeping containers moving and preventing costly delays.

Accelerating the Movement of Goods

The supply chain’s persistent labor shortage can cause staffing crises that are particularly impactful during peak periods. Some leaders have deployed AGVs for material handling tasks, finding that such efforts help them maintain high productivity.

One example came from China’s Ganqimaodu land port. Each AGV moved between this port and a Mongolian coal stockyard, carrying two standard containers of imported products along a 1.86-kilometer route. An AGV takes 50 minutes per round trip and travels up to 25 kilometers per hour.

The AGV operator using them in China has 30 in its fleet, using 24 each weekday. They move 10,400 tons of coal daily during 160 total round trips. Additionally, there are 30 AGVs in Mongolia. Supply chain managers believe that using all 60 simultaneously will allow for achieving a 15-million-ton transport capacity.

To provide perspective on the overall coal-related activity at the port, leaders said each arriving truck holds up to four standard containers and makes four to six round trips per month. This initiative was the first instance of AGVs used at a land port for cross-border transportation, showing the potential of such applications.

Examples such as this show how AGVs can minimize supply chain staffing shortages, keeping each port as productive as possible during those challenging times. Moreover, AGVs can support other automation projects to relieve labor needs.

Japanese officials plan to address the labor shortage with a conveyor belt from Osaka to Tokyo. The so-called Autoflow-Road project would include infrastructure above and on the sides of roads, as well as tunnels underneath major highways. Estimates suggest this system could move loads equal to that of 25,000 trucks daily, and that each container placed on the conveyor belt would hold up to 1 metric ton of goods.

Facilitating Improved Forecasting

Multiple partners often handle goods moving through supply chains, especially when those loads require multimodal transport solutions. Clients understandably want progress updates on their container loads so they can plan associated operations accordingly. Managers frequently deploy connected technologies to meet those needs.

For example, the United Kingdom’s Port of Dover has an advanced digital twin that predicts the associated tidal flows and weather conditions, supporting safe arrivals and departures. That tool complements a landside digital twin that optimizes traffic flows and port operations while supporting decarbonization and energy efficiency efforts. Such visibility enhances predictions and reduces the reliance on guesswork. Supply chain clients benefit by passing on more accurate information to their customers, increasing the likelihood of repeat business.

People worldwide have warmly embraced online purchasing, appreciating its convenience and efficiency. In 2023, U.S. B2B ecommerce sales surpassed $2 trillion and U.S. retail ecommerce sales topped $1.1 trillion. And analyses suggest global retail ecommerce sales will surpass $8 trillion by 2027. Shoppers who receive correct estimates of incoming parcels can adjust their schedules accordingly, remaining available when they arrive.

Improving Resilience

Supply chain experts frequently assess their business models, identifying new ways to protect their networks from shocks that could severely disrupt their operations. Many search for process improvement options, knowing that even small tweaks can significantly improve outcomes.

These professionals must focus on the things within their control to minimize the effects of those that are not. Then, they remain better equipped to handle the various fluctuations common to their industries.

Freight indexes are nearly 10 times higher than pre-COVID-19 levels. However, leaders who use AGVs and other automated tools to strengthen their supply chains have more oversight and influence over the impact of supply chain fluctuations. Improvements could free up money in the budget for aspects outside their control.

Decision-makers may implement AGVs as part of more-extensive automation strategies, knowing targeted improvements will keep them competitive and profitable. A logistics company did that to prepare for Singles Day, which has become one of China’s most notable online shopping days. Business leaders created a robust, end-to-end system to support the supply chain from first-mile pickups to last-mile deliveries.

That all-encompassing effort allowed the enterprise to deliver more than 200 million parcels to customers who shopped for the occasion. AGVs played a significant role in the success. A single Thailand warehouse has 100 of the machines, which collectively reduce employees’ walking time by 90%. This example shows that AGVs can support higher efficiencies along the supply chain.

Planning AGV Utilization

Today’s supply chains pose increasing challenges, but automated guided vehicles can overcome many of them. However, any AGV-related plans must carefully consider worker training, traffic flow, tech infrastructure and other necessities.

Addressing those matters early in the process boosts the chance of success and provides a strong return on investment. Getting inspired by supply chain partners currently using AGVs in their processes is an excellent way to explore what is possible.

About the author:

Emily Newton reports on how technology disrupts industrial sectors. She’s also the editor-in-chief of Revolutionized, covering innovations in industry, construction, and more.

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John Carte, CEO, Relevant Industrial

Relevant Industrial designed and launched the B2B ecommerce site “as a testament to our commitment to innovation and customer-centricity, CEO John Carte says. “We are excited to offer our customers an easier, faster, and more efficient way to access the high-quality products and solutions they need to succeed in their operations.”

Relevant says the new ecommerce provides such features as detailed product information, real-time inventory updates, and streamlined ordering processes. Relevant didn’t immediately return a request for information about the site’s technology infrastructure, but according to BuiltWith.com, it runs on the Magento ecommerce platform.

“The ecommerce platform is designed to cater to the unique needs of our industrial customers, featuring advanced search capabilities, intuitive navigation, and personalized account management tools,” Relevant says. “Customers can easily and purchase products from top brands, track their orders, and manage their accounts all in one place.”

Online Shop Relevant Assistant

Relevant distributes products from such brands as Honeywell, Parker and Ingersoll-Rand, plus Relevant-owned brands including 505 Industrial Supply, Rawson & Industrial Controls and J&W Instruments. Among its customer-oriented features is a drop-down “Shop Relevant Assistant” interactive menu, which prompts customers to click for information on such topics as pricing, product lead time, creating an online account and looking up past orders.

In addition to self-service features for buyers, the new site also supports Relevant’s sales team, the company says.

“Our sales team is thrilled about the launch of the new ecommerce platform,” says John Butts, senior vice president of sales. “This platform not only enhances our ability to serve our customers more effectively but also provides us with valuable insights into customer preferences and purchasing behaviors, allowing us to tailor our offerings and services to better meet their needs.”

Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. paul@digitalcommerce360.com.

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Steve Brass, president and CEO, WD-40 Co.

In a recent earnings call, he said the manufacturer and marketer of industrial and residential lubricants, degreasers and cleansers is making progress on its four “must-win” competitive market battles:

• Geographic expansion worldwide.
• Increasing premium product sales.
• Growing its Specialist product line for mechanics and other professionals.
• Accelerating digital commerce.

Although Brass listed ecommerce fourth on the company’s must-win list, he said it was critical to the other three.

“We see [ecommerce] as an accelerator for all our other must-win battles, as it improves brand awareness and online engagement, leading to an improved customer experience and sales across all our trade channels,” Brass said on a recent earnings call, according to a transcript from Seeking Alpha.

He added, “Some of our key objectives within this must-win [ecommerce] battle are to build our brand digitally, grow and develop the ecommerce pure play channel, accelerate growth of the omnichannel, and continue capability-building for our employees.”

Brass went on to note that WD-40’s digital commerce strategy resulted in an 18% company-wide year-over-year ecommerce sales increase through the first nine months of its current fiscal year, “with double-digit growth across the company’s three trade blocks of EIMEA (Europe India Middle East Africa), the Americas, and Asia-Pacific.

The company said total net sales rose 9.4% to $155.05 million for the fiscal third quarter ended May 31; net income increased 5.0% to $19.84 million from $18.90 million.

For the nine months ended May 31, net sales increased 9.5% to $434.57 million from $396.80 million as net income rose 7.0% to $52.86 million from $49.42 million.

Growing sales through online distributors

The company has said its sharpest growth is via ecommerce sales through such business-to-business ecommerce sites as Grainger.com, MSCDirect.com, GlobalIndustrial.com, Fastenal.com and MotionIndustries.com and such online retailers as Amazon, Ace Hardware and Aubuchon Hardware. WD-40 customers can link directly to these ecommerce sites from WD-40.com.

WD-40 is also taking other steps with digital technology to build on its online interactions with customers and drive up operating efficiency.

An online contest WD-40 launched in 2021, Repair Challenge, has invited customers across more than 40 countries — including “doers, makers, fixers and builders” — to show how use WD-40 lubricants and other products to extend the lifespan of their tools, bicycles, cars and other items. Brass said that, so far, the contest has created over 0.5 billion online marketing impressions worldwide.

WD-40 is also “making foundational investments in systems and  data that will allow us to grow faster,” Brass said. For example, he said WD-40 had rolled out Salesforce Inc.’s CRM technology in the U.S. and will be expanding it in the near term, “driving sales efficiencies and effectiveness.”

“Use of data analytics and automated tools, leveraging data is increasing and can be a real enabler for the business,” he said. “The foundational work we are doing now around data governance, centralizing our data architecture and data quality management will allow our people to leverage our data quicker and drive better decision-making.”

Brass added that WD-40 has engaged an investment bank to seek suitors for its U.S. and U.K. home-care and cleaning product brands, which account for about 4% of total sales, and expects to sell them in the company’s 2025 fiscal year.

“Post divestiture, WD-40 Co. will be a more focused company with a higher sales growth and gross margin profile,” he said.

Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. paul@digitalcommerce360.com.

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Trent Guyler, vice president, digital and marketing, The Grasshopper Co.

But in recent years, the company has realized a pick-up in parts sales following the usual end of its peak season in July, says Trent Guyer, vice president, digital and marketing.

One reason, he says, is the mid-July Amazon Prime Day promotional event. Although designed primarily as a big promotional day for retailers and retail consumers, Prime Day also helps to generate spikes in traffic and sales on the Amazon storefronts and product listings of B2B sellers. Amazon scheduled its 10th annual Prime Day this year for July 16 and 17.

Grasshopper is a manufacturer of high-end grass-cutting equipment used to maintain such properties as corporate campuses and the White House lawn. It sells grass-cutting equipment priced at up to $20,000 or more per mowing unit. It also has a network of about 1,000 North American dealers and has customers in about 42 countries. On GrasshopperMower.com, it displays equipment and parts images and details, a request-a-quote feature and a dealer locator. It sells parts through the Amazon.com marketplace and Amazon Business.

Trent notes that Grasshopper customers don’t typically plan their purchasing around promotional events, because if they need a part, they want it immediately.

Manufacturers benefit from Amazon Prime Day

A Grasshopper mower.

Still, he notes that the extra Prime Day traffic has helped Grasshopper experience some of its strongest July sales days for equipment parts.

“The July Prime Day in 2022 actually helped us to have a best day of that month,” Trent says, adding, “Our sales on Day One of Prime Day 2023 uplift us to have one of our three best days in July of that year.”

Trent says Grasshopper runs ads throughout the year to promote its parts sales on Amazon, but nothing specific to Prime Day events. He adds that the reliable rise in traffic is enough to generate increased customer activity through a “halo effect of just being on the platform on Prime Day.”

Dynabrade takes a similar approach regarding Prime Day promotional activity. It relies on an expected boost in traffic rather than specific promotions. Dynabrade is a pneumatic power tools manufacturer.

B2B sellers capitalize on Amazon Business and B2C sales

Ronald Veiders, global brand manager, says the manufacturer tried running a limited Prime Day promotion a couple years ago for one of its popular SKUs and realized only a minor direct benefit. In addition to referring customers on Dynabrade.com to its distribution partners, the manufacturer sells some of its products through a Dynabrade Amazon storefront. Like Grasshopper, Dynabrade has received advice on Amazon marketplace strategy from Enceiba, a digital marketing agency.

Ronald Veiders, global brand manager, Dynabrade

The Prime Day promotion “wasn’t worth it to us,” he says. “We just like being on Amazon, because we know there’s more eyes. And I guarantee we’ll get at least a couple more sales out of it.”

Veiders agrees that Dynabrade benefits at least somewhat from a Prime Day halo effect. But he figures that the boost in activity sparked by Dynabrade’s Amazon presence is tied in large part to the trend of today’s B2B buyers to search online for Dynabrade products and to seek out deals like Amazon’s Prime two-day delivery service.

“Think about the procurement buyers out there nowadays,” he says. “Their first step is Googling, and Amazon is going to come up first or close to it if they’re looking for one of our products. And they’re going to go there to shop, price and compare. And because we’re FBA (Fulfillment by Amazon), it’s Prime and ready to go … for two-day delivery anywhere in the country.”

Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. paul@digitalcommerce360.com.

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In June, “layoffs at big tech companies continued to hurt overall IT hiring,” Janco says, adding, “Large high-tech firms continue to lay off to have better bottom lines. Included in that group of companies that have recently announced new layoffs are Microsoft and Google.”

The 5.9% June IT unemployment rate is up from under 4.0% in March, when it was slightly less than the overall unemployment rate, Janco’s data reports show.

But there’s better news on the B2B ecommerce front, especially for IT professionals with AI skills, Janco says.

Although Janco didn’t break out ecommerce job numbers, it has learned that many employers are striving to cut costs by operating more efficiently — and are looking for IT workers who can help develop AI-powered applications and B2B ecommerce connections to boost revenue and profits.

“From our interviews, data, and analysis, we see that many organizations are looking to improve their bottom lines,” Victor Janulaitis, CEO of Janco, said in an email reply to Digital Commerce 360.

He added that companies realize that IT has some of the highest costs per FTE (full-time equivalents), including contractors and consultants.

“The mean compensation for IT staff now is $103,692 across all organizations,” Janulaitis said.  “If you add contractors and consultants, that number gets closer to $150,000.”

Relying on AI and ecommerce for automation

“Chief information officers are focused on using AI to automate functions like customer support, exception reporting, and routine management of legacy applications,” Janulaitis said. “As that occurs, the number of FTEs is reduced.”

He added that, to develop AI applications, CIOs must hire or retain consultants or contractors who can quickly develop and deploy AI and machine learning solutions.

“Ecommerce and B2B linkages are areas of particular focus,” he said. “Individuals with those skills and experience are in high demand and quickly find jobs.”

Janulaitis added that, unfortunately, IT pros without AI skills are being left out of areas with stronger employment demand.

“Traditional legacy IT pros are another case, and the high unemployment rates hit them directly.”

Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. paul@digitalcommerce360.com.

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For the third quarter ended June 1, MSC reported a decrease in sales of 7.1% to $974.4 million compared with the third quarter of fiscal 2023. Net income was $71.7 million compared with $95.2 million in the prior year.

MSC Industrial ecommerce sales

MSC Industrial didn’t break out ecommerce sales for the most recent quarter. However, in the second quarter, MSC’s ecommerce sales — including sales made through EDI systems, VMI systems, extensible markup language ordering-based systems, vending, hosted systems and other electronic portals — represented 63.2% of net sales.

It’s been a tough year so far for MSC. Struggles can be attributed to two factors, MSC Industrial CEO Erik Gershwind told analysts on an earnings call, according to a transcript from SeekingAlpha.com. First, there were fewer sales from its core group of metal-working customers. Also, the company experienced delays in launching time-critical improvements to its digital commerce platform,

“During our preliminary results release, we described that our biggest disappointment impacting this fiscal year’s results has been re-energizing our core customers due in large part to delays in our website improvements,” he told analysts. “We also experienced some unexpected gross margin pressure in our fiscal third quarter following the full rollout of web price realignment.”

The delayed website enhancements were designed to foster ecommerce with MSC’s core manufacturing customer base. Nevertheless, they resulted in setbacks in marketing efforts and online features for helping those customers find the right products at the right price, the company says.

MSC Industrial website updates

MSC expects to begin realizing more website improvements in its current fiscal fourth quarter. In addition, it expects to complete the projects in the “early stages” of fiscal 2025, which begins this September.

The delay in ecommerce technology upgrades eventually led to an executive departure. MSC’s chief digital officer, John Hill, left the company last month.

Gershwind wants to expedite a return to better sales and profits. To do that, he said he is taking a more direct hand in speeding up ecommerce updates.

“With respect to MSCDirect.com, the recent executive changes have given me a chance to get even closer to our team and to our development efforts,” he told analysts.

MSC expects to have most of all the updates complete by the second quarter of fiscal 2025, the company says.

“We’ve implemented twice-per-week executive reviews; these reviews are bringing more transparency, collaboration, and energy to the program,” he said. “We expect to deliver enhancements to search and product discovery beginning this month. These include improvements to search accuracy and relevance and the introduction of a new presentation of results, which will begin with a narrow slice of our product offering and a rollout on a broader scale in the upcoming quarters.”

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That is because as the market shifts to meeting the wants and needs of an increasing number of digital-first business buyers, more manufacturers are prioritizing replacing or updating older technologies.

Where they are starting over is replacing older legacy systems for backend systems such as enterprise resource planning (ERP), according to a new survey of 150 manufacturers by professional services provider Sikich LLP.

The top benefit organizations hope to achieve when considering a new or expanded ERP investment is using AI functionality, with 60% choosing it. Just over 50% cite a better user experience. Meanwhile, just under 50% identify the top benefit as improved integration across separate applications.

Manufacturers’ digital transformation priorities

The main area of interest in AI for most organizations according to respondents is robotic process automation. More than 60% of participants identify robotic process automation (RPA) as their main area of interest in AI. Machine learning for demand forecasting and predictive analytics were also popular areas of AI interest.

The three top technologies manufacturers are considering investing in over the next 12 months to 18 months are:

1. CRM (customer relationship management)
2. ERP (enterprise resource planning)
3. DMS (demand management system)

“Given that many participants consider lack of visibility across the supply chain a challenge or barrier to meeting customer commitments, it follows that they might view ERP as a helpful tool to overcome this challenge,” the survey says.

Manufacturers’ main reason (49%) for considering an ERP investment is to expand their current ERP footprint, which implies that these companies have already embarked on that journey. Others are considering it because they are transitioning from on-premises to the cloud, cited by 37% of respondents. The findings suggest manufacturers are looking for improved security, convenience, and potential cost savings with their ERP investment, according to Sikich.

More Charts & Data articles

Check back soon for more Charts & Data articles, like our weekly B2B infographics. Here’s last week’s. We add new content regularly. 

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Old ways of how organizations conducted business by paper, phone, fax, e-mail and in-person are outdated and inefficient — and out of touch with today’s commerce reality.

What’s in — and rapidly transforming how organizations of all sizes interact and buy and sell from each other — is an increasing wave of digitally driven omnichannel business buyers who demand the speed, efficiency and convenience of ecommerce and related digital technologies to get the job done.

There is a sea change of digital transformation — and ecommerce — reshaping the business-to-business landscape. And that means sweeping changes in how manufacturers, distributors, retailers and others interact with the customers, suppliers, vendors and others.

EnvisionB2B 2024 in downtown Chicago

That’s where EnvisionB2B 2024 comes in. The third annual EnvisionB2B conference and exhibition from Digital Commerce 360 will take place on Sept. 12 at the Convene conference center in downtown Chicago.

Long known as the “must attend” event for organizations of all sizes looking to launch, scale and successfully grow their digital B2B business, EnvisionB2B and Digital Commerce 360 will once again bring together the industry’s best and brightest thought leaders and practitioners to educate attendees on how to master digital commerce and transformation.

Once again, the B2B editors at Digital Commerce 360 are reaching deep into their extensive list of industry contacts and have put together a detailed agenda and speaker roster that educates attendees on overcoming obstacles, solving problems and achieving long-term success in business, digital commerce and transformation.

This action-packed one-day event features four distinct keynote speakers who will address all aspects of winning the game of B2B digital commerce.

The keynote speakers

• Brad Budde, chief digital officer, PPG Industries, will discuss how this iconic name in U.S. manufacturing and global supplier of paints, coatings and specialty materials paints the big picture for digital commerce transformation.

• Emily Xu, the senior vice president of ecommerce for Republic National Distributing Co., the second-largest alcohol distributor in the U.S., will detail how attendees can create the digital experiences their users demand.

• David Boone, interim CEO of Essendant Inc., a multibillion-dollar national distribution and commerce company with over 20 years of ecommerce and marketplace experience, will discuss how organizations can achieve a better way to (e)commerce excellence.

• Victoria Gutierrez, senior vice president and chief merchandising of Sysco Corp., the largest food-service distribution company with $76.3 billion in annual revenue, informs attendees about becoming a change agent for enterprise digital commerce.

There are numerous B2B industry and internal events that cater to manufacturing, distribution and B2B-oriented retailing companies, many of which purport to tell attendees how to grow online. But only EnvisionB2B and Digital Commerce 360 have the contacts and deep industry understanding and knowledge of the key issues and growth drivers to deliver an EnvisionB2B agenda and speaker roster that educates business organizations of all sizes on achieving excellence in digital commerce and transformation.

Key takeaways from EnvisionB2B 2024

At EnvisionB2B attendees will learn:

• The most effective approaches companies take to succeed at overall digital transformation.
• The latest ecommerce technologies and helpful deployment strategies.
• How to excel at B2B omnichannel commerce.
• Strategies for avoiding mistakes in digital commerce makeovers.

More on EnvisionB2B and how to register is available here.

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Shawn Cope

In Part 2 of our Machine Customers series, we further expand on the emerging $30 trillion business-to-AI (B2A) marketplace. In Part 1, “The coming era of machine customers,” we introduce the concept of a custobot, a “non-human economic actor who obtains goods or services in exchange for payment” (Gartner.) We shared an example of how it could work in practice, and in this second part, we discuss  the technological underpinnings in greater detail.

Kathleen Lewarchick

Since the decision-making around integrated machines is usually complex, we start with a typical custobot journey map. By capturing its flow, people can gain more clarity around their own roles of ownership, responsibility, IP, and security. And the journey really begins in just the first few seconds — dare we say nanoseconds? — within a transactional ecommerce environment.

The First Seconds of Your Machine Bot’s Journey

The first action step in a custobot’s journey is to identify a product need. The machine might do this through a regulated chip or sensor that provides data: examples include usage level, power level, or variations in tolerances. A data point (or need) drives a purchase occasion. You can see how a car wash soap machine (out of suds,) or a battery-powered system (out of juice,) might know when it’s time to reorder. But conditions requiring tight tolerances might be harder to manage, especially in cases where holiday seasonality or weather conditions may come to bear. And yet, predictive “machine customer” buying behavior is much farther ahead than you might imagine. Some vending soft drink machines have built-in thermometers, for example, to assess heat conditions (and pricing).

Once the need is identified, the custobot can use machine-learning and artificial intelligence to conduct a smart search. If the Bill of Materials (BOM) is programmed into a smart machine, the custobot can search on any of the keywords or specifications. If an item was previously searched, reviewed, or considered (through authentication,) that history might also be added to the query.

Once matches are found, the custobot can use pre-determined filters (like budgets, specs, brands) to then evaluate the shortlist of options for consideration. A custobot might know, for example, that there are two acceptable lightbulbs for its smart lamp. Because of the variability of pricing, shipping terms, delivery windows, and taxes, the distributor who gets the buy box or order will likely have the best real-time information and the most positive credentials, such as ratings-and-reviews.

The operative word in all of this is “smart.” Now is a good time to take measure of your ecosystem to determine where you are already ahead, and what obstacles you might have to navigate, in your platforms (ERPs, PIMs, DAMs) and other systems.

What to Do Next – Engaging Your Technical Experts

Data Preparation

On most B2B sites the current level of data is often quite sparse. Custobots will make purchasing decisions based primarily on information systems rather than personal relationships and will place a heavy emphasis on comparing a product’s attributes. This means you must vastly expand on the amount of detail available for a product’s specifications and attributes.

It also means that a strong push should be made towards standardized product attributes — now, while there is still runway left. According to Wes Smith, the President/CEO of the National Association of Electrical Distributors (NAED), through the IDEA’s data synchronization services, “the electrical industry continues to advance its product standardization effort, focusing on a goal of harmonized industry data that is consistent, compatible, and complete.”  IDEA is the Industry Data Exchange Association and is jointly owned by NAED and the National Electrical Manufacturers Association (NEMA).

Why standardize? Because it benefits every participant in the customer journey and will do so for machine customers one day.

Streamlined Products and Pricing with Optional Authentication

Common to B2B websites is the practice of locking catalogues behind an authentication wall. This could shut out guest purchases and present a roadblock to acquiring new customers. However, when a custobot encounters a digital store front as either a guest or authenticated user and it finds limited or no products, a website may rank lower in algorithms, resulting in lost opportunities.

Similarly, in B2B, pricing for a particular product is negotiated per customer or contract, and the price is hidden behind authentication. This pricing method simply won’t work for a custobot that wants to purchase and must at least have an opening price point for comparison. While there is merit in having a better price for volume customers, standard advertised prices are needed at the very least so you don’t risk losing easy sales and lowering your preference rankings in algorithms.

Influencing the Industry Standards

Start Search Engine Optimization (SEO) now to influence the artificial intelligence (AI) models that future machine customers will leverage. If models think specific attributes (e.g., “fit” or “material”) are the most important factors in a buying decision and your products score well there, you will likely win customers based on this foundational groundwork. Large language models are known to have some inherent bias and setting authority for search terms is an important first-mover advantage in the world of machine customers.

In Summary

The coming world of machine customers is already well underway. Setting a place at the table for your new customer requires smart planning and preparation. Since digital moves quickly, start by gathering a cross-departmental, cross-functional team and identifying what people know and don’t know about machine customers. This team can then identify gaps in a custobot customer journey, and then work with subject matter experts to assess the feasibility of solutions.

Pairing Product Management with IT resources will help uncover roadblocks to data flow and create the right single source of truth for product and pricing management. Pairing Marketing and IT resources will help uncover roadblocks to the golden order through API and SEO management. At the very least, by this time next year, everyone in your organization should know what machine customers are and why the company’s digital and IT investments will continue to grow.

Say hello to the new face of customers.

About the authors:

Shawn Cope is the Director of Front-End Engineering for Xngage LLC, a B2B digital commerce services company with more than 60 clients across the industrial trades. Throughout his career he has cultivated a passion for bleeding-edge technologies and crafting user experiences.
Kathleen Leigh Lewarchick is the VP of Marketing for Xngage. She is the former PURELL® Hand Sanitizer Brand Director, has co-created automated replenishment products with Amazon Business, and created telehealth solutions for a company that she later helped sell to CVS Health. 

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