B2B e-commerce technology and services https://www.digitalcommerce360.com/topic/b2b-technology/ Your source for ecommerce news, analysis and research Thu, 01 Aug 2024 19:17:08 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.5 https://www.digitalcommerce360.com/wp-content/uploads/2022/10/cropped-2022-DC360-favicon-d-32x32.png B2B e-commerce technology and services https://www.digitalcommerce360.com/topic/b2b-technology/ 32 32 Alibaba rolls out an AI-powered B2B sourcing tool https://www.digitalcommerce360.com/2024/08/01/alibaba-ai-powered-b2b-sourcing-tool/ Thu, 01 Aug 2024 19:17:08 +0000 https://www.digitalcommerce360.com/?p=1326374 Alibaba introduced its latest use of artificial intelligence (AI) to push B2B marketplace services — this time in the form of a new tool for sourcing. About 30,000 businesses on the marketplace use Alibaba’s AI tools to increase product exposure in targeted markets. Sellers on the marketplace say the practice helps them grow, even with […]

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Alibaba introduced its latest use of artificial intelligence (AI) to push B2B marketplace services — this time in the form of a new tool for sourcing.

About 30,000 businesses on the marketplace use Alibaba’s AI tools to increase product exposure in targeted markets. Sellers on the marketplace say the practice helps them grow, even with limited internal staff.

Now Alibaba is rolling out its latest tool: an AI-powered conversational sourcing engine.

Alibaba owns the world’s two largest online marketplaces by gross merchandise value (GMV), Taobao and Tmall. Taobao ranks No. 1 in the Global Online Marketplaces Database, Digital Commerce 360’s ranking of the largest such marketplaces by GMV. Tmall ranks No. 2. Both operate in China.

How Alibaba’s new AI tool for B2B works

Unlike traditional search engines, which rely heavily on simple ranking and indexing, Alibaba’s AI sourcing engine will focus on understanding natural language and transforming it into professional sourcing requests.

It can even predict sourcing needs and provide suggestions. Another feature also allows complex queries or full documents as inputs. The system will distinguish and respond to them in natural language, according to Alibaba.

“Traditional search engines evaluate web page importance through interlinking, credibility and ad spend,” said Alibaba.com president Kuo Zhang. “In this AI era, the B2B sourcing engine offers an intuitive and organic way to query, as well as rapidly and accurately match business buyers and business sellers based on their proven track record.”

The sourcing engine’s features

Alibaba’s sourcing engine includes two significant features:

  1. Reconstruction of information.
  2. A digital assistant.

First, in reconstructing information, Alibaba looked at how ecommerce has traditionally used product listings with titles, descriptions, keywords and pictures. Business buyers often need to compare multiple suppliers. With that in mind, the sourcing engine will reorganize such information to enable direct, custom-made and side-by-side comparisons, Alibaba said.

Next, the digital assistant will leverage 25 years of expertise in digitalizing various trade aspects — products, payments, logistics, customs and currency exchanges. Alibaba believes its AI technology in this context can now mimic the experience of having a sourcing professional at a buyer’s side.

“This technology can level the playing field and significantly reduce costs, enabling small to medium enterprises (SMEs) to become integral players in the global supply chain,” Alibaba said.

Alibaba’s larger push for B2B AI tools

In November, Alibaba International Digital Commerce Group introduced its generative artificial intelligence (AI) toolkit, branded “Aidge,” which has been adopted by approximately 500,000 merchants, with daily API usage reaching 50 million calls.

Features include a virtual try-on tool for apparel and a 24/7 AI customer service capability.

Since last April, Alibaba International has assembled an AI business team of 100 analysts and developers.

In May, the marketplace company surveyed 500 micro-, small and medium-sized enterprise (MSME) companies that do business on Alibaba.com and range in size from one to 250 employees.

Among the survey’s findings:

  • 25% to 35% of respondents use AI daily.
  • Using AI tools led to an average 37% increase in product exposure to promote growth in commerce.
  • Companies using AI tools accepted 70% of product optimization suggestions.

The survey also found that companies from developing countries accounted for much of the use of the marketplace’s AI tools.

“Among the top 20 countries making the most frequent use of Alibaba.com’s AI tools, approximately 50% are from developing countries,” Alibaba assessed.

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The new digital supply chain stars: automated guided vehicles https://www.digitalcommerce360.com/2024/07/26/the-new-digital-supply-chain-stars-automated-guided-vehicles/ Fri, 26 Jul 2024 14:00:28 +0000 https://www.digitalcommerce360.com/?p=1326053 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 […]

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EmilyNewton

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.

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.

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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At WD-40 Co., ecommerce underpins all “must-win” battles https://www.digitalcommerce360.com/2024/07/24/at-wd-40-co-ecommerce-underpins-all-must-win-battles/ Wed, 24 Jul 2024 20:21:10 +0000 https://www.digitalcommerce360.com/?p=1325974 WD-40 Co. is reporting positive developments across its global sales operations, and ecommerce is crucial them all, president and CEO Steve Brass says. 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. […]

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WD-40 Co. is reporting positive developments across its global sales operations, and ecommerce is crucial them all, president and CEO Steve Brass says.

We see ecommerce as an accelerator for all our other must-win battles
Steve Brass, president and CEO
WD-40 Co.
SteveBrass-headshot--WD-40-JPEG

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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A veteran ecommerce executive joins Custom Ink as CEO https://www.digitalcommerce360.com/2024/07/22/a-veteran-ecommerce-executive-joins-custom-ink-as-ceo/ Mon, 22 Jul 2024 20:50:51 +0000 https://www.digitalcommerce360.com/?p=1325880 Custom Ink — an online source of apparel and “other swag” that businesses and community organizations can  customize with printed designs — has refocused on its digital roots in the years following the pandemic. Last December, the company launched Swag.Space as a “white-label” platform that lets promotional product distributors develop online product catalogs and manage […]

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Custom Ink — an online source of apparel and “other swag” that businesses and community organizations can  customize with printed designs — has refocused on its digital roots in the years following the pandemic.

Last December, the company launched Swag.Space as a “white-label” platform that lets promotional product distributors develop online product catalogs and manage production, inventory, orders, distribution and storage. Swag.Space runs on technology and infrastructure developed by Swag.com, the custom-product ecommerce platform Custom Ink acquired in 2021. Through its integration with the Shopify ecommerce platform, Swag.Space lets client distributors offer their customers “the ability to launch company stores.”

DavidDoctorow_CustomInk

David Doctorow, recently named CEO of Custom Ink.

Now, the customized swag company wants to take its digital strategy to the next level with a new CEO steeped in ecommerce-growth experience.

The company has named David Doctorow, who most recently was the CEO of real estate company Realtor.com, as the top executive to succeed co-founder and CEO Marc Katz, who will remain as chairman of the board. Doctorow will take over the reins and join the board next month.

MarcKatz-CustomInk

Marc Kattz, chairman, Custom Ink

“Leading Custom Ink and working with such great people has been an amazing 25-year experience,” Katz said in a statement announcing Doctorow’s appointment. “We’ve undertaken major changes since the pandemic to refocus on our digital roots, and now it’s time for a new CEO to lead us to new heights. David is a proven leader with an impressive track record building digital businesses.”

At Realtor.com, Doctorow was CEO between 2020 and 2023 and “led the business to record revenue, profit and customer satisfaction,” Custom Ink says in its statement. In addition, it notes that, prior to Realtor, Doctorow led growth in eBay’s customer acquisition and retention efforts as head of global growth and, as chief marketing and strategy officer of online travel services company Expedia, “helped double” sales and profits.

At Custom Ink, Doctorow says he sees “tremendous potential for further growth” as the personalized products company continues to develop its digital offerings.

Custom Ink is supported financially by Great Hill Partners, its primary growth equity backer.

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

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Why ecommerce is good for business and bad for the environment https://www.digitalcommerce360.com/2024/07/19/why-ecommerce-good-for-business-bad-for-environment/ Fri, 19 Jul 2024 17:33:46 +0000 https://www.digitalcommerce360.com/?p=1325788 Whether it’s B2C or B2B, the national and global ecommerce industry is booming. But that boom in how consumers and businesses go online to purchase goods and services — at work and home — is taking a huge strain on the global resources and the environment, says a new report from the United Nations Conference […]

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Whether it’s B2C or B2B, the national and global ecommerce industry is booming.

But that boom in how consumers and businesses go online to purchase goods and services — at work and home — is taking a huge strain on the global resources and the environment, says a new report from the United Nations Conference on Trade and Development.

The digital economy is booming. Annual smartphone shipments have more than doubled since 2010, hitting 1.2 billion in 2023. And Internet of Things (IoT) devices are projected to surge 2.5 times to 39 billion by 2029, from 2023. New data from 43 countries shows business ecommerce sales grew 60% from 2016 to 2022, to reach $27 trillion. The data represents about three-quarters of global gross domestic product (GDP).

This growth is taking an increasingly heavy toll on the environment, according to the UN report.

Ecommerce role in the environment

The digital economy is resource-intensive. A four-pound computer requires 1.7 pounds of raw materials.

While the production phase is the most impactful — generating some 80% of smartphone greenhouse gas (GHG) emissions — environmental harm occurs throughout the lifecycle of devices and information and communications technology (ICT) infrastructure, including through ecommerce, according to the report.

Digital waste is growing faster than collection rates. Waste from screens and small IT equipment rose 30% between 2010 and 2022, reaching 10.5 million tons. Improper disposal leads to pollution and other health and environmental hazards.

Increasing demand for data transmission, processing, and storage for recent technologies like blockchain, artificial intelligence (AI), fifth-generation (5G) mobile networks and IoT is boosting emissions. For example, the ICT sector emitted an estimated 0.69 to 1.6 gigatons of CO2 equivalents in 2020, corresponding to 1.5% to 3.2% of global GHG emissions.

As digital devices become more complex, they require more mineral resources. Phones used 10 elements from the periodic table in 1960, 27 in 1990 and 63 in 2021.

As a result, demand for critical minerals critical for both digital and low-carbon technologies is soaring. For instance, demand for cobalt, graphite and lithium is expected to increase by 500% by 2050, according to the World Bank.

A pressing concern is digitalization’s increasing energy and water needs. In 2022, Google’s data centers and offices consumed more than 21 million cubic meters of water. Newer technologies, such as generative AI, also require more potable water for cooling servers.

In the U.S., one-fifth of data center servers’ direct water footprint comes from watersheds that are moderately to highly water-stressed, according to the report.

“The digital economy currently generates excessive waste, reinforced by programmed obsolescence – the built-in reduction of a product’s lifespan due to technical, functional or psychological reasons – in modes of production,” the report says. “A circular economy minimizes waste and maximizes resource use through reusing, refurbishing, recycling, and extending product lifespans.”

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B2B distributor Essendant reinvents itself through Connected Commerce, digital transformation https://www.digitalcommerce360.com/2024/07/15/b2b-distributor-essendant-connected-commerce/ Mon, 15 Jul 2024 21:05:03 +0000 https://www.digitalcommerce360.com/?p=1325531 By its reckoning, one of the largest distributors in markets serving janitorial, sanitation, and related verticals is hardly a household name. But the new interim CEO of Essendant Inc. is out to change that perception. How Dave Boone — who was named interim CEO in May to replace Harry Dochelli, who retired — intends to […]

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By its reckoning, one of the largest distributors in markets serving janitorial, sanitation, and related verticals is hardly a household name. But the new interim CEO of Essendant Inc. is out to change that perception.

How Dave Boone — who was named interim CEO in May to replace Harry Dochelli, who retired — intends to do that is by transforming a traditional distribution company into a more streamlined organization focused on digital commerce and transformation.

Essendant is a national wholesale distributor with consolidated annual net sales of more than $5 billion. The company’s new corporate emphasis is on a new program Essendant calls Connected Commerce.

 

Essendant emphasizes its Connected Commerce services

Connected Commerce brings together Essendant’s capabilities to serve B2B sellers more effectively. It also seeks to efficiently drive visibility through a comprehensive platform of digital services that include:

  • A connection to most major marketplaces, B2B platforms, and web stores. It also connects to nine of the top 10 national retailers.
  • Deep ecommerce service and channel expertise for more than 1,300 major brands and 560 suppliers. This comes through 20 online storefronts and marketplaces.
  • Fulfillment expertise and fast delivery. This includes next-day delivery to 98% of the U.S. with a national network of more than 20 fulfillment centers.
  • A big focus will be on serving companies across the spectrum in business-to-business (B2B), business-to-consumer (B2C) and business-to-business-to-consumer (B2B2C).

“50% of the shipments we make from our distribution centers go direct to the end user and are an ecommerce shipment,” Boone tells Digital Commerce 360. “This (Connected Commerce) is building what this company has been doing for a long time. What we have realized in the past six months has been that we have a set of assets that, put together properly, are a very compelling proposition for brands.”

Essendant is based in Deerfield, Illinois. Today, it distributes 2,000 brands and 80,000 SKUs across all major channels.

Key features of Connected Commerce

Through its new Connected Commerce program, Essendant will offer customers and users a defined set of tools and digital features. These tools enable them to:

  • See optimized product listings and content for each channel.
  • Have real-time inventory access.
  • Implement performance tracking and trended guidance.
  • Conduct pricing analysis and view competitive insights.
  • Digitally monitor the sales process across marketplaces and channels.
  • Use compliance expertise to sell directly to major retailers.
  • Use a flexible network of coast-to-coast fulfillment centers.

“We have the fulfillment network established and have the capacity to grow it in the marketplace,” Boone says. “The second thing I think we have that is underappreciated is that this business is connected to every significant platform and company in the U.S. — that’s a big opportunity.”

Going into the next two decades with an organization with an established infrastructure and strategy focused on connected commerce will help Essendant conduct business in new and better ways, he says.

Boone, Essendant to keynote at EnvisionB2B 2024

“As we look at the next 10-20 years for this company — the ongoing growth of ecommerce B2B and B2C — we just felt that if we put these assets together in a more in a more comprehensive solution that it would be powerful.”

Boone and Essendant will be talking more about Essendant’s ongoing digital transformation at EnvisionB2B 2024 on Sept. 12 in Chicago.

His afternoon keynote fireside chat — A Better Way To (E)Commerce Excellence — will focus on how brand office supplies and industrial products manufacturers and distributors collaborate for growth through digital channels.

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Supply chain managers are now big users of generative AI https://www.digitalcommerce360.com/2024/07/12/supply-chain-managers-generative-ai-epicor-survey/ Fri, 12 Jul 2024 14:52:44 +0000 https://www.digitalcommerce360.com/?p=1325360 Supply chains aren’t quite ground zero for how B2B organizations deploy generative artificial intelligence (AI). But supply chain management is a wide area for lots of activity — including pilot initiatives and full-scale rollouts, says a new survey of 1,700 supply chain management executives from Epicor, a developer of enterprise resource planning (ERP) applications. Supply […]

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Supply chains aren’t quite ground zero for how B2B organizations deploy generative artificial intelligence (AI).

But supply chain management is a wide area for lots of activity — including pilot initiatives and full-scale rollouts, says a new survey of 1,700 supply chain management executives from Epicor, a developer of enterprise resource planning (ERP) applications.

Supply chain managers benefit from generative AI

The survey found that a higher percentage of businesses (63%) that identify as high-growth have already integrated generative AI into their respective supply chain operations to manage cost and operational challenges. It defines high-growth businesses as those with revenue growth of 20% or more over the past three years.

Supply chain managers are integrating generative AI into digital supply chain operations across various function. According to the survey, those include:

  • Product descriptions
  • Customer service chatbots
  • Natural language querying
  • Reporting
  • In-application assistance

At this point, 72% of organizations are using generative AI in customer service chatbots, survey data shows.

“This widespread implementation is attributed to the technology’s ability to streamline customer interactions across various sectors,” Epicor says.

Meanwhile, 67% of organizations currently employ generative AI for crafting product descriptions, leveraging the technology’s capacity to analyze customer sentiment and forecast market demand.

“This enables a more informed approach to product design and feature development,” according to the survey.

Additionally, businesses are also implementing machine learning most frequently in inventory optimization (45%) and demand forecasting (40%).

A big priority for the impact of automation technologies lies in increased efficiency and productivity (32%). Priorities also lie in cost savings (26%) and improved supply chain automation (23%).

“This reflects a strong belief in the potential of these technologies to drive significant improvements in supply chain management,” Epicor says.

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Digital commerce bolsters omnichannel sales for Johnson Controls https://www.digitalcommerce360.com/2024/07/11/digital-commerce-bolsters-omnichannel-sales-for-johnson-controls/ Thu, 11 Jul 2024 13:49:29 +0000 https://www.digitalcommerce360.com/?p=1325372 At Johnson Controls, B2B ecommerce is bringing a blast of fresh air to the building control systems manufacturer’s sales of residential HVAC systems to installation contractors. The manufacturer is expanding its network of company-owned physical stores to engage customers of its York HVAC systems in local U.S. markets underserved by third-party distributors, and each new […]

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At Johnson Controls, B2B ecommerce is bringing a blast of fresh air to the building control systems manufacturer’s sales of residential HVAC systems to installation contractors. The manufacturer is expanding its network of company-owned physical stores to engage customers of its York HVAC systems in local U.S. markets underserved by third-party distributors, and each new […]

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Parts Town launches visual search for HVAC parts https://www.digitalcommerce360.com/2024/07/10/parts-town-launches-visual-search-for-hvac-parts/ Wed, 10 Jul 2024 18:25:38 +0000 https://www.digitalcommerce360.com/?p=1325327 In the heat of summer, HVAC contractors need all the help they can get to keep cool air flowing in businesses and homes. HVAC equipment distributor Parts Town launched this week a visual search feature on its mobile app designed to quicken how contractors identify and purchase the exact parts required for a particular unit […]

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In the heat of summer, HVAC contractors need all the help they can get to keep cool air flowing in businesses and homes.

HVAC equipment distributor Parts Town launched this week a visual search feature on its mobile app designed to quicken how contractors identify and purchase the exact parts required for a particular unit of HVAC equipment.

Our mission at Parts Town is to equip our customers with the tools they need to work efficiently and effectively.
Jeff Audette, senior vice president, HVAC
Parts Town
JeffAudette_PartsTown

Jeff Audette, senior vice president, HVAC, Parts Town

Rather than looking up an HVAC unit’s details and calling them in to a parts center, contractors can now use the new HVAC Data Plate Scanner in the Parts Town app to scan the manufacturer’s data plate attached to the HVAC unit they’re servicing.

The scanner identifies criteria such as the unit’s model and serial numbers, circuit ampacity, and circuit break size. The app’s scanner supports the scanning process by using optical character recognition (OCR) technology.

The app then directs users to a product landing page on PartsTown.com that displays information on the OEM (original equipment manufacturer) parts and service manuals available for the identified unit. Contractors have the option to place an online order through the app or contact a Parts Town rep.

“Technicians are the backbone of our industry,” says Jeff Audette, senior vice president of HVAC at Parts Town. “Our mission at Parts Town is to equip our customers with the tools they need to work efficiently and effectively.”

Parts Town is still beta-testing the data plate scanner to gather customer feedback for making ongoing improvements, Parts Town says. The scanner’s initial launch supports products from the Trane and YORK brands, but Parts Town, which distributes HVAC parts from dozens of companies, says it will expand it to include “a wider range of manufacturers in the near future.”

PaulHancox_PartsTown

Paul Hancox, senior vice president, ecommerce, Parts Town

Parts Town Unlimited also distributes parts for food-service equipment parts and residential appliances. The privately held company reported a 25% increase in 2023 revenue to $2.3 billion, crediting continued growth in B2B ecommerce from new features. It has said ecommerce accounts for about 70% of its total sales.

Paul Hancox, Parts Town’s senior vice president of ecommerce, will speak on B2B ecommerce growth strategies at the EnvisionB2B Forum in Chicago on Sept. 12.

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

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IT pros excel with B2B commerce and AI skills https://www.digitalcommerce360.com/2024/07/09/it-pros-excel-with-b2b-commerce-and-ai-skills/ Tue, 09 Jul 2024 20:39:27 +0000 https://www.digitalcommerce360.com/?p=1325286 The unemployment rate for IT pros rose to 5.9% in June, about 44% higher than the 4.1% U.S. national unemployment rate, according to a report from Janco Associates Inc., a consulting firm concerned with information technology trends. In June, “layoffs at big tech companies continued to hurt overall IT hiring,” Janco says, adding, “Large high-tech […]

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The unemployment rate for IT pros rose to 5.9% in June, about 44% higher than the 4.1% U.S. national unemployment rate, according to a report from Janco Associates Inc., a consulting firm concerned with information technology trends.

Ecommerce and B2B linkages are areas of particular focus.
Victor Janulaitis, CEO
Janco Associates Inc.

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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Sign up for a complimentary subscription to Digital Commerce 360 B2B News, published 4x/week. It covers technology and business trends in the growing B2B ecommerce industry. Contact Mark Brohan, senior vice president of B2B and Market Research, at mark@digitalcommerce360.com. Follow him on Twitter @markbrohan. Follow us on LinkedInTwitterFacebook and YouTube.

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