B2B distribution: how to remain competitive through perfect customer experience in the omnichannel era

For many B2B organizations, the need to provide B2C-like experiences is pressing and urgent: the emergence of the likes of Alibaba, Amazon and even Ebay – able to stock, offer and deliver even long-tail items such as spare parts that would once have required sourcing via a specialist distributor – presents as a clear threat to some or all of their business. Similarly, modern e-commerce enables manufacturers to offer – for example – a ‘spares’ service direct to and end-customers far more easily than before, potentially disenfranchising traditional distributors.

Influenced by their everyday experiences in B2C, B2B buyers have learned to expect the same level of convenience and personalization when making a B2B order. This behavior challenges B2B organizations, which have relied traditionally on human sales teams and manual order processing.

Unsurprisingly, meeting such expectations requires many of the same customer-centric initiatives: think self-service portals, or AI-driven chatbots. Such robust customer data platforms (CDPs) tend to provide additional advantages, too. For example, the data they collect may provide opportunities for deeper customer behavior insights, perhaps targeted marketing campaigns and tailored solutions that enhance the B2B buying experience.

But they also increase the variety of sales channels to manage, in turn increasing the risk of channel conflicts; this occurs when different sales channels compete for the same customers. For instance, a direct-to-customer e-commerce platform could find itself undercutting its distributors or sales representatives, leading to dissatisfaction and potential revenue loss.

One way to avoid this situation is to adopt hybrid models, in which online and offline channels are designed and implemented to complement each other rather than compete. For example: exclusive promotions might be offered through certain channels (especially if the objective is to shift more sales towards a particular channel). Using the direct sales channel may come with an offer of value-added services, differentiating such sales from online transactions.

It goes without saying that, when faced with these challenges, clear guidelines and priorities are also essential regarding inventory display and order execution per channel, or per customer segmentation. The implementation of these strategies requires unified and real-time inventory and order orchestration which, luckily, can both be managed by a single OMS (Order Management System).

Where inventory is concerned, inventory levels need to be updated in real-time - i.e., accounting for latest sales (and potential returns) from each channel. Such accuracy is necessary to avoid selling out-of-stock products, and to avoid missing out on potential sales of products that are, or will soon be, in stock. Being at the center of the logistics ecosystem, an OMS is the ideal “single source of truth” for stock levels.

Since the primary role of an OMS is to manage orders, it is designed to execute specific processes for different kinds of orders, based on channel or client segmentation. It also creates a feedback loop with ERPs or any other BI tools, enabling better knowledge of the actual omnichannel order trends.

Ultimately this supports the continuous optimization of any commercial strategies. And the end result is a consistent and personalized customer experience throughout all channels, with no added strain on the distributor’s supply chain.

B2B transactions may involve any combination of large volumes of products, long lead times and intricate logistics networks. As a result, managing inventory across multiple distribution centers, warehouses, and sometimes even stores has long required strong planning and execution capabilities. But, when B2B companies also offer B2C direct-to-customer fulfillment options, it further adds layers of complexity to the supply chain.
In many B2B scenarios, the reliability/predictability/speed of order fulfilment can be by far the most important criteria when placing an order. For example, a delay resulting from a spare part being out of stock might cost a customer dearly if that spare part is essential to production continuity.

This may still be the case when business continuity is not at risk. Consider a distributor of spare parts to automotive repair centers: it is typically more important that a replacement part can be delivered the same afternoon, than whether it could have been provided slightly more cheaply.

Between channel management and order criticality, prioritizing stocks has become a real can of worms for large B2B companies. Without proper real-time visibility and coordination over all locations and a unified view of omnichannel orders, businesses risk a range of sub-optimal outcomes, including stockouts, overstocking, or delays in order fulfillment. None of these are desirable scenarios in an environment where trust is key to customer loyalty.

Such risks may be mitigated by leveraging advanced supply chain analytics, artificial intelligence (AI) and predictive modeling to optimize inventory management. But even that is not enough anymore. The real world is fickle, and supply chains are never exempt from the possibility of disruption. You might be tired of hearing about the importance of building a resilient supply chain, but there’s a reason it’s always a topic!

To build a resilient supply chain, B2B distributors can invest in an Order Management System (OMS). An OMS coordinates orders and inventory to determine how best to fulfill any given order, based on the real-time capacities of the supply chain.

Should any disruption occur that prevents an order from being fulfilled on time or in full, it immediately and automatically finds the best available solution, based on a set of rules and priorities that balance factors such as urgency, cost and CO2 emissions, or the order criticality. Providing real-time visibility on all orders, it also allows full transparency with the customer when it comes to its order status. It also generates valuable data about overall order and inventory management performance, which can be used to enable better planning in future.

With this powerful tool, companies can maximize their OTIF (On Time In Full) rate and improve communication, ultimately reinforcing their position as a trusted supplier for their clients.

Many B2B businesses have been in business for many decades. Consequently, they may depend on what we would now describe as legacy systems, which were never designed to support the seamless omnichannel experience expected in 2025, and do not provide the flexibility required to address the challenges we’ve discussed in this blog.

This probably makes you think about a monolithic, heavy and complex ERP, and you wouldn’t be far from the reality in most cases. Such solutions often lack the interoperability needed to make the most of e-commerce platforms, customer relationship management (CRM) tools or other modern solutions supporting both customer experience and operational efficiency. This makes it a challenge to synchronize data across multiple channels, in turn leading to inconsistencies in pricing, inventory levels, and customer interactions.

It also impedes the collection, processing and analysis of vast amounts of data, especially with the added implementation of e-commerce platforms, marketplaces, direct sales and third-party distributors. Yet siloed data can hinder/prevent effective decision-making, in turn leading to even more fragmented customer experiences and higher operating costs.

Such issues are behind many digital transformation initiatives. Migration to cloud-based solutions with extensive integration capabilities enables vital real-time data sharing and process automation. To drive even better-informed business strategies, another approach is to invest in advanced analytics - or at least to check what kind of insights on your business and operations these supply chain management solutions, like an OMS can provide you.