Statistics show that B2B marketplaces are playing catch up with the B2C sphere. NovaFori’s interviews with more than 30 industry leaders surfaced a range of business challenges; from pricing, to market culture through to sales methodology. digital transformation is offering great opportunities, both internal and external. B2B consumers now expect an Amazon level of service. How far are we from delivering it? And what are the challenges standing in the way?
Digital technology is revolutionising B2B sales and marketing, and early digital adopters are significantly outpacing their competitors. Research by McKinsey & Co.found that B2B companies that have invested in and mastered a “targeted set of digital capabilities and approaches” are generating 8 percent more shareholder returns and a revenue compound annual growth rate that is five times greater than other companies in their field.
Marketplaces existed since people first gathered physically to trade items, and this remained constant even as they developed in complexity over centuries. However, that limitation is gone. Technology have freed marketplaces from their geographic restrictions, and they are increasingly moving online, and optimisation of online marketplaces is something every business should think about. In addition to the right online platform, you must have an effective strategy, robust technology and patience.
There is not a commodities business in the world that doesn’t worry about whether it’s getting the optimal price for its products. The high-volume businesses who deal in homogenous commodities with stable supply routes can rely on traditional broker-led trading to arrive at the best pricing. But what about the other half of the commodities sector where products trade in smaller, more volatile, differentiated segments and for whom an irregular supply chain is a fact of life?
The use of auction technology can increase liquidity in OTC derivatives, which in turn, may lead to greater transparency, liquidity, and the ability to clear the trade through a clearing service. A derivatives exchange is a central exchange where people can trade “standardised” agreements of a specific quantity and quality of a commodity or financial instrument at an agreed future date, backed by a Central Clearing Counterparty (CCP).
