The Indian D2C market has witnessed substantial growth in recent years. According to a report by Shiprocket in collaboration with CII, the Indian D2C market is projected to reach a value of US$ 60 billion by the end of 2027. The report also states that the market shall witness a significant 40% CAGR from 2022 to 2027.
D2C businesses rely on logistics for smooth delivery, but managing shipments can be challenging. The brands must consider various parameters to ensure that the products reach their destinations on time. The parameters may include storage, shipping, packaging, pick-ups, and delivery.
The D2C companies must have a robust B2B logistics network to overcome the challenges mentioned above. However, before looking into the importance, impact, and benefits of B2B shipments, let’s understand the definition of the term “B2B Logistics” for D2C companies.
What is B2B Logistics?
Business-to-business or B2B logistics is defined as the transportation of goods or products with the help of a professional shipping service provider. The logistics in such business models are entirely different from those between brands and end customers. B2B logistics usually involves one or more economic transactions between two business entities when transporting goods from one location to another.
Most businesses rely on B2B service providers to ensure a positive customer experience. Third-party suppliers, 3PL distributors, specialized partners for special activities, and even professional customer care teams to cater to unique customer needs are some common examples.
Since the definition of B2B logistics is now clear, let’s understand how it differs from D2C shipping.
B2B Logistics Vs. B2C Logistics
When first entering the difficult business world, business owners and entrepreneurs are bombarded with decisions. One of these critical issues is determining whether their company should sell B2B or B2C.
What precisely does this mean?
A B2B company sells to other businesses, whereas a B2C company sells to consumers. Simply put, a “business-to-business,” or B2B logistics model, sells to other businesses, whereas a “business-to-consumer,” or B2C logistics model sells directly to customers.
|In B2B, businesses or companies transact with each other||Transactions between business entities and consumers are B2C transactions|
|B2B shipments include a large number of retail-direct shipments||The B2C purchase consists of a single purchase in smaller volumes|
|Relationships between businesses are the focus of B2B||In B2C; the product is the primary focus|
|It takes a long time for a B2B transaction to be completed||When it comes to B2C, the buying cycle is short|
Importance Of B2B Logistics
Smooth B2B logistics is indirectly connected to providing the best shipping experience to the end consumers as they will receive their ordered product on time. The smoother the B2B logistics will be, the smoother the end consumer’s experience for B2C or D2C.
Let’s look at the importance of b2b logistics:
1. Enhances the Customer Experience
Clients emphasize a few key factors when it comes to transporting their products from one location to another:
- Cost of pickup and deliveries
- Flexible Pickups
- Precise manifestation
- Quality of Packaging
When it comes to providing enhanced customer experience, the B2B logistics service providers must ensure that they meet the client’s expectations. Considering the rise in online purchases, especially in the post-pandemic era, the importance of a perfect B2B logistics service has multiplied ten times more.
In business, the adage “Time is money” is highly accurate. Time is the key milestone and crucial logistical variable of the shipment process. Therefore, selecting a quick and effective method of cargo transportation is very important and extremely cost-effective.
3. Provides You With a Competitive Advantage
Similar to supply chain management, a robust logistics network can transform a D2C brand into a lean delivery and distribution machine. The tech-enabled B2B logistics services give the brands fresh insights into order status, shipping, and order tracking. As a result of visualized logistics data, brands can improve first-attempt deliveries, prevent orders from getting lost, and most importantly, enhance customer satisfaction, thus providing a distinctive competitive edge to the d2C brands.
4. Lowers Overhead Expenses
Smart B2B logistics can save many transportations, storage, and other freight costs. Organizations may customize strategic inbound and outgoing shipping schedules, methods, and routes, through inventory management and demand forecasting. As a result, businesses can save greater amounts which can further be used in developing their other products or services.
It takes careful planning and execution to manage B2B logistics. However, businesses with the right tools and resources can minimize their time co-ordinating, improve customer experiences, and more.
To help manage the company, a SaaS-based B2B logistic services provider such as Pickrr that helps businesses to streamline their forward, reverse, and other logistics procedures is the best option for D2C brands.
The company offers options for appointment-based delivery, same-day delivery, excellent customer service, and delivery tracking capabilities to help customers keep tracking their shipments. To learn more about how Pickrr may assist, visit the website for more details.