Search
Close this search box.

GUEST COMMENT Blurring lines between B2B and DTC

DeliveryX
Image © fulfilmentcrowd

Traditionally, B2B and DTC have operated very differently, each with distinct demands and difficulties. B2B transactions typically involve larger bulk order volumes at regular, predictable intervals, with reliable and consistent delivery. In contrast, DTC transactions vary in volume and frequency, with consumers expecting flexibility, speed and real-time tracking in delivery. 

Packaging tends to be another key differentiator between the channels. B2B shipments tend to be designed for efficiency and cost-effectiveness, whereas DTC orders are often branded, personalised, and in more eco-friendly packaging materials. 

Lee Thompson, chief executive officer at fulfilmentcrowd

However the lines between the two are blurring, writes Lee Thompson, chief executive officer at fulfilmentcrowd.

B2B buyers increasingly expect the same level of personalisation and customer experience that direct consumer customers receive. Wholesale customers are pushing for the same levels of speed and convenience seen in the DTC space. 

This adds an extra layer of complexity for retail brands, especially as B2B shipments tend to have more requirements, more paperwork, and more pain points. Achieving this balance may seem a daunting prospect, but tackling it head on brings new opportunities.  

 A unified logistics strategy
One approach is to consolidate all B2B and DTC fulfilment operations using one single third-party logistics (3PL) provider. There are several benefits to this approach, including maximising efficiency and minimising overheads. It adds simplicity to previously complex logistics operations. 

A unified logistics strategy streamlines management and oversight, freeing retail brands to focus on core business activities instead of worrying about logistical issues. Managing multiple 3PL partners at once adds to the workload of these brands, whereas working with one partner across all channels helps to mitigate risks, ensuring accountability across the supply chain for a consistent and reliable process. It also minimises costs, consolidating resources whilst optimising processes.   

With one single 3PL provider, retail brands have more freedom to scale and expand when it suits them. Without the burden of infrastructure investments and operational constraints, they can benefit from the ability to adjust capacity, resources, and capabilities. This is especially helpful during peak seasons or new markets, when flexibility is key. 

Crucially, a streamlined approach to managing B2B and DTC can enhance customer satisfaction, too. All customers want the same outcome: accurate orders, delivered safely and on time. With full oversight of the brand and business objectives, an individual 3PL can help deliver exceptional service and customer experiences, no matter the channel. 

Choosing the right partner
Choosing the 3PL partner is key. Any chosen partner should have expertise that extends beyond logistics, including regulatory compliance, technology integration, and industry-specific solutions.

Flexibility and agility are needed to balance B2B and DTC fulfilment operations. For example, implementing order batching and picking strategies for B2B shipments, whilst also supporting individual order processing and packaging for DTC orders. The ability to adapt to the retail brand’s requirements, including working with customisable packaging options provided by the brand to ensure order continuity, the efficient packing of bulk orders, and personalised packaging for individual consumers, is also essential.  

Scalability is another necessary consideration. For example, at fulfilmentcrowd we have a model of utilising redundant warehouse space instead of constructing new buildings. This gives us infinite capacity to meet our customers’ scaling demands.

To consolidate B2B and DTC needs for a seamless service, a 3PL partner must utilise the latest technology. This includes an integrated inventory management system that provides real-time visibility into stock levels, tracks inventory across multiple locations, and supports demand forecasting. 

Getting the balance right between B2B and DTC is crucial to the long term success of any retail brand. Blending fulfilment operations is possible through a unified logistics strategy. 

There are numerous benefits, including streamlined management, risk mitigation, cost efficiencies, scalability, and improved customer satisfaction. 

Lee Thompson, chief executive officer at fulfilmentcrowd


We deliver!
Our editor picks some choice pieces from the analysis flow and sends them to your inbox every Wednesday. Dedicated research report previews will also come direct to you. Subscribe for the emails.

Why not join us on Linkedin and you’ll get the best updates on our research and analysis – UK, Europe and Global – in your feed.

Read More

Register for Newsletter

Group 4 Copy 3Created with Sketch.

Receive 3 newsletters per week

Group 3Created with Sketch.

Gain access to all Top500 research

Group 4Created with Sketch.

Personalise your experience on IR.net