Gain insight on how manufacturers can tackle some of the challenges associated with embedding new technologies into a manufacturing enterprise.
Manufacturers are taking notice of an emerging business model called B2B2C as consumer demands for customization grow. As opposed to B2B (business-to-business) or B2C (business-to-consumer,) a B2B2C model emphasizes the need for manufacturers to cut out the middle man in their sales processes.
B2B2C stands for Business-to-Business-to-Consumer. It focuses on creates a better customer experience and buying journey for the end consumer. In a B2B2C model manufacturers create processes that allow for the consumer to customize products, and for resellers to easily sell products in a way that matches production capabilities. It’s a shift from mass produced goods to mass customization.
Enterprise buyers (B2B) seek out options to provide the highest levels of customization to their consumers (B2C). They look for those solutions among the manufacturers they source product from (B2B2C). In a recent interview, Kris Goldhair of KBMax explains how CPQ plays a part in the B2B2C business model.
He explains that enterprise buyers are looking for:
“…a tech-driven process that allows them to quickly design or customize the required product, see the price upfront and order in a short series of clicks. This landscape for the consumerization of business purchasing—increasingly being referred to as B2B2C—places more pressure on sales teams, who want to accommodate buyer preferences, but aren’t always privy to what that takes on the production side.”
The problem with this, Goldhair explains, is that most sales processes are outdated. They create friction for the salesperson and require a lot of effort and time in order to put together custom quotes and often come with long lead times for manufacturing custom products, resulting in prolonged sales cycles.
CPQ aims to solve this problem by offering a technology solution that allows enterprises to: