In the world of fulfilment, there's a distinction to be made between two similar-sounding acronyms: B2B and B2C.

B2C is where you, the business, ship to them, the customers. B2B is where you sell business to business – supplying another company with inventory for them to sell on.

Fulfilment is a challenging part of any business operation, regardless of size or sector. But B2B presents some challenges of its own that simply don't apply when shipping products to customers.

Key differences we're going to explore are order size, shipping methods and EDI compliance – but first, let's look at the big picture.

What do clients want that customers don't?

In asking this question, we're not talking specifically about the type of products that a client is looking for. It could be anything from exercise bikes to avocados. Instead, we're asking what a client expects from the sale itself.

Businesses aren't impulse buyers. They know in advance what they need, when they need it and the profit margin they're aiming for. This means that they typically order in advance.

They also tend to want to establish a good relationship with the supplier – someone reliable who they can entrust with large, regular, repeat orders.

Of course, customer retention is a facet of B2C selling. But individual customers tend to be more fickle and emotive. Sure, you want to foster customer loyalty, but you also want to grab their eye. Sending a business regular supplies is a whole different ball game.

Why is order size so important?

The simple fact is that B2B orders tend to be bigger and more complicated. An office isn't going to stock up on stationery a pencil at a time, after all.

The fact that shipments to businesses are likely to include multiple items in different quantities presents logistical challenges.

This means that you need to know your inventory like the back of your hand – or have software to do that for you. Mistakes can lose you customers – and these are lucrative customers you don't want to disappoint.

The size and complexity of orders doesn't only impinge at the dispatch stage. You also need more space for your stock. This could involve investing in more warehousing space or reaching out to a 3PL for further storage.

Returns

Returns are a bummer at the best of times. But B2C returns are so much easier to sort out than B2B.

And we're sorry to say it but if you do get a return, it's probably your fault. No self-respecting office manager is going to wake up one morning and think, "you know what? We could do with more staples" and then change their mind before the order has arrived.

B2B orders are data-driven. Your clients know what they want.

So the reason for returns is usually a mistake at the supplier's end – the wrong items, say, or the wrong number of items, or goods arriving scuffed or damaged.

This issue relates to the previous point about the need for a solid, trustworthy inventory system – because if you get a large shipment back, you need to inspect each item and then reshelve, replace or remove it from stock. And your inventory needs to be updated promptly and accurately so as not to let down any future clients.

Shipping

B2B shipping isn't as straightforward as B2C. We're not talking about a postie's bag or even a postie's van. We're talking heavy, bulky loads. We're talking pallets. B2B shipping is sweaty work.

Most B2B orders are delivered by freight – either haulage truck or commercial train. If you're delivering abroad, it's likely to be by sea or air (we looked at this issue in another article).

One consideration here is the difficulty of calculating shipping costs. You can't have a one-size-fits-all shipping cost because all of your order sizes will be different.

So you need to figure out the most cost-effective courier for each shipment. This is an area where a 3PL can help – a reliable one will have a warehouse management system that automatically calculates the best option for every delivery.

EDI compliance

Finally, there's paperwork. When isn't there? If you've been selling B2C you'll be well acquainted with your returns policy, cookie policy and so on. B2B throws into the mix something called EDI.

EDI stands for "electronic data interchange". Put simply, EDI refers to the exchange of documentation from your computers to your customer's computers – and vice versa. 

Big retailers want processing to be seamless. So they insist on particular formats for common documentation to speed up the interchange.

Most businesses require similar things – but you have to be careful to format them correctly. This could include barcodes, parcel labels, invoices and booking times.

If you don't comply, you'll lose a client – and worse than that, you may get a slap on the wrist in the form of a chargeback.

So make sure you don't get stung – check you're EDI compliant when shipping in bulk.

How we can help

At Stowsafe Fulfilment, we work with a range of sectors of all shapes and sizes – and we're a dab hand at fulfilling B2B orders.

We spoke about the challenges of storing, picking, packing and dispatching orders that are large and complex. Well, we provide storage solutions that make this something you needn't worry about.

We're experienced in bulk and palletised shipping and returns – and we know how important it is to keep you in the loop about your orders. That's why we've invested in warehouse management software that automatically updates you about inventory levels and order progress – and provides you with rich seams of data you can mine for future decision-making.

Let us take care of these routine tasks so you can focus on growing your business.

Are you looking for B2B order fulfilment? Please don't hesitate to contact us and find out more.