Whether or not you work in a warehouse, chances are you’ve heard a lot of excited chatter around business-to-consumer fulfillment in the eCommerce industry. It’s hard being kept under wraps that the demand for shipping and fulfillment in the online retail world has grown significantly during the coronavirus pandemic, on a global scale. But you may not have heard about business-to-business, or B2B fulfillment in quite the same way. You probably should have.
You see, a number of B2B warehouses still supply bricks and mortar retail companies. They store and ship products for them domestically and internationally, with some even fulfilling various raw materials required to finish companies’ end products. As such, they have worked tirelessly during the pandemic, despite having to deal with a range of issues including changes in supply and demand, backlogs in the supply change, and other pandemic-related problems, just like their B2C peers.
Moving Beyond Fulfillment
As a result, but also because that was the way things were going in the 21st Century anyway, many B2B warehouses are mow diversifying beyond B2B fulfillment. Changing levels of demand due to the popularity of eCommerce has made this essential with many BSB warehouses struggling to cope with the pressures of stagnant inventory and uncertainty in their businesses, but also due to the fact that, when things did open up again, and demand went through the roof, it was pedal to the metal with a huge resurgence in demand and lots of empty floor space, which meant they weren’t making as much money as they could.
So, it is fair to say that the changing times and the COVID-19 pandemic have made change necessary. Many B2B warehouses, especially those who are tied to one industry or who have only one big client providing them with most of their profits are having to adjust to the new normal and avoid putting all of their eggs into one basket, so to speak.
It’s not all bad news though because in every crisis there are opportunities and diversifying beyond B2B fulfillment could be very fruitful for companies who are willing to embrace change and get into the various eCommerce markers around the globe.
If you run a warehouse that is reliant on a specific client or sector of business, you might want to think about diversifying your portfolio to include a greater number of clients and/or sectors.
In fact, the 2020 Third-Party Logistics Warehouse Benchmark Report found that 3PL warehouses that offered omni-channel fulfillment were 271 percent more likely to see growth than those who ran a single-channel business.
The main benefit of diversifying beyond B2B fulfillment to represent a wider range of sectors is the fact that it offers your company more security, while costing you very little. When you have various clients spread over numerous sectors, if one is experiencing issues, it will not take you down with it – you will still have several more income streams to work with.
Contact Global Warehouse Solutions
Want to know more about B2B fulfillment? Get in touch with Contact Global Warehouse Solutions today.