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PREPARE FOR THE B2B E-COMMERCE REVOLUTION:

FEATURING FINDINGS FROM FORRESTER RESEARCH’S “STATE OF B2B E-COMMERCE” GLOBAL STUDY & LESSONS LEARNED FROM BDI

December 6, 2013

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AGENDA

• Introduction – 5 minutes • Andy Hoar – 20 minutes • Steve Grzymkowski, BDI – 10 minutes • Panel dialog (Tom Gale moderator) - 10 minutes • Audience Q&A via Chat – 15 minutes

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Speakers

Tom Gale - Moderating Modern Distribution Management

Andy Hoar

Forrester’s Research

Steve Grzymkowski

BDI

Online and Mobile Are Transforming

B2B Commerce

Andy Hoar Senior Analyst, Forrester Research

December 6, 2013

Seminal Research on B2B eCommerce

© 2013 Forrester Research, Inc. Reproduction Prohibited

Key Findings

© 2013 Forrester Research, Inc. Reproduction Prohibited

Key Findings

›Self-service tools are fundamentally changing the way B2B customers interact with companies.

© 2013 Forrester Research, Inc. Reproduction Prohibited

Key Findings

›Self-service tools are fundamentally changing the way B2B customers interact with companies.

›Selling online and on mobile represent a significant new opportunity for B2B companies.

© 2013 Forrester Research, Inc. Reproduction Prohibited

Key Findings

›Self-service tools are fundamentally changing the way B2B customers interact with companies.

›Selling online and on mobile represent a significant new opportunity for B2B companies.

›B2B companies that wait too long to implement eCommerce assume a big risk.

New B2B Customer Behavior

62% of B2Bs: eCommerce has fundamentally changed the way customers interact with us

Base: 353 online B2B companies around the world

B2B Customers Want Self-Service Tools

Base: 353 online B2B companies around the world

B2B Customers Want Self-Service Tools

Base: 353 online B2B companies around the world

Research Online

62%

Global

B2B Customers Want Self-Service Tools

Base: 353 online B2B companies around the world

Research Online

62%

Global

Support Online

58%

Global

B2B Customers Want Self-Service Tools

Base: 353 online B2B companies around the world

Research Online Buy On Phone

51% 62%

Global Global

Support Online

58%

Global

62%

52%

54%

52%

Research

Buy

Research

Buy

Majority Of B2B Customers Use Mobile Devices To Research And Buy Products Online

Base: 353 online B2B companies around the world

2011 2016

Mobile 4% 26%

Desktop 96% 74%

0%

20%

40%

60%

80%

100%

120%

% o

f T

ota

l

Business Internet Traffic

Mobile Will Represent 26% by 2016

2011

Source: Cisco VNI May 2012

2016

Significant New Opportunity

B2B Over Twice the Size of B2C

Source: Forrester Research US Online Retail Forecast, 2011 To 2016, Key Trends in B2B eCommerce for 2013

$252bn

$559bn

Twice As Many Companies Believe B2B Online Will Grow Faster Than B2B Offline

“What do you expect your fastest growing sales channel to be in the next year?”

16%

6% Next 12 months

Direct to business partners online Direct to business partners offline

Base: 353 online B2B companies around the world

Online-Only Customers Are More Active Than Offline-Only Customers

Base: 353 online B2B companies around the world

Online-Only Customers Are More Active Than Offline-Only Customers

Base: 353 online B2B companies around the world

+1

Add items to order

59%

Online-Only Customers Are More Active Than Offline-Only Customers

Base: 353 online B2B companies around the world

+1

Add items to order Order at a

higher frequency

59% 56%

Online-Only Customers Have Higher AOVs Than Offline-Only Customers

Base: 353 online B2B companies around the world (147 B2B companies with greater than 25% of sales online,

156 B2B companies that have been selling online for five years or more)

Online-Only Customers Have Higher AOVs Than Offline-Only Customers

Base: 353 online B2B companies around the world (147 B2B companies with greater than 25% of sales online,

156 B2B companies that have been selling online for five years or more)

37%

Global

Online-Only Customers Have Higher AOVs Than Offline-Only Customers

Base: 353 online B2B companies around the world (147 B2B companies with greater than 25% of sales online,

156 B2B companies that have been selling online for five years or more)

37%

Global

52%

More than ¼ sales online

Can Reach Customers More Effectively With Cross-Sell And Up-sell Offers Online vs. Offline

Base: 353 online B2B companies around the world

Can Reach Customers More Effectively With Cross-Sell And Up-sell Offers Online vs. Offline

Base: 353 online B2B companies around the world

54%

Global

Can Reach Customers More Effectively With Cross-Sell And Up-sell Offers Online vs. Offline

Base: 353 online B2B companies around the world

47%

EMEA

54%

Global

B2B Companies Can More Effectively Build Loyalty Online Than Offline

Base: 353 online B2B companies around the world, 102 B2B companies in EMEA.

B2B Companies Can More Effectively Build Loyalty Online Than Offline

44%

Global

Base: 353 online B2B companies around the world, 102 B2B companies in EMEA.

B2B Companies Can More Effectively Build Loyalty Online Than Offline

65%

More than ¼ sales online

44%

Global

Base: 353 online B2B companies around the world, 102 B2B companies in EMEA.

© 2013 Forrester Research, Inc. Reproduction Prohibited

Opportunities

© 2013 Forrester Research, Inc. Reproduction Prohibited

Opportunities

› Revenue upside

© 2013 Forrester Research, Inc. Reproduction Prohibited

Opportunities

› Revenue upside

› Cost savings (including profitable only online)

© 2013 Forrester Research, Inc. Reproduction Prohibited

Opportunities

› Revenue upside

› Cost savings (including profitable only online)

› Loyalty building

© 2013 Forrester Research, Inc. Reproduction Prohibited

Opportunities

› Revenue upside

› Cost savings (including profitable only online)

› Loyalty building

› International growth

© 2013 Forrester Research, Inc. Reproduction Prohibited

Opportunities

› Revenue upside

› Cost savings (including profitable only online)

› Loyalty building

› International growth

› Category specialization (e.g. Akron Hardware)

Traditional B2B Ecosystem (e.g. Dri-Eaz Industrial Dehumidifier)

Offline Dist

Brand Manu

Buyers

Production

Distribution

Consumption

New B2B Ecosystem

Production

Distribution

Consumption

New B2B Ecosystem

Online and Offline Dist

Distributors (private label)

Brand Manu

Buyers

Production

Distribution

Consumption

New B2B Ecosystem

Online and Offline Dist

Distributors (private label)

Brand Manu

Buyers

Production

Distribution

Consumption

B2C Offline

B2C Online

B2B Online

Pure Play Dist

New B2B Ecosystem

Online and Offline Dist

Distributors (private label)

Brand Manu

Buyers

Production

Distribution

Consumption

B2C Offline

B2C Online

B2B Online

Pure Play Dist

New B2B Ecosystem

Online and Offline Dist

Distributors (private label)

Brand Manu

Buyers

Production

Distribution

Consumption

B2C Offline

B2C Online

B2B Online

Pure Play Dist

Next Steps -- POST

Next Steps -- POST

• People: Identify key customer segments and envision 2016

Next Steps -- POST

• People: Identify key customer segments and envision 2016

• Objectives: Set clear and aligned goals

Next Steps -- POST

• People: Identify key customer segments and envision 2016

• Objectives: Set clear and aligned goals

• Strategies: Employ “ACTIVE” strategies

Next Steps -- POST

• People: Identify key customer segments and envision 2016

• Objectives: Set clear and aligned goals

• Strategies: Employ “ACTIVE” strategies

• Technologies: Enable successful outcomes

Thank You

› Andy Hoar

› Senior Analyst

› ahoar@forrester.com

© 2013 Forrester Research, Inc. Reproduction Prohibited 52

BDI

• Industrial Distributor with 192 global branch operations in the U.S., Canada,

Mexico, Europe and Asia, BDI services manufacturing companies throughout the

world. Commitments to customer service, technical expertise and quality

products have been our trademark for success for more than 75 years

› Industries

• Automotive, Ethanol, Consumer Food

Processing, Food Machinery, Grain

Processing, Meat & Poultry Processing,

Fluid Power, Medical, OEM Specialty

Services, Oil and Gas, Package Handling,

Paper Processing, Power Generation,

Waste Water

› Products

• Mechanical & Electrical Power

Transmission, Bearings, Linear Motion

Control, Material Handling, Fluid Power,

Industrial Supplies, Bulk Chemicals,

Retaining/Locking Products, Industrial

Hoses & Fittings, Industrial Tools,

Adhesives, Sealants, Lubricants, Safety

and Sealing Devices

© 2013 Forrester Research, Inc. Reproduction Prohibited 53

BDI

• Have been accepting e-Commerce orders for over 10 years

• Rolling out SAP, starting in Eastern Europe

• Replatforming e-Commerce on top of SAP with Hybris and Endeca

• Multi-lingual

• Multi-currency

• Developed by Rosetta

• Recently started first pilot in Hungary

• Poland/Slovakia/Canada/US to follow

PREPARE FOR THE B2B E-COMMERCE REVOLUTION:

FEATURING FINDINGS FROM FORRESTER RESEARCH’S “STATE OF B2B E-COMMERCE” GLOBAL STUDY & LESSONS LEARNED FROM BDI

Download handouts (PDF) :

www.mdm.com/slides

or info@mdm.com

Event Sponsors: Produced by:

Questions? Download handouts (PDF) : www.mdm.com/slides or contact info@mdm.com