Here is the conference we gave at the eCommerce Expo London 2012 on :" How to manage Business to Business trade using new technologies ? ".eCommerce solutions are rarely target for professionals activities. Find out how Xi Ingénierie uses the architecture and flexibility of the Magento platform for professional activities: B2B, B2B2C, extranet, client extranet, client specific tier pricing by quantity, sales force, business user accounts, system information integration. Also learn how to simplify the management of your business by connecting your online sales channels with your management tools (ERP/SI). See the differences between activities with and without an ERP connection.

1. How to manage
Business to Business using
new technologies ?
The technological performance that services your eCommerce

2. Thierry Vercruysse
Magento Architect
Magento Certified Developer Plus
Alex Barbier
Watco Group
Marketing Director

3. The technological performance that services your eCommerce
 Creation & restructuration of
eCommerce websites
 B2B eCommerce
 Synchronizing ERP / eCommerce websites
 Audit & Counseling
 Custom Developments

4. Background :
 Established in 1927 in UK.
 Pure Direct Mail catalogue business (4,000,000 catalogues
sent in 2009)
 Turnover breakdown in 2009: 97% catalogue 3% online.
Challenges :
 Needed to go multi-channel to remain successful
 Gerographical expansion
Watco Today :
 Branches :
 8 websites and 1,900,000 catalogues sent in 2012
 Turnover breakdown in 2012 75% catalogue 25% online.

5. Agenda
 B2B, what else?
 The specific needs of B2B
 Connection to management tools
 Conclusion
 Questions

6. B2B, What else?

7. B2C / B2B : two different approaches
 Regulation
 Target
 Usage
 Processes
 Tools
 Customer relations

8. Some Differences B2C / B2B
B2C Customers B2B Clients
 Only one contact  Several contacts
 Search for a product  Search for a supplier
 Wish to act without help  Wish to be assisted
 Want a simple service  Want a detailed service
 Expect a promotional  Expect pricing conditions
offer
 Slower purchase rate
 Quick purchases

9. Some Differences B2C / B2B
B2C Seller B2B Seller
 Prefers impulse purchases  Prefers reasoned purchases
 Works on a high volume of  Work on a high volume of
transactions conversions
 Expand targets  Limit their targets
 Control transactions  Manage the clients
 Build the reputation on the  Build the reputation on the
product range services
 Speed up sales  Finalise sales

10. Some differences B2C / B2B
B2C Features B2B Features
 A customer account  A business account
 General access to the  Personalised access to
offer the offer
 VAT inclusive pricing  VAT exclusive pricing
 Promotional pricing  Personnalised pricing
 An order  A quote
 Instant payment methods  Deferred payment
methods

11. Results Watco B2C / B2B
Metric Vs. 6 previous months Vs. 3 months forecast
 Revenue 40% 108%
 Orders 52% 34%
 Visits 38% AOV 55%
 New Customers /
35%
month
 Organic search
53%
visits

12. Various B2B Profiles
 B2B clients similar to B2C
 Typical B2B Clients
Account management, business validation, sales
management, CRM, invoicing, pricing matrix…
 A mix of B2B + B2C Extranet clients,
procurement, drop shipping, white label,
co-branding (grey label)…

13. B2B Purchasing Behavior
 Online purchasing particularly in the
Small/Medium sized business sectors
 Strong reluctance to change
Force of habit, existing relationship with suppliers
 Strong influence of off-line
CCM Benchmark Study / FEVAD – February 2012

14. Specific B2B Needs

15. B2B Specifics : Multisite
• Need : Optimising the presentation of a very large catalogue
• Solution : Segmentation of products and sites
• Result : Up to 10 times higher purchase rate

16. B2B Specifics : private access
• Need : Offer a private service for business customers
• Solution : Required authentication
• Result : A site with personalised features

17. B2B Specifics: Advanced price management
• Need : Display VAT inclusive/exclusive prices,
public/customer specific pricing...
• Solution : Granular control of price displays
• Result : A coherent pricing policy, better customer relations

18. B2B Specifics: Pricing matrix
• Need : Apply negotiated prices to a specific business customer
• Solution : Management of pricing matrices within Magento
• Result : The prices in accordance with a pre-established contract
with the client
1 product, 1 quantity, 1 client = 1 price
10.000 products
x 10 units
x 20.000 customers
= 2.000.000.000 prices !

19. B2B Specifics: Business accounts
• Need : Manage the customer business account
• Solution : Creation of the Business entity in Magento
• Result : Information and behavior adapted to the business

20. B2B Specifics: business contacts
• Need : Deal with multiple contacts from the customer’s
business
• Solution : Manage the connections between the legal entity and
the individual
• Result : Adapted access permissions, strengthened activities,
workflows

21. B2B Specifics: Fast order
• Need : Online equivalent of a paper based purchase order
• Solution : Rapid entry of products and quantities
• Result : Orders are quickly completed and adapted to internal
processes. Also provided: reorder capability

22. B2B Specifics: catalog and sample requests
• Need : Offer to send paper catalogs and samples
• Solution : Managing catalog and sample requests within Magento
• Result : Increase conversion rates

23. B2B Specifics: quote management
• Need : Manage multiple parallel quote requests
• Solution : Adaptation of Magento, saving product lists
• Result : Quotes managed by customers and converted into orders

24. B2B Specifics: local pickups
• Need : Offer local pickups at the nearest depot
• Solution : Geolocalisation of pickup points
• Result : An essential service for certain
businesses

25. B2B Specifics : pay on account
• Need : Apply B2B payment methods, periodical payments
• Solution : Creation of payment methods, specific ERP integration
• Result : Payment methods conform with the pre-established
contract signed with each business customers

26. B2B Specifics : partial payments
• Need : Debit the customer on transfer of goods
• Solution : Partial payments on order, debit on dispatch
• Result : Flexible payment solutions

27. B2B Specifics : white/grey label
• Need : Offer a sales platform to your clients’ customers
• Solution : Creation of an affiliate platform within Magento
• Result : Hooked customers, re-occuring business services

28. B2B Specifics : import of supplier catalogues
• Need : Updating the sites from supplier catalogues
• Solution : Automatic importing with intelligent mapping
• Result : A pertinant catalogue, closely matching the demand

29. Connection to management tools

30. Integration to IS : why?
• Automating reoccuring tasks
• Apply established business procedures
• Make the information reliable
• Close to real time
• Optimise stock
• Multi channel sales
• Use the customer’s portfolio
• Optimise after sale service

31. Life without the proper tools
• Dropped connections
→ Lost data
• Incomplete files
→ Partial data
• Bugs
→ Corruption of data
• Import errors
→ Manual reconstruction of data
• New version of website / ERP
→ Rebuild of connections

32. Life without the proper tools
• Impossible to control dataflows
• Unreliable security
• Weak or no traceability
• Late identification of errors
• Interdependant tools
• Frozen information system

33. Integration to IS : how?
• Isolate the tools
> Limit risks
• Use tools for intended purpose
> Optimise features
• Avoid specific developments
> Make the IS upgradable
• Understand and validate exchanges
> Supervise activities

34. Integration to IS : how?
• Independance
• Strength
• Reliability
• Security
• Control
• Recovery

35. Key principles
• Define responsabilities
• Control dataflows
• Control transactions
• Validate data
• Step by step backup
• Ensure rollback and recovery
• Highlight errors

36. Integration to IS : how?

37. Conclusion

38. B2B with Magento
• An expanding market
• Not one, but many B2B models
• Many specific needs
• Originally designed for B2C but with the
flexability to be adapted to B2B

39. Questions ?
Stand Number
208

40. Learn more ?
Do You need further information regarding the Magento
eCommerce ?
www.x2i.fr/uk
Email : contact@x2i.fr
Tel : +33 (0) 5 61 82 58 86
Fax: +33 (0) 5 47 55 10 26
45 impasse de la Flambère
31 300 – Toulouse - FRANCE
The technological performance that services your eCommerce
La performance technologique au service de votre e-commerce