3PL and E-Commerce: 10 B2B Stats
Scott Hothem • August 13, 2014
It’s that time of the year again. The time of year when we see more school buses than cars on the street. The time of year when school zones are bustling with kids and crossing guards as we make our way to work. The time of year when aisles at Wal-Mart and Target are buzzing with parents trying to find those last minute school supplies.
In a growing trend, more parents are skipping the long lines and crowded aisles in favor of ordering online. With the increase in free shipping and second day delivery options, having schools supplies neatly delivered to your doorstep is an attractive option. The National Retail Federation shows that 31.7% of consumers shopping for K-12 will shop online this year, compared to 30.8% in 2013. Furthermore, a survey by Accenture shows that 70% of those shopping online for school supplies expect to save money.
With something as traditional as school supply shopping moving toward an e-commerce solution, how are business to business companies adjusting to this growing platform? Here are 10 facts, stats and trends that describe the current landscape of B2B e-commerce.
- Digital buyer penetration is at an all-time high and forecasted to grow. Statista research shows that 41.3% of internet users purchased products online in 2013. That number is expected to grow to 47.3% by 2018.
- Intershop’s 2013 E-commerce Report reveals that 60% of respondents believe that B2B commerce is shifting from offline or in-store to online and self-service.
- The same study shows that 97% of B2B retailers currently offer their products online.
- 37% of companies plan on spending a larger portion of their budget online in the next year, according to an Acquity Group study.
- Only 13% of companies with budgets of $500 million or more purchase directly from a supplier’s website. 50% of these companies spend at least 90% of their budget online. Third party websites are earning 37% of this business, based on an Acquity Group study.
- 97% of retailers believe that mobile commerce initiatives will be important in next 12 months, per Intershop’s 2013 report.
- Acquity’s study shows that 30% of companies make a major purchase online 2-4 times each month.
- Internet Retailer and Forrester Research conducted a study that shows that 86% of B2B companies surveyed had recently transitioned offline customers online.
- 70% of B2B e-commerce professionals have plans to increase their technology budgets in the coming year, according to Forrester.
- 44% of B2B retailers believe that moving customers online can result in more return customers and increased brand loyalty, per Intershop.
Much like the growing trend of customers using online shopping services like Amazon, business to business firms are doing the same. The value and efficiency that come from e-commerce platforms not only benefits the consumer’s bottom line, it can increase your revenue as well. A major component of this new online terrain falls directly on logistics. Ramping up your e-commerce efforts will require distribution resources and fulfillment expertise.
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This year marks an important milestone for Barrett Distribution — 20 years of participating in The Great Game of Business® (GGOB) , a program that has helped shape our culture, strengthen employee engagement, and create a stronger sense of teamwork and shared success across the organization. Over the past two decades, GGOB has become much more than a business program at Barrett. It has become part of the way we communicate, collaborate, and grow together as a company. Through open-book management principles, weekly huddles, forecasting, scoreboards, and Mini Games, employees across Barrett locations have had the opportunity to better understand the business and actively contribute to its success. One of the most meaningful impacts of GGOB has been the way it brings people together. In an industry built on precision, service, and operational excellence, collaboration is essential. Barrett’s success depends on teams working together across departments, facilities, and regions — and GGOB has helped strengthen those connections by creating a culture centered around communication, accountability, and involvement. GGOB encourages employees to think beyond their individual roles and understand how their work impacts customers, coworkers, and overall company performance. Whether it’s improving warehouse efficiency, supporting transportation operations, enhancing customer service, or identifying process improvements, employees are empowered to contribute ideas and solutions that help move Barrett forward. As Tim Barret, Founder of Barrett, states, "...we share all of the financial results with all of the employees, and they have a vested interest since they will receive a payout result." That sense of involvement creates stronger engagement across the organization. Employees are not simply completing daily tasks — they are participating in the success of the business. By understanding company goals and key performance drivers, teams are able to work together with a shared purpose and celebrate accomplishments collectively. Community and collaboration have always been important values at Barrett, and GGOB has helped reinforce those values over the last 20 years. The program creates opportunities for employees to learn from one another, support one another, and recognize the impact each person has on the organization. It encourages transparency and open communication, helping employees feel more connected to leadership, their teams, and the company’s long-term vision. As Barrett has continued to grow nationwide, maintaining a strong culture has remained a priority. GGOB has played an important role in helping preserve the family-oriented environment that Barrett is known for, even as the company has expanded operations and welcomed new employees across the country. The program helps create consistency in communication and engagement while keeping employees connected to the bigger picture. To help celebrate this 20-year anniversary, Barrett owner Tim Barrett recently participated in a video discussion reflecting on the company’s GGOB journey and the impact it has had on Barrett over the years. The conversation highlighted how collaboration, employee involvement, and shared accountability continue to contribute to the company’s success today. This milestone is ultimately a celebration of the people who make Barrett successful every day. The dedication, teamwork, creativity, and commitment shown by employees across the organization are what continue to drive Barrett forward. Twenty years later, The Great Game of Business continues to strengthen the culture of collaboration and engagement that makes Barrett special — and the future of the game is stronger than ever.
How Barrett Is Improving Inventory Accuracy with AI-Powered Warehouse Visibility
Choosing the right fulfillment partner is one of the most important — and often most difficult — decisions a growing brand can make. As customer expectations continue to rise, brands are being asked to deliver faster shipping, better inventory visibility, seamless omnichannel experiences, and retail compliance at scale. At the same time, the process of finding the right 3PL partner can be time-consuming and overwhelming. That’s why Barrett Distribution Centers is excited to partner with Fulfill.com. Who Is Fulfill.com? Fulfill.com is a fast-growing platform that helps eCommerce and omnichannel brands find the right third-party logistics (3PL) partner for their business. Their team works directly with brands to simplify the 3PL search process by connecting them with vetted fulfillment providers that match their operational needs, growth goals, product requirements, and shipping profiles. Founded by entrepreneurs with firsthand experience navigating fulfillment challenges, Fulfill.com was built to solve a common industry problem: too many brands waste valuable time and money trying to find a reliable logistics partner. Instead of forcing brands to sort through endless provider options on their own, Fulfill.com streamlines the process through industry expertise, technology, and a carefully curated network of fulfillment providers across multiple verticals. For brands, that means less guesswork and a faster path toward finding a fulfillment partner that can truly support long-term growth. Why the Partnership Makes Sense At Barrett, we’ve always believed fulfillment should feel like a partnership — not just a vendor relationship. Since 1941, Barrett Distribution has helped brands scale through customized logistics solutions designed around their specific operational needs. From direct-to-consumer fulfillment and retail distribution to transportation management and value-added services, Barrett focuses on building flexible, scalable solutions that evolve alongside its customers. That customer-first mindset is one of the biggest reasons this partnership with Fulfill.com feels like such a natural fit. Both companies share a common goal: helping brands build stronger, smarter supply chains without unnecessary complexity. What Really Makes a Great 3PL Partner? Recently, Bryan Corbett, Barrett’s VP of Customer Solutions & Marketing, sat down with Dan White, COO of Fulfill.com, during a visit to Barrett’s NJ2 warehouse to discuss what stands out when evaluating 3PL providers across the industry.
