Question

In: Operations Management

Please read case and answer the questions thank you. As B2B e-commerce continues to grow, companies...

Please read case and answer the questions thank you.

As B2B e-commerce continues to grow, companies are placing more emphasis on upgrading their e-commerce infrastructure, taking many cues from B2C companies in the process. Streamlining their online stores and ensuring that potential customers can make purchases across a variety of channels has become just as important for B2B companies as it is for B2C companies. B2B e-commerce accounted for $6.7 trillion of the total $14.6 trillion in B2B trade in 2016, and that B2B e-commerce is expected to increase to around $9 trillion by 2020. For B2B e-commerce companies, there’s a lot at stake.Sana Commerce is a B2B e-commerce software company founded in 2008 and headquartered in the Netherlands. Sana provides B2B enterprise multichannel e-commerce, which is integrated with ERP systems. This means that Sana allows its clients to initiate transactions from physical stores, online stores, mobile app stores, telephone sales, or any other method. A number of companies offer these types of services, but Sana is unique in that it integrates within already installed enterprise resource planning (ERP) systems. Sana Commerce allows businesses to achieve better customer service, higher sales efficiency, and increased revenue. It’s compatible with many major ERP systems, including most versions of Microsoft Dynamics and SAP systems, and its Webshop is installed within that system, as opposed to functioning separately and interfacing with that system externally. This ensures that companies using Sana don’t have to make large investments in new ERP systems. Sana uses the pre-existing ERP’s business logic and information rather than forcing a complicated integration.This feature of Sana Commerce appeals to many companies, including Mechan Groep, distributor of agricultural machinery, wholesale goods, and aftersales supplies. Mechan Groep is based in Achterveld, Netherlands, employs 180 people, with clients in both the Netherlands and Belgium. The company earns 180 million euro per year, according to Mechan Groep CFO Rene Schwiete, who is featured in the video.Mechan Groep’s aftersales department uses Sana to better serve the needs of its dealers. Mechan Groep implemented Sana because of its preexisting use of SAP ERP software, and Sana’s Webshop worked within its larger SAP systems flawlessly. There are 105 dealers in Mechan Groep’s network. These dealers use Sana’s Webshop to access Mechan Groep supplies. Dealers can view inventory on a daily basis and select the urgency with which they need supplies. Mechan Groep’s custom Webshop offers over 700,000 items to Mechan Groep’s dealers.

1.How does Mechan Groep staff fulfill each order as it comes in on Sana Webshop?

2.What type of clients does Mechan Groep serve? Why is the speed of Sana Webshop important?

3.What types of B2B e-commerce companies is Sana best suited for?

Solutions

Expert Solution

Summary of the case.

B2B e-commerce has huge potential to grow and continue the successful models, companies are placing more interests in upgrading the strong e-commerce infrastructure, taking many learnings and models from B2C companies. Channelizing the online purchase across the channels or dealers of B2B companies as same as B2C companies. B2B e-commerce has huge potential to grow or increase the revenue of $6.7 trillion of the total $14.6 trillion to increase to around $9 trillion by 2020. Sana Commerce is a B2B e-commerce Software Company that provides multichannel e-commerce platform, integrated with Enterprise Resource Planning (ERP) systems and makes its clients to implement transactions smoothly or clearly from physical stores, mobile application stores, online stores, telephone sales, or any other method. Sana is unique from its competitors, in a way it integrates within already installed ERP systems and compatible with many major ERP systems in this industry, including versions of Microsoft Dynamics and SAP software systems, and its Webshop systems. The company offers businesses to attain value to the customer care, higher volume of sales models, and more revenue and doesn’t have to make large investments in new ERP systems. Mechan Groep attracts the features of Sana for the distribution of agricultural machinery, wholesale goods, and aftersales supplies of Mechan. For a company earns 180 million euro per year, companies aftersales department installed Sana to better serve the needs of its clients and dealers. Software helps to connect the companies 105 dealers in-network and to access supplies. Dealers can view and check inventory levels on a daily basis and select the priority with which they need supplies over 700,000 items to Mechan Groep’s dealers.

1. How does the Mechan Groep staff fulfill each order as it comes in on Sana Webshop?

Mechan Groep’s employees fulfill every order by placing every individual order through the SAP system. Integrated eCommerce software tools that turn SAP or Microsoft Dynamics system into the engine of Mechan’s web store. Following this procedure, the employee (staff) will then collect up the individual orders that were printed or showcased in the system and get the resources required. Check and pack the final product to finish the job from the warehouse. Finally, after the order has been delivered to the individual, the employee will then change the order status to complete. Later note, after the order status has been changed the financial department will send the physical or e-invoices to their customers. By using this Webshop, the company attains more value on customer care, higher sales models, and accuracy in inventory management.

2. What type of clients or dealers does Mechan Groep serve? Why is the speed of Sana Webshop important?

Mechan Groep serves and a major percentage of clients are farmers, by the distribution of agricultural machinery, wholesale goods, and aftersales supplies related to farming and agricultural purposes. The high need of parts for their machines and technical solution for their machinery is mandatory and Mechan supplies over 700,000 items. Sana Webshop to be victorious, it is important for them to maintain standards with speed and management of product carts in regards to their farmer's needs and wants. According to Sana Webshop, the farmers can raise a request in Webshop and provide clarity in their requirements. Mechan Groep will ensure with all the right inventory and supplies to solve the problem.

3. What types of B2B e-commerce companies are Sana best suited for?

The Sana helps buyers to navigate and makes clients journeys or sales business model easy and structured. The Business to Business (B2B) e-commerce companies Sana Commerce is suited for is the small to medium companies. It’s easy to purchase the software from a third party, like Sana rather than going to build with more costly resources and funds to build their own Webshop. Small to medium-sized companies prefer efficient, easy and cost effective solutions to feed their market demands and requirements by trusting the Sana like ecommerce software’s only.


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