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This Expert Says Businesses Will Secure Stronger Supply Chains Post-Pandemic

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This article series spotlights key business trends identified by the expert members of Forbes Councils. Find out if you qualify for Forbes Technology Council here.

The COVID-19 pandemic has left procurement teams around the world scrambling to protect their supply chains. According to the Harvard Business Review, most companies were not mapping their supply chains pre-pandemic; now they lack the necessary data to discern which suppliers and products are at highest risk and which sources offer suitable alternatives. Those companies that did proactively invest in mapping their supply chains have been able to procure the last of limited resources, greatly minimizing the impact of COVID-19 on their production.

Companies have resisted mapping their supply chains because the effort has been notoriously expensive, as well as time and labor-intensive, taking a hundred-person team up to a year. In the absence of fast and reliable data, many companies have sourced anecdotal information from personal contacts with their suppliers.

Advancing technology and a growing millennial workforce – combined with COVID-19’s call to action – are poised to change this. While seamless, omnichannel e-commerce used to be a hallmark of the business-to-consumer (B2C) world, millennials accustomed to superior online shopping have demanded the same standard in the business-to-business (B2B) space. Recent data shows 73% of millennials now influence technology purchasing at their organizations, while 34% assume full responsibility. As a result, the B2B e-commerce market is now worth six times more than B2C.

Forbes Technology Council member Amit Ojha is Vice President of Technology at IngredientsOnline.com, an innovative, transparent e-commerce platform for supply chain sourcing in the dietary supplement, food, beverage and cosmetic industries. Ojha says businesses that used to buy and sell raw materials on the floor at trade shows were shifting to online procurement years before the coronavirus pandemic. Now, amid travel bands and limited in-person interaction, even more buyers are looking online.

“The supply chain industry is implementing innovative methods to pick, pack, ship, track and deliver products in record times. Businesses are moving away from traditional supply chain methods by leveraging data and smarter order management systems,” Ojha said. His experience in the consumer goods industry and understanding of user sentiment drives Ojha to leverage technology to provide simple solutions that both simplify and enhance the B2B purchase journey.

IngredientsOnline offers thousands of products from hundreds of factories around the world, alongside real-time inventory and quality assurance information. The platform has implemented multiple digital processes to reduce its error rate, while increasing shipping efficiency and on-time deliveries. As a result, its return rate is less than 1%.

Even without standard traffic drivers like trade shows and in-person sales meetings during the coronavirus pandemic, IngredientsOnline’s sales increased 32% from January to February and another 32% from February to March. “We have also shipped 100% of orders with a less than 1% error rate,” Ojha said.

Even complex and challenging times require a simple but effective solution. “It's a difficult transition for both consumers and industries; as a technology leader, your focus should be on making it simple for people to find, purchase and track the products,” said Ojha. While each segment has different needs that require unique marketing, ultimately, he says, “everyone is a consumer, regardless of what they are buying,” and they’re driven by common denominators such as product availability, affordability and shipment speed.

In the aftermath of COVID-19, Ojha thinks more businesses will leverage data to make smarter purchase decisions, while better planning for disruptions to their supply chains. By providing online access to hundreds of raw materials alongside vital information – factory of origin, quality control documentation, factory-direct tiered pricing quotes and real-time U.S. inventory status – companies like IngredientsOnline are innovating a more predictable future.

Ojha sees an essential paradigm shift: “Purchasing agents, R&D and C-level team members can now save time and money in their everyday workflow, with complete transparency and peace of mind.”

For more information, check out Amit Ojha’s executive profile here. To learn more about Forbes Technology Council and see if you qualify for membership, click here.