E-commerce has made automation look effortless, with robots picking products in warehouses, real-time inventory tracking, and automated order processing. Consumers receive deliveries in record time, making it seem like automation is a simple solution for supply chain efficiency.
However, when it comes to B2B supply chains, automation is significantly more complex. Unlike e-commerce, which follows a largely standardized process, B2B logistics involves multiple stakeholders, customized workflows, and strict compliance requirements. Let’s explore why automating B2B supply chains is far more challenging.
Managing Documents & Compliance
B2B shipments involve extensive documentation, including airway bills, invoices, proof of deliveries, and tax records. Each of these documents requires multi-level approvals and compliance checks before the shipment can move forward. For example, invoices may need verification from multiple departments, and proof of delivery must be processed before payments are released.
Unlike e-commerce, where order fulfillment is relatively straightforward, B2B transactions must comply with regulatory standards and audit requirements. Any errors or delays in document processing can disrupt operations, leading to financial losses or legal complications. Automation in B2B must integrate regulatory compliance, approval workflows, and audit trails to streamline these processes effectively.
Diverse Delivery Models
B2B logistics caters to a wide range of customers, including large retailers, small kirana stores, wholesalers, and distributors. Each has different storage requirements, paperwork needs, and approval processes.
- Large retailers often require centralized warehousing and bulk shipments.
- Small stores need direct deliveries in smaller quantities.
- Wholesalers and distributors manage stock replenishments, demanding precise inventory control.
Unlike e-commerce, where automation follows a fixed process from order placement to delivery, B2B automation must be flexible enough to handle varying order sizes, multiple distribution points, and different payment cycles. A standardized automation system cannot accommodate these diverse workflows, requiring businesses to implement adaptive automation solutions.
Limitations of Standard Software
Most available automation solutions are designed for predictable, high-volume e-commerce operations, where processes follow a repetitive and streamlined workflow. However, B2B supply chains operate with variable order sizes, customized pricing, and multi-tiered approvals, making traditional automation software insufficient.
For example, a standard e-commerce automation tool may handle inventory updates, order tracking, and automated invoicing with ease. In contrast, B2B operations require additional features such as customized approval hierarchies, demand forecasting, and flexible order management to ensure smooth operations. Without these tailored solutions, inefficiencies and delays increase, impacting overall business performance.
Despite the challenges, automation is the future of B2B supply chains. Automation just needs a different approach. Unlike e-commerce, where automation is designed for speed and volume, B2B automation must prioritize flexibility, compliance, and customization. The key is not just to automate, but to build automation that works for the unique needs of B2B logistics.
