Categories
Ideas Point of view

How online sales in the mechanical sector will evolve

I’m going to talk again about online sales in the mechanical sector, starting from a premise.
In the product supply chain there can essentially be three entities involved (in addition, of course, to purchasers): the manufacturer, the distributor and the retailer. The final purchaser (for example, the company if the sale is B2B) buys from the retailer, who – in turn – buys from the distributor, which is supplied by the manufacturer.
But it can also happen that the distributor and/or retailer are absent and that the buyer purchases directly from the manufacturer. But when intermediaries are involved, they generally have a very specific role and offer added value, as might be, for example in the mechanical sector, with technical consultancy.

Now, as the direction we are heading towards is that of digitisation and interconnection, one question arises spontaneously.

How is the supply chain transformed in the case of online sales in the mechanical sector?

Some of you, commenting on my old post, have raised a specific question: not all tool makers (for example) sell directly online and very often the transition from the retailer is a must; but if the retailer, instead of selling offline, will only do so online, how will it be able to offer the added value of the consultancy that, nowadays, justifies the surcharge of the product you are going to be paying for?
Do you think it is a legitimate question?

The first aspect that I think is important to emphasise is: why can’t the two aspects coexist? By this I mean

“online” is only the sales channel and does not exclude the fact that, on the other hand, there is the figure of the technical salesperson who is able to give me the information I need. Am I wrong?

This, in my opinion, is independent of the fact that the technical salesperson who offers me advice is an external agent who works on commission, or is a sales person directly working for the manufacturing company or for the retail company.

The other aspect to consider is instead linked to the starting strategy.
In fact, if the producer wants to continue working with distributors, they will almost certainly find themselves competing with these new alternative channels and, to be successful, they will have to focus on training the distributor so that the latter is able to sell the right product to the final customer.
If instead you decide to exclude the distributor and invest only in online sales, then you will have to work hard on customer service, for example by placing a chat in your ecommerce, through which you can offer advice to those purchasing.

Whatever the path taken, it is in any case a commercial choice. What must always be present, in my opinion, is the possibility for the buyer to receive the appropriate consultancy support.

But I would add another thing:

there will be – in my opinion – less and less space for distributors and retailers, unless they are able to carve out a substantial share of added value, which might be not only high-level advice, but also involve the possibility of having a well-stocked warehouse (allowing you to deliver quickly) or allowing you to purchase without a mandatory minimum order.

By Stefano Garavaglia

È il CEO di MICROingranaggi, nonché l'anima dell'azienda.
Per Stefano un imprenditore deve avere le tre C: Cuore, Cervello, Costanza.
Cuore inteso come passione per quello che fa, istinto e rispetto per il prossimo. Cervello inteso come visione, come capacità a non farsi influenzare da situazioni negative. Costanza perché un imprenditore non deve mai mollare.

Leave a Reply

Your email address will not be published. Required fields are marked *