According to eMarketer, B2B buyers are switching from their current suppliers to new suppliers amid COVID-19. The top reason for the switch is that existing suppliers are unable to offer delivery. The pandemic has placed a strain not only on suppliers but on the supply chain as well.
Other reasons B2B customers switched suppliers include the supplier is out of stock; their existing supplier cannot offer online ordering and a limited product range with the current supplier.
COVID-19 has exposed operational vulnerabilities within B2B firms. Many firms cannot react quickly to the crisis and lack effective contingency plans to manage such a shock to their business operations and industry.
Looking ahead, B2B companies need to create plans that include contingencies in managing unexpected surges in demand, sudden stock shortages, restocking delays, and employee shortages due to illness or fear of catching the virus.
The solution is not simple. However, if B2B firms want to reduce the impact of COVID-19 or any other potential industry crippling event, they need effective processes and procedures to manage some of the suggestions noted above.