Today In B2B: Slowdowns Hit B2B Payment Terms, Warehouse Shipments
Today in B2B payments, slowdowns are hitting B2B payments for Chinese corporates, as well as shipping to U.S. stores and warehouses. Plus, LiveArea lets businesses accelerate their B2B eCommerce roadmaps, while India’s B2B eCommerce ecosystem grows.
As customers delayed payments in the wake of economic deceleration, firms in China are waiting two times as long for payments than they did in 2015. It took 54 days on average for private manufacturers to receive payment in the first three quarters of 2020 compared to 45 days last year and 27 days five years prior, the Financial Times reported, citing official information. A number of private firms, headed up by manufacturing firms, are contending with lags in payment after a jump in credit sales, even though business activity is bouncing back in the second-biggest economy in the world. In the first nine months of 2020, Chinese manufacturing facilities registered a 14.3 percent rise in accounts receivable, which is said to be the quickest increase in six years.
Supply chain delays are impacting the restocking activities of merchants, with Crocs Inc. and Steve Madden Ltd. leaders saying in their Q3 reports that they were impacted by shipping bottlenecks in moving products to shops and distribution hubs, The Wall Street Journal reported. In the spring and summer, container shipping lines called off hundreds of voyages amid pandemic-fueled lockdowns that negatively impacted economies and international trade that dried up. Demand formidably returned during the summer once companies opened again and merchants quickly worked to replenish their stock to have merchandise set to go for a desired rally in the autumn.
Global customer experience and commerce agency LiveArea has launched FastTrack Commerce in the U.K. to provide technology and services for quick eCommerce integration, according to a press release. The new product will reduce the time it takes to implement the SAP Commerce Cloud by up to 40 percent, the release stated, and cut customer onboarding time in half. FastTrack, as such, has everything a company needs to build a B2B commerce solution, according to LiveArea. The tech involves numerous pre-built accessories like data feed integrations to simplify and hasten the adding of pricing, inventory and catalog information, along with quick-order capabilities, order management system integration, a content delivery network, tax calculation and advanced analytics, including search engine optimization, ratings and reviews.
India’s Tradologie is looking to make the country a “self-reliant and self-sustaining powerhouse” through a B2B platform that facilitates uninterrupted trade for both local and foreign parties. According to a press release, the company is revamping the usual B2B processes by cutting the costs of commodities for the buyer in real time, so “more gets done in less time while using fewer resources,” which has the effect of making the price visible while the deal is still on. “We have eliminated the hassle of making phone calls or sending out emails at the start of a business deal,” CEO JK Arora said, according to the release. “In a limited span of three years, we have been able to generate business of 18 billion by enabling trade between 200,000 buyers and 20,000 sellers with zero-ground staff across 65 countries serviced by manufacturers based out of 14 countries.”