Social Media Will Change B2B Distribution Channels

Author:

Kipp Bodnar

Source:

Over the past year here at Social Media B2B we have talked at length about the marketing implications of B2B social media. However, the bigger picture is that the Internet is changing all aspects of B2B companies from human resources down to channels of distribution. Historically, the issue of B2B product distribution has been a crutch for many organizations. Business have often used their complex product distribution pipelines as excuses.
 
The Social Web Flattens B2B Product Distribution
Depending on your industry, you are likely all too familiar with product distribution processes that involves multiple distributors, sales reps, independent sales reps, etc. All of these people used to be very important steps in a distribution process to get the product from a manufacturer to the end-user. A large and powerful world of spiffs and agreements have been created to buttress these channels of distribution.
 
While these powerful supply chains still exist, many are on their way to extinction. The distribution networks were created when it took a major commitment of money and man hours to have an infrastructure to sell B2B products. The Internet has greatly reduced the cost and commitment to bring a product from development to market for distribution. B2B companies are now in the process of understanding what many major retailers have known for years now...