COVID-19 Impact on B2B Payments
The B2B industry has had to pivot and shift as the pandemic has left everyone scrambling. Businesses who depend on global supply chains and manufacturers are greatly impacted as port closures and air travel restrictions wreak havoc on product distribution. According to a joint report from American Express and PYMNTS, 75% of supply chain managers are experiencing transportation-related issues.
For companies who are lucky enough to retain their suppliers, they have had to rethink purchasing practices to ensure that their vendors are able to stay in operation and continue selling to them. This concern has prompted major companies to start paying their small vendors faster.
How are B2B Companies Adapting?
Businesses are adopting new strategies to meet customers’ needs and working on building stronger relationships with their clients. One cleaning supply distributor for brands like Purell and Clorox said it is pulling from lessons learned during the 2009 H1N1 and 2016 Zika outbreaks. They are focused on increasing communications with clients, helping customers know what inventory is available, and maintaining delivery schedules.
Other companies, like supermarkets, are also working on arrangements with their suppliers to fulfill the rising customer demand. Some food providers are releasing more inventory from storage, increasing hours in their factories to produce items that have the highest consumer demand, and finding ways to allow employees to work remotely in order to keep the supply chain moving.
What Does the Future Hold for the B2B Supply Chain?
Consumers are rapidly changing their shopping habits during this public health crisis. Shelter-in-place orders have forced millions to avoid physical stores and stop using cash. Many are utilizing online shopping carts, digital wallets, and even providing credit card numbers over the phone to keep their distance from others.
For the B2B industry, this pandemic has demonstrated the necessity of creating supply chains that can be flexibly adjusted, thus letting companies adapt so that an issue impacting one part of their process does not overturn all parts, according to Brian Reed, vice president of business development and supply chain optimization at global transport and logistics company GEODIS.
How Can Infintech’s B2B Solutions Help?
Contact us online or call 1-800-621-8931.
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