What Is B2B Logistics? A Quick Guide

A B2B or business-to-business service is one where there are one or more commercial transactions between two businesses, as opposed to goods being delivered directly to the end-user or customer.

Most businesses depend on B2B service providers for a smooth customer experience. Good examples of this are third-party providers, 3PL distributors, skilled partners for particular tasks, and even professional customer care teams to cater to unique customer needs. Businesses can also partner with government agencies and non-government organizations in some cases

Contracts with B2B service providers are usually yearly or longer than that. The service providers are responsible for smooth delivery operations and distribution so that the client can achieve their SLAs. B2B logistics services can ensure a smooth flow of the supply chain and improve customer experience.

How does B2B logistics work

B2B logistics is all about establishing a long-term relationship with clients. In it, businesses will have enough to deal with large bulk orders periodically. It’s more efficient to do B2B deliveries in advance, as this can reduce the frequent purchase of orders.

How B2B logistics differs from B2C

B2B Logistics	B2C Logistics
Orders are larger in quantity and lower in volume.	Few items in an order that is delivered directly to individual customer doorsteps.
Buying decisions are based on cost, quality, reliability and supplier relationships.	Buying decisions are based on convenience, availability, brand reputation, and customer reviews.
Shipping methods are complex and can involve multiple modes of transportation.	Shipping methods are simple and may involve parcel carriers as well as local delivery services.
The focus is on building long-term relationships, maximizing cost-efficiency and cost-effectiveness.	The focus is on providing fast, reliable and cost-effective delivery.
Pricing is based on the current requirements of the receiving business.	Pricing and transactions are made on standard prices.
The cost of shipping is high, and orders take longer to reach the destination.	The shipping cost is low, and the order arrives within a few days, weeks, or hours of the placement.

What are the Locus B2B logistics offerings?

Locus’ dispatch management platform is an integrated tool that fulfills all B2B logistics delivery requirements. Its offerings include:

1. Greater visibility and transparency
   With Locus’ dispatch management platform, businesses can get a bird’s eye-view of what’s happening in the B2B logistics. It enables them to know if there are any issues in capacity utilization and Service Level Agreements (SLA) and solve them. Also, its timely notifications and alerts ensure customers stay informed about the order's progress.
2. Route optimization and optimal route planning
   Route deviations and poor route quality can put businesses at considerable risk. Companies can use Locus’ route optimization software to sequence their routes, optimize them, and dynamically reroute them for last-minute changes. It helps fleet drivers adapt to last-minute changes and deliver their orders on time.
3. Customer-preferred time-slot deliveries
   When businesses cannot provide multiple time-slot options to their customers, they lose their trust. The Locus delivery-linked checkout feature allows customers to choose their delivery time slots. These time slots, integrated with dynamic capacity slotting, make it easier for fleet managers to use their capacity fully. This helps businesses serve the customer preferred time slots and ensure a superior customer experience without compromising on profitability.
4. Insights and analytics
   Businesses can use Locus’ dispatch management platform to view essential metrics and gain insights from them. These insights help them identify weaknesses, strengths, opportunities, and threats and work accordingly.
   
   With its unified dashboard to view the delivery performance and quickly-generated reports, the Locus dispatch management platform helps businesses make strategic, tactical, and operational decisions needed for the time. Its advanced Artificial Intelligence (AI) capabilities and insights ensure that upcoming deliveries perform better than the previous ones.