Case study: How can we harness digital technology to disintermediate a B2B market? (with abstract)
| Case study: How can we harness digital technology to disintermediate a B2B market? (with abstract) | |
|---|---|
| Published By | [[EY]] |
| Publish Date | 2021 |
| Authors | EY |
| Topics | B2B, Marketplace, B2B Marketplace |
| Statistics | |
| Article Size | words |
| Diagrams | No |
| Downloadable Version | No |
| Reviewers | |
| Page Owner | Nikolay Sidelnikov |
| Summary Author | Nikolay Sidelnikov |
Abstract
Case study by EY devoted to building Indonesia’s first digital B2B marketplace for plastics producers and manufacturers and solving market inefficiencies.
Challenge
Challenges of Indonesia plastic industry are described: - industry is heavily commoditized - small margine - many multilayer intermediaries - small and medium-size manufacturers had problems with the existent multi-layer distribution chains
A dominant player on this market was looking to change the situation "before it was itself disrupted by changing market dynamics".
Solution
A new business model was suggested.
Proposed solution centered on developing a B2B marketplace online, fostering collaboration among producers, manufacturers, and other ecosystem players. The platform's design was meticulously tailored to the intricacies of the plastics market.
By streamlining exchanges and enhancing transparency, the platform aimed to democratize the market, inviting greater participation from diverse stakeholders. Beyond facilitating transactions, the platform integrated features like financial due diligence, real-time tracking, and automated support to optimize the supply chain and boost productivity.
Result
Despite launching during the global pandemic and economic crisis of 2020, the digital managed marketplace achieved significant success, logging US$100 million in gross merchandise volume within its first six months.
This success not only addresses longstanding challenges for producers and customers but also opens opportunities for further innovation and disruption in the plastics industry and beyond.