How Online Commerce Is Disrupting Industrial Supply

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The UPS Industrial Buying Dynamics Study is one of the few detailed studies available on the relationship between industrial buyers and suppliers.

This study provides a unique understanding of how industrial buyers identify suppliers such as industrial distributors, manufacturers, and e-marketplaces, their satisfaction with existing suppliers and their propensity to change suppliers in search of improved value and service.

Interviews were carried out with purchasing professionals and the study provides a detailed view across countries and sectors.

UPS Industrial Buying Dynamics Study

The UPS Industrial Buying Dynamics Study reveals interesting details on the reshaping of the industrial purchasing world.

The results of the series of industrial buying surveys which UPS has conducted since 2013 show that industrial buyers are purchasing more and more online.

The system whereby intermediaries broker the sale and distribution of industrial products between manufacturers and end users is facing disruption.

The two key drivers for this change in buying behavior are;

1. the rise of e-marketplaces (such as Amazon Business, ThomasNet.com, IndiaMart, and Alibaba) and
2. direct-from-manufacturer sales

The survey results also show that industrial buyers have a high propensity toward switching suppliers.

If price and quality remain the most important drivers of supplier choice, the differences will be made on services such as insurance, exporting capabilities and, most importantly, postsales service, a key differentiator in the future of the manufacturing world.