A 2022 government commissioned report into the Australian workforce revealed a major labor shortage affecting the country. For Australian manufacturers, suppliers, and wholesalers, the skills shortage has provided to be both a unique challenge, as well as a unique opportunity, especially for digital transformation.
B2B organizations have begun leaning on their online channels more heavily, leveraging business process automation to save time and ensure internal teams aren’t strained.
This blog will cover the Australian labor shortage crisis, why e-commerce has been an unexpected solution for B2B companies, and how organizations can leverage their tooling to survive and scale during times of market instability.
The state of labor shortage in Australia
Labor shortages in Australia began as a result of COVID-19. The shortage has affected a wide range of industries, such as hospitality, agriculture, healthcare, construction and more. Following the lockdown, overseas workers were prevented from entering the country, reducing the amount of temporary workers in the region.
The Australian government has attempted to incentivize local workers with benefits such as relocation allowances and increased wage. Despite this, things aren’t all doom and gloom. Unemployment levels are at 3.4%, which is a near 50-year low for the country.
Regardless, a shortage of labor can naturally cause a supply squeeze, and local businesses are seeking more efficient work processes. For B2B organizations in the region, e-commerce has proven to be a natural solution.
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ERP-integrated e-commerce as a solution to labor shortage
For ANZ wholesalers, manufacturers and distributors looking to keep customers happy while keeping internal processes as efficient as possible, ERP-integrated e-commerce is a great solution. There are many benefits to e-commerce for B2B organizations, including:
Increase in reach: Businesses with an online presence can cater to prospective customers across their region and beyond, opening up potential to scale.
Superior customer experiences: ERP-integrated e-commerce allows customers to browse products, place orders, and make payments online. It provides an efficient buying experience that forgoes the need for multiple stakeholders.
Reduced cost: Raised wages are a natural byproduct of labor shortages. Businesses across industries are feeling the impact of higher cost of operations. An ERP-integrated e-commerce solution can help reduce TCO (total cost of operations) significantly.
Access to customer insights: In the face of economic uncertainty, customer knowledge and the ability to leverage it is crucial for success. An online channel provides insights into the way your customers shop your catalog, creating new opportunities for upsell and cross-sell.
A more efficient supply chain: Choosing an integrated web store enables real-time inventory updates, automated order fulfillment, and more accurate shipping times. This helps establish a sense of trust between businesses and their customers.
Case Studies: Successful ERP-integrated e-commerce adoption in ANZ
Can e-commerce really transform results for B2B organizations in ANZ? Here’s a look at how this has worked with two companies in the region:
1. Food & Dairy Co
Food & Dairy Co are a 100% Australian, family-owned company. They are currently one of Sydney’s leading food and dairy distributors.
Their customer base, which majorly consists of local restaurants and cafes, placed orders after closing, which meant there would be a surge in buying within a three-hour window during the last hours of the day.
Customer service teams were strained, and resources were not being leveraged efficiently. After implanting Sana Commerce’s e-commerce platform, the company were able to drive results. There was 75% less calls to customer service, which meant their teams could focus on building more meaningful relationships with clients (instead of putting out fires), and 82% of their customers began ordering online.
In the case of Food & Dairy Co, a switch to e-commerce meant less strain on internal resources, and more efficient sales.
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2. Steel & Tube
Steel & Tube is paving the way for digital transformation in New Zealand’s steel industry with ERP-integrated e-commerce.
Here’s what Anthony Excell, E-commerce Manager at the organization, says about using Sana Commerce:
Our integrated solution provides a portal for our customers to gain access to our ERP system. They can gather data for themselves that they wouldn’t normally be able to do through a standard web store. Because customers no longer need to call or email to get updates, our new portal saves them, and us, time.
In the case of Steel & Tube, who belong in an industry where sales is traditionally conducted in person, an e-commerce channel was an innovative step forward. By saving time with internal teams, they were able to streamline processes and create a more efficient offering to customers.
Looking forward: How ANZ businesses can adapt
Though regional economic signs suggest otherwise, anxieties surrounding a global recession in Australia and New Zealand are rising. According to ANZ economists, strong population growth, a tight jobs market and a lift in nominal wages would support the economy, but a per capita recession was possible.
How can Australian and New Zealand B2B organizations ensure their strategy remains resilient for an unpredictable economic future?
By maximizing the large investment you’ve made in your ERP, integrated e-commerce can be a strategic choice amidst uncertain times. Integrated e-commerce help open up new markets and find new customers, leading to potential new streams of income. It can also help relieve your internal teams, an especially valuable result during a labor shortage.
How you can leverage your e-commerce channels amidst economic uncertainty?
