SkillNet’s Marketplace Transformation for a Leading US Tire Distributor

Introduction: The client, recognized as the largest tire distributor in the US, is on a dedicated mission to empower tire dealers through the creation of a meticulously curated B2B marketplace platform. This transformative platform aspires to unite a select group of suppliers with a captive customer audience, fostering exceptional experiences and delivering optimal value for every dollar spent. The overarching objective is to unite tire dealers nationwide, providing them with the collective buying power of a national enterprise and thereby reshaping the dynamics of the tire industry.

Business Challenges: In their pursuit of growth, the client encountered various challenges with their existing marketplace solution.

• Limitations of the Existing Marketplace Solution: The existing marketplace solution was a significant roadblock to scalable growth for both customers and suppliers. The system proved limiting in its functionalities of an engaging catalog and frictionless purchase journey. It struggled to accommodate the increasing demands and expectations of the customer base, as well as the growing number of suppliers seeking to partner with the company. The system was completely unaware of any transactions occurring on the punchout catalog. Customers consistently experienced pricing conflicts, both in what was displayed and what was ultimately charged. This limitation has, in turn, hindered the organization’s ability to expand and serve a larger audience effectively.
• Lack of Personalization and Information Transparency: A further challenge arises from the lack of personalization within the current business model. Customers today expect tailored experiences that resonate with their preferences and needs. The absence of such personalization has resulted in lower adoption rates and, as a consequence, a reduction in Average Order Values (AOVs). The failure to provide price transparency and clear information on shipping has compounded these challenges, leading to customer dissatisfaction and impacting the bottom line.
• Drawbacks of the Rebate-based Revenue Model: Additionally, the business has been grappling with the repercussions of a rebate-based revenue model. This approach has led to delayed revenue recognition, thereby affecting the company’s financial stability. It has also incurred high overhead costs due to the complexity of managing rebate programs. Perhaps most significantly, it has negatively impacted the overall customer experience, as the process of securing rebates can be convoluted and frustrating for the customers.

Addressing these intertwined challenges was imperative for the company’s future success. The client engaged with SkillNet to help design a B2B marketplace solution, focusing on personalization, enhancing transparency, and optimizing processes to support the company’s adoption of alternative revenue models. With the new solution, the client aims to pave the way for scalable growth and a more satisfying customer experience while simultaneously streamlining its operations and financial processes.

Solution: Recognizing the imperative need to address these intertwined challenges, the client sought the expertise of SkillNet. The solution designed by Team SkillNet focused on the adoption of Mirakl B2B marketplace platform.
SkillNet also worked with the client to successfully implement new processes when the client made the transition from the traditional rebate-based revenue model to a more efficient commissions-based approach. This led to the improvement in the overall customer experience by streamlining the purchasing process.
The successful modernization of the Marketplace platform introduced a range of strategic solutions to effectively address the client’s challenges. Firstly, it has made a significant transition from the traditional rebate-based revenue model to a more efficient commissions-based approach. The solution also simplified the supplier onboarding process on marketplace, making it faster and more straightforward. This, in turn, broadened the variety of offerings available to customers and supports the company’s growth objectives.
The solution also ensured a strong focus on elevating the customer experience. This involved enriching product content with detailed descriptions, offering personalized shopping experiences tailored to individual preferences, and ensuring transparency in pricing and shipping information. These improvements were designed to heighten customer satisfaction, drive higher adoption rates, and ultimately increase Average Order Values (AOVs).
The partnership has enabled the client to position itself for sustainable growth and success in the digital marketplace.

Results & Benefits: The implementation of SkillNet’s solution yielded significant results and benefits for the client:

• Smooth Transition to Commissions-based Revenue Model: The shift from a rebate-based to a commissions-based approach facilitated real-time revenue recognition on all orders, streamlining financial operations.
• Adoption of a Modern B2B Marketplace Platform: The Mirakl platform streamlined supplier onboarding, enabling the client to successfully onboard 16 new suppliers during the initial phase, with the capability to accommodate an unlimited number of future suppliers. This enhancement significantly broadened the variety of offerings available to customers, supporting the company’s growth objectives.
• Successful Engagement with a Major U.S. Brand: Actively onboarding a major U.S. brand with over 900 retail locations into the program showcased the effectiveness of the solutions in attracting and partnering with prominent brands.
• Seamless and Automated Supplier Payments with Mirakl Payout: Serving as the System of Record (SOR), Mirakl ensured seamless and automated supplier payments, alleviating significant stress from the finance department and ensuring an efficient revenue recognition process.

In conclusion, SkillNet’s B2B marketplace solution not only positioned the client for sustainable growth and success in the digital marketplace but also elevated the overall customer and supplier experiences while emphasizing personalization, transparency, and operational efficiency.

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Connect with us! SkillNet provides consulting and technology services to companies that want to digitally transform their businesses. We can help optimize your traditional (monolithic) legacy platforms, or implement, migrate to modern headless or composable commerce solutions to enable the flexibility and agility required to rapidly respond to sudden shifts in consumer behavior and meet your customers wherever they are.