June 28, 2023
In the early stages of your franchise, legacy systems may well be a suitable option. But as your franchise grows, it won’t take long before they start to slow you down. A lot.
Persisting with these systems in the face of rapid expansion brings a number of complex challenges, all of which have the power to be fatal for your franchise.
Every second someone in your franchise spends on an unnecessarily manual task is a second wasted. Such inefficiencies will grind your franchise to a halt. Instead, automating repetitive tasks and other day-to-day activities will give every member of your franchise more time to focus on what matters — growing your business.
The result? Reduced productivity and stunted growth.
Traditional B2B buyers may have preferred to place their orders over the phone, but the new generation of younger buyers expect to complete all their procurement tasks online. Investing in digital processes and solutions is therefore crucial if you want to meet the demands of your customers, as well as your own procurement teams.
The result? Unhappy customers, unhappy franchisees and a limited digital footprint.
Without effective digital solutions in place, your franchise will be less able to track important metrics such as customer retention, seasonal trends and inventory health. Introducing dedicated reporting and analytics capabilities will help you uncover previously unseen insights across your entire franchise network.
The result? Poor decision making due to reduced visibility and inaccurate insights.
Failing to run all your orders through one central system can lead to an overly complex and underperforming supply chain, where each franchisee orders solely for themselves. Centralizing your orders means you can manage them in one place, improving visibility and reducing procurement/ delivery costs.
The result? A bloated supply chain and cost inefficiencies.
The more franchisees you add to your network, the harder it is to manage them all, and the more likely it is that they’ll each start doing things differently. While this may give your franchisees more autonomy, it reduces oversight, leading to discrepancies across your network of businesses.
The result? Inconsistent quality, branding and customer experiences.
Another downside of poor data management is that it limits your ability to customize your offering for different buyers, therefore making it harder to ‘sweeten the deal’ when making a sale. With better customer insights, you can provide targeted product lists, as well as time-sensitive price promotions and bulk orders.
The result? Generic, non-personalized products, offers and experiences.
If you can’t effectively communicate with your customers via their preferred digital channels, then you aren’t going to be able to provide adequate support when they need it most. All of your franchisees should have the tools and the training to provide quality customer service as standard.
The result? Underwhelming experiences and a reduction in customer loyalty.
While legacy systems will hold your franchise back, the right B2B eCommerce and eProcurement platform can streamline every aspect of your franchise, from procurement to fulfillment.
By embracing B2B commerce solutions, franchising can achieve streamlined supply chain management, consistent branding, efficient communication, data-driven decision-making, pricing control, and scalable growth. B2B commerce platforms help optimize operations and foster collaboration between franchisors and franchisees, resulting in a more efficient and successful franchise system.