Comparison of Supply Chain for B2b Sites and B2c Sites

Comparison of Supply Chain for B2B Sites and B2C Sites

Jamie Kear

EBUS 400

June 10, 2006

There are several types of e-business but for the most part the different e-business sites on the internet can be categorized into 2 different categories: Business to Business and Business to Commercial or Consumer. There are many differences between these 2 categories and many similarities that we will discuss in this paper. We will be concentrating on the differences in the supply chains between business-to-business web sites and business to commercial web sites.

A supply chain in the business world is simply a network in which raw material moves from supplier to a manufacturer and finally to the consumer. Typically a supply chain involves a supplier, manufacturer, distributor and a consumer. With an e-business whether a distributor is in the supply chain really depends on which of the 2 categories the business belongs. In a business-to-business setting, businesses order from other businesses therefore cutting out the need for the distributor. With most business to consumer web sites such as Wal-Mart, an e-tailor; the supply chain will have many channels for manufacturers and consumers. Raw materials suppliers are not going to be included in an e-tailors supply chain.

A business-to-business web site involves the relations of 2 or more commercial partners with no service to end consumers. There are several different means to communicate via the web in a commercial setting. EDI or Electronic Data Interchange is the most widely used today and is considered the standard format for exchanging business data. Essentially EDI is the method used to transfer data from one company to another electronically. Typically a purchase order is sent to a company ordering supplies from a trading partner via EDI utilizing one of many EDI software systems. The data is received, a confirmation is sent from the company receiving the data indicating receipt of the order, the order is filled and a bill is generated. Many other types of data can be exchanged using EDI such as reports, comments, and feedback between trading partners.

In a B2B supply chain the business is both the supplier and the consumer therefore a B2B supply chain has to integrate 2 separate chains. One chain concentrates