How Supply and Demand Differs

The internet has changed the way people buy, sell, hire, and organize business activities more than any other technology has in the history of business. Although the negotiated exchange of goods or services has been practiced in traditional ways for thousands of years, electronic commerce (e-commerce) is the application of new technologies. The most common sources for electronic commerce are (B2B) business to business and (B2C) business to consumer. This paper will discuss both forms of commerce and how the supply chain differs between the two entities.

Our textbook defines B2C or business-to-consumer as businesses that sell products or services to individual consumers (Schneider, 2004). The focus of a B2C is more on attracting consumers and changing them to retainable customers. The goal is to change a shopper into an aggressive buyer. The course of information through a typical B2C is through the internet. For example, Macy’s.com will be considered a B2C business to consumer organization.

Transactions conducted between businesses on the web, are called business-to-business (or B2B). Although the goal of B2B marketing is to convert prospects into customers, the process is longer and more involved. A B2B company needs to focus on relationship building and communication using marketing activities that generate leads that can be nurtured during the sales cycle. Business-to-business is all about product and materials procurement.

The supply chain is the vehicle through which business-to-business and all e-commerce is ultimately achieved (Schneider, 2005). The internet and electronic business are changing the history of supply chains, and altering how consumers learn about, select, purchase, and use products and services. The result has been the surfacing of new business-to-business supply chains that are consumer-focused rather than product-focused.

There are several ways that the supply chain differs on a B2B site versus a B2C site. The first and most obvious difference is in cost efficiency: B2B websites allows transportation companies of all sizes to exchange cargo documents electronically over the Internet. They enable associates that run the supply chain to streamline document handling without the monetary and time investment required by the traditional document delivery systems. By using this form of e-commerce, companies can reduce costs, improve data accuracy, streamline business processes and enhance customer service.

B2B web sites can provide a universal, self-service system for customers. Businesses can order any service and access the information they need to conduct business with transportation companies exclusively online. This e-commerce function is taking companies a substantial step forward by providing customers with a faster and easier way to do business with them.

Marketing techniques also show differences between B2B and