The Supply Chain of B2b and B2c

The Supply Chain of B2B and B2C

Technology has increased the ease of getting information to customers. Consumers now have access to products and services whenever or wherever they desire. These customers can range from internal employees to other businesses. The technology that is being used is the Internet. E-business is the means of getting products and services to the customers, through the use of the Internet. Business that continue to incorporate the Internet into there business will continue to stay ahead of other businesses that chose not to use this tool. The Internet has become a vital part of economic growth.

E-business solutions are categorized as either business-to-consumer (B2C) or business-to-business (B2B). Business-to-business transactions are transactions that are conducted between one company to another company. Business-to-consumer is a model where products or services are bought and sold over the Internet for personal use. (Project Business)

B2C supply chains are sale directly to the end user. Several types of companies use this supply chain. Some of these types of companies are: retail stores, online auction web sites, online travel, stock trading markets, and online bookstores. By moving to a B2C solution, companies are able to leverage their automated supply processes. The need to operate storefronts is slowly becoming a part of the past. E-commerce has had an impact on how economic value is assigned to goods and services. The target market for companies has grown from single areas to global markets. Technology is replacing stores, land, labor, and capital as the key driver. (Project Business) Companies are able to pass the savings onto the customers through discounts and lower prices. According to Seeth Seethram and Reno Bosetti, the Internet is changing the way business transactions are conducted. Manufacturers, distributors, and suppliers are learning to maximize profits and potential through the Internet. They believe that the image of a linear supply channel is becoming obsolete. Today’s e-commerce businesses operate in a seamless and transparent multidimensional network. The Internet could ultimately replace conventional intermediaries (warehouses, wholesalers, and distributors. (Srmarketing)

E-commerce offers consumers the freedom to conduct business in their homes. These services offer convenience, flexibility and are less expensive for the businesses to operate. One of the disadvantages to conducting personal business on line is the inability to look physically at the goods that are being purchased. Several consumers enjoy going to store to make their purchases. Consumers are relying on the seller to provide good products. This drawback is seen especially is online auction transactions.

The challenge for companies, who are turning to the Internet for B2C sales, must focus on their competition. These companies must find new ways to gain a competitive advantage. They do not have that friendly associate there to offer a smile and assistance to customers. However, some companies offer online assistance through instant messaging or chat services.

B2C services are also seen in companies that offer service, such as the banking industry or stock trading. These services give the consumers instance information and the information is easily updated. Customers have access to there account anywhere and at anytime.

For businesses that are conducting business with other companies, the Internet has help expand the ease of doing business. The world is now viewed as huge global market. More companies are able to do business internationally as well as locally. Due to the web, the cost of doing business international has decreased. In order for companies to remain profitable, it is a necessity to conduct B2B transactions through the web. Figures from Forrester, Gartner, IDC, Jupiter and others have made the predicttion that worldwide business-to-business (B2B) e-commerce will exceed $13 trillion by the year 2003 (Shannon)

B2B transactions play a critical role in today's digital economy. E-Markets are capable of maintaining critical supply chain applications and can be counted on the provide the support that is necessary for cross enterprise collaboration. (Project Business) This allows companies to synchronize activities like production planning, the development of new product designs, procurement, transportation planning, and marketing. (B2B

E-Markets)

Companies