Supply Chain Differences: B2B .vs. B2C
The best method of characterizing the differences in the supply chain is by defining the components of which it is comprised: B2B and B2C. Both terms are used simultaneously when the discussion revolves around the product or service transactions. The following definitions of each group will identify their divisions, and their purpose, within different e-business websites such as, what the site is offering, supplying or the preferred vendor.
Supply chain management, whether in a traditional or E-commerce environment, involves distributing products, goods, and services from point of manufacture to the delivery of the final product. For supply chain management to work in a B2B or in a B2C environment, the focus must be on provider customers with the utmost in quality services. Many organizations are looking toward the internet to conduct their business transactions. The ability to reach a larger customer audience and other businesses, allows an organization to remain competitive and save costs.
E-business has broken off into two different categories business-to-business and business to consumers. With e-businesses, the internet becomes the hub for all business activities. There are several distinct benefits to doing business over the internet, such as:
• The ability to reach larger populations
• The ability to reach larger entities
• Lower overhead costs
• Distinct marketing advantages
B2B: Business to Business
According to Schneider (2004), “Transactions conducted between businesses on the Web, [are] often called business- to- business or b2b”. B2B sales account for the largest total dollar volume of e-commerce, with the online sales reaching into...