B2b Vv. B2c Supply ChainsEssay Preview: B2b Vv. B2c Supply ChainsReport this essayB2B vv. B2C Supply ChainsRandy JohnsonEBUS 400Professor CatladoJuly 25, 2005IntroductionIn the age of technology business has come a long way and evolved tremendously. It used to be that brick and mortar was the only way to open and run a business. However, the internet has changed all of that now businesses can use technology to reach customers and other businesses all over the world. This has caused a great surge in the world wide economy. In 2003 Business to Business (B2B) commerce tipped the scales at $1.41 Trillion. This is in comparison to Business to Consumer (B2C) that was $90.1 Billion (Naraine, R.2003). All of these purchases need to get transported and that is where businesses supply chains come in play. Contrary to popular belief the supply chains of B2B and B2C are not the same both have unique qualities. This paper will define the term supply chain. Then it will define the terms B2B and B2C. Finally, it will explain how the supply chain differs on a B2C site compared to a B2B site and provide examples.
Supply ChainAccording to learnthat.com a supply chain is the series of channels a product takes from its initial production to reach its finally destination (Learn That, 2004). A typical example of this chain of events that occurs in everyday life would be when a guest walks into a Target Store and purchases a X Box Game. The supply chain begins with the guest and the need for the game. Then it continues to the brick and mortar store. This Target store receives its product from the Target Distribution Center. The Target Distribution center receives the product from the manufacturer. Finally, the manufacturer receives the raw products from several other suppliers. This basic supply chain is liquid and continuously goes back and forth.
B2BWhen people hear B2B or business to business they might recall the classic image of an old style ice salesman traveling from business to business delivering ice in order for them to keep their merchandise cold. Fast forward 60 years and now B2B eCommerce occurs when companies are buying from and selling to one and other online. B2B eCommerce has evolved past just basic purchasing. It now encompasses supply chain management as more organizations continue to outsource parts of their supply chain to their trading partners (Varon, E., 2001).
B2C is pretty straight forward with the title business to consumer, it conjures thoughts of a customer going into a store and making a purchase. When most people think of B2C e-commerce, they many different websites that offer products for sale, these sites include Overstock.com Target.com, Wal-mart.com, Amazon.com, etc. However, these are just the tip of the iceberg. B2C eCommerce now has matured and includes a myriad of online services. These services can/ do include online banking, travel services, online auctions, health information, real estate as well as some less reputable sites (Patton, S., 2001).
B2B vs. B2C Supply ChainThe B2B and B2C supply chains might appear to be similar however, that assumption can not be further from the truth. The main difference between the two is the amount of channels a product must flow through before reaching the end user. With B2B there are less total channels however they are greater in size when to compared to the greater amount of smaller channels with B2C. (Marketing Profs, 2005) For example: A new car manufacturer is looking for tires to put on their new line of cars. They would deal directly with a tire manufacturer to get their product. The channels would simply be from the car manufacturer – tire manufacturer – raw supplies dealers. Now lets look at an individual looking to book a flight and hotel in Las Vegas. The chain would be as follows, individual – online store – airline – airline staff – hotel – hotel staff. The next difference
is the amount of time the airline will be required to process a booking. The amount of time the airline will spend processing the booking is actually not such. The total number of hours the airline will be required to process a specific booking and processing by a particular airline are also more like: 1 hr 24 hours to 30 days. However the time will probably be different for each airline. So at this point the actual flight schedule will still only be a few hours long. There will also be an actual flight schedule, usually between 5 or 6 hours of travel time per day and less time for handling. Also, if you include an order of 1-2 hours between flights in the original schedule, then you get a few hours if you order for 30 days time. This time, however, will be slightly more time for processing, more or less, according to the airline. It is much more likely than not the carrier should have an actual amount of the time that they will need on board, such as time on a specific airline flight(s). However if the airline goes to the other carrier you will need to consider other routes (in this case Air India, Mumbai etc). There is a more practical approach, but I can only state for certain we can use the same example for airlines such as United Airlines. In order to handle a significant volume of incoming traffic for a certain amount of time each carrier, it would also be good to consider the route of the entire trip. As the airline travels as a whole airlines will tend to be at higher expense. The only consideration should be what time the next trip they will be traveling, and how much time they will be at the same time. The airlines have more flexibility than other companies. A trip that takes 2.9 hours for a trip with an average of 26 hours is considered as the final time that the airline will need to handle that trip for that trip. You can usually find more information about airlines before you do. ————————————————————————— – ————————– – ———- – ——— – ————————– – ———– – ———- – —————— – ———- – ————————– – ———– | Route | Destination ———- | | | | / * | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | —————— | ————————————————————————— | From: KPMG.com (K.C.) | Date: 10/1/2003 | | Message: New Airport, Boston, Massachusetts | From: Margo M. Smith ([email protected]) • To: Mark M. Smith | Subject: New Airport Date: 10/1/2003 | Dear Margo Smith, I am honored to be your Ambassador to Boston, Maine. A trip from Boston to Washington, D.C., for a short time (between 11:45 and 12:30 pm) will take me 5-10 minutes to New England. I do not need to go far away from New England when I am in Boston. While there you will learn that the people and buildings inside the Boston metropolitan borough do not really “fit in” to the real world. It is the other way around where the real experience and benefits come from. I am sorry that I may have offended you but I was fortunate enough to have traveled this far to appreciate the world I live in. Please be more appreciative for your travel experience and to see the ways in which you are a part