Supply Chain B2b Vs B2c
Essay Preview: Supply Chain B2b Vs B2c
Report this essay
Businesses that exist primarily on the internet are known as e-businesses, electronic businesses. e-Businesses can all be classified under one general heading, marketplaces. Though e-businesses vary in scope and methods, they can be categorized basically as business-to-consumer (B2C) or a business-to-business (B2B). A business-to-business model involves transactions between one business and another business. A business-to-consumer model involves transactions between a business and individual consumers.
Business-to-business is all about product and materials procurement. The supply chain is the vehicle through which business-to-business and all ecommerce is ultimately achieved. 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. The business buyer is advanced, and will understand your product or service. They need to buy products or services to help their company stay profitable, competitive, and successful. In the traditional supply chain the material suppliers are at one end of the supply chain. They are connected to manufacturers and distributors, which are in turn connected to a retailer and the end customer. The order and promotion process, which involves customers, retailers, distributors and manufacturers, occurs through much time-consuming paperwork. By the time the customers needs are sent through all the members of the supply chain, the production cycle ends up serving suppliers every bit as much as customers.
Business-to-consumer is when companies try to create a direct relationship with consumers without the involvement of intermediaries such as distributors, wholesalers and dealers. Business-to-consumer specifically caters to a group or target consumer in order to expose, sell, market goods or services to the public. Business-to-consumer is all about the consumer being able to browse a catalog, place an order, make payment and track the status of the order. The consumer uses a web browser to interact with a web server application hosted by the business. In business-to-consumer there is only one supply chain. Distribution is more extensive in a business-to-consumer model than in a business-to-business model because compared to business-to-business you are dealing with many more consumers in business-to-consumer. Business-to-consumer sites tend to be more transitionally-oriented than do B2B sites. Both types have transactions, but consumers are usually online to transact or purchase right away; B2B users TEND to be more investigative and know it may take longer to get the complete details of the answers they seek. Many business sites drive “those interested in learning more,” to register and give their contact information in exchange for getting the information they seek. This allows for human intervention, when applicable, which can really make an online business transaction very enjoyable and begin to build a long-term business relationship. Business-to-consumer also uses traditional offline methods along with the integration of online tools such as interactive websites, email marketing, online communities.
Business-to-consumer concerns itself with selling to the end user; examples of business-to- consumer would be Amazon.com, ebay.com, Walmart.com, Borders.com, basically anything offering a retail product to the public in the form of a virtual store. The B2C buyer is usually looking for the best price and will research the competition prior to