The Difference Between B2b and B2c Supply Chains

The difference between B2B and B2C Supply Chains

Merton M. Hunkin

University of Phoenix

eBusiness - EBUS/400

Facilitator: David Rubenstein

April 23, 2007

Introduction

Is there is a difference between the supply chains on a Business to consumer (B2C) and a Business to Business (B2B)? If so, what are they? In the era of technology, business has stretched a long way as well as advanced immensely. It used to be that brick and mortar was the only method to start as well as operate a company. On the other hand, the internet has altered all of that. Now companies can make use of technology to get in touch with consumers as well as other companies worldwide. This has set off an enormous rush in the global economy. In 2003, Business-to-Business (B2B) trade tilted the scales at $1.41 Trillion. This is in contrast to Business-to-Consumer (B2C) that was $90.1 Billion. All of these purchases must be transported and delivered, and that is where companies supply chains appears. Opposed to common principle, the supply chains of B2B and B2C are not the same, they equally have distinctive characteristics. This paper will describe the expression supply chain. After that, it will describe the expressions B2B and B2C. As a final point, it will clarify how the supply chain varies on a B2C site measured up to a B2B site (Johnson, 2005).

Supply Chain

The section of a business value chain that heads a specific strategic business component is frequently describes as a supply chain. A businesses supply chain for a specific merchandise or service contains all the actions taken on by every forerunner in the value chain to plan, create, endorse, advertise, transport, as well as support each separate constituent of that product or service. For instance, the supply chain of an auto company consists of all actions assumed by all part providers, consisting of engine makers, steel fabricators, glass makers, wiring harness assemblers, along with thousands of others (Schneider, 2004).

In other words, a supply chain is a system of seller, distributors, delivery service, storage services, along with contractors that take part in the manufacturing, distribution, as well as selling of a product to the customer. The supply chain is characteristically made up of several businesses that organize activities to situate themselves separately from the competition. A supply chain has three main components:

1. Supply - centers on the crude materials distributed to manufacturing, consisting of how, when, as well as from what location.

2. Manufacturing - concentrates on changing these raw materials into complete products.

3. Distribution - centers on making certain these goods get to the customers by means of a coordinated system of distributors, warehouses, as well as vendors.

Although regularly pertained to manufacturing along with customer products, a supply chain can furthermore be utilized to demonstrate how a number of procedures supply to one another. The supply chain description in this sense can be related to Internet technology, finance, as well as many other industries (Kietzman, 2007).

Business-to-Business (B2B)

According to IndiaWebDevelopers.com (2006), B2B is classified as trading of prearranged messages together with other business associates over classified networks or Internet to make as well as alter business interactions. B2B e-commerce is businesses buying from as well as selling to one another online. Nevertheless, there is more to it than buying. It has progressed to include supply chain management as additional businesses contract out sections of their supply chain to their trading associates. B2B applications take aim at making better as well as shortening the different business procedures inside a business in addition to raising effectiveness of transactions between businesses that have business relationships. The business utilize B2B in order to attain quicker as well as mistake-free transactions, be in charge of along with sustain maximum stock, well-organized product restock etc.

Business to Consumers (B2C)

On the other hand, B2C normally refers to on-line dealing as well as auctions, such as on-line stock trading markets, on-line auction for computers and other goods. B2C e-commerce refers to the rising commerce model where corporations/establishments along with customers interrelate by electronic means or digitally in some method. One of the best illustrations of B2C e-commerce is Amazon.com, an online bookstore that opened its site in 1995. This kind of e-Commerce application has developed throughout the past few years particularly after the extensive employment of the Internet as well as the enhancement of the services presented over the Internet. The answer can sustain efficient advertising of products as well as services to all types