B 2 C E Commerce example essay topic

B 2 B vv. B 2 C Supply Chains Randy JohnsonEBUS 400 Professor CatladoJuly 25, 2005 Introduction In 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 (B 2 B) commerce tipped the scales at $1.41 Trillion. This is in comparison to Business to Consumer (B 2 C) that was $90.1 Billion (Narain e, 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 B 2 B and B 2 C are not the same both have unique qualities. This paper will define the term supply chain. Then it will define the terms B 2 B and B 2 C. Finally, it will explain how the supply chain differs on a B 2 C site compared to a B 2 B site and provide examples.

Supply Chain According to learn that. com a supply chain is the series of channels a product takes from its initial production to reach it's 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. B 2 B When people hear B 2 B 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 B 2 B e Commerce occurs when companies are buying from and selling to one and other online. B 2 B e Commerce 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 (Var on, E., 2001).

B 2 C B 2 C 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 B 2 C 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. B 2 C e Commerce 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). B 2 B vs. B 2 C Supply Chain The B 2 B and B 2 C 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 B 2 B there are less total channels however they are greater in size when to compared to the greater amount of smaller channels with B 2 C. (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 let's 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 comes with technology and that is integration, B 2 B needs to be integrated to their business partners software for smooth resupply, billing, etc. This is an aspect that the B 2 C does not have to worry about since the customer will return to them out of loyalty versus convenience. Once again we will use the examples above once Mars Auto signs a deal with Firestone the systems will have to communicate so Firestone knows how many vehicles are going to need tires delivered for the next week and so forth. They will also have to account for the tires received and charge the company accordingly, with integration billing and payments can be transferred back and forth.

In the case of booking the flight and hotel, the B 2 C does not have to be integrated due to the fact that this might be a one and only transaction with this customer (CIO Decisions, 2005) Conclusion In conclusion, as demonstrated not only has technology changed the relation ship between a business and it customer, it has also changed the relation of business to business. The supply chains of both have become faster moving yet still as challenging and as different as ever. The shorter and larger scale b 2 b versus the smaller and ever longer b 2 c. These both are still extremely successful in creating a more global economy and with improvements should provide continuing success.

Bibliography

Naraine, R., 2003, B 2 C Goes From Rags to Riches, retrieved from the World Wide Web on: web Market, 2004, B 2 B Market Trends, retrieved from the World Wide Web on: web That, 2004, Definition of Supply Chain, retrieved from the World Wide Web on: web E.
August 2001, The ABCs of B 2 B, retrieved from the World Wide Web on: web August, 2001, The ABC's of B 2 C, retrieved from the World Wide Web on: web Profs, 2005, What differentiates B 2 C supply chain from B 2 B? retrieved from the World Wide Web on: web question.
asp? qst ID = 7770 CIO Decisions, 2005, Executive Guide B 2 B Integration, retrieved from the World Wide Web on: web g ci 1067719, 00.