Topic > B2B Supply Chain vs. B2C - 1788

Supply Chain B2B vs. B2CThe recent invention of the microprocessor has allowed businesses to evolve thanks to technological advances fostered by the invention of the computer, improvements in transportation and global communications, all dependent on the microprocessor. Of importance were the IT and voice and data communication systems; the lifeblood of many businesses today. The proliferation of computers in businesses and homes and the growth of the Internet and the World Wide Web eventually led to electronic commerce or e-Commerce. In simplest terms, e-commerce is the buying and selling of products and services electronically by using computers to send order and payment information over the Internet. E-commerce happens in many different forms; business to business (B2B), business to consumer (B2C), business to Government (B2G), and most recently consumer to consumer (C2C) using auction sites such as eBay. The form of e-commerce that most people are familiar with is probably business to consumer or B2C. B2C has grown in recent years and this growth is expected to continue in the future. Business to business or B2B e-commerce has existed for much longer in various forms and is still growing with the expansion of global business and global trade. Since e-commerce is the buying and selling of products and services, there must be a basic methodology of moving products from one business to another or from one business to the consumer. Traditional B2C is simple as the consumer goes to the store, buys the product and leaves with the product; but an online purchase becomes more difficult. B2B purchases of materials and products also seem simple on the surface, but can be quite complex. The method of moving materials and products has also evolved as technology has evolved and businesses have grown. This method of moving materials and products is now commonly known as supply chain. What is supply chain? The supply chain by definition is “the optimal flow of product from the manufacturing site through intermediate locations to the end-use site.” (Supply Chain, 2006) This definition, although simple, highlights two key elements of a supply chain. First, a supply chain must move product optimally from one point to another, leading to the conclusion that a supply chain must be optimized for efficiency. Second, a product can move through many intermediate locations from its initial starting point to its final destination. It can be assumed that each intermediate position must also be optimized in terms of efficiency to achieve total end-to-end optimization.