Topic > Supply Chain Management in B2B and B2C Environments - 1434

Supply Chain Management in B2B and B2C Environments Supply chain management, whether in a traditional or e-commerce environment, involves the distribution of products, goods and services from the point of production to the delivery of the final product. Supply chain management, whether related to B2B or B2C retailers, involves the production, storage, distribution and delivery of products and services to consumers and other businesses. B2B supply chain management is slightly more complex than B2C transactions, as B2B wholesalers, distributors, and manufacturers generally work with larger corporate entities. For supply chain management to work in a B2B or B2C environment, the focus must be on supplier customers with the highest quality of services. The specific differences and similarities between supply chain management for B2B and B2C are explored in more detail below. According to Stephen David, CIO and head of B2B at Procter and Gamble, building a successful supply chain depends on "manufacturers' ability to develop a successful 'consumer-driven organizational system'" (Reese, 2004). successful business chain entrepreneur, the primary market for today's manufacturers is declining, so "B2B supply chain management should not focus on consumer goods, but rather on new categories" (Reese, 2004). of the supply chain in B2B must focus on the “fragmented market”, composed of very different types of consumers. B2B customers have very specific needs and what works best in this environment is a “consumer-driven supply network that operates on time”. real, is data-driven, and delivers products on demand" (Reese, 2004). The supply chain for B2C sites must involve monitoring the number of visits and the level of traffic reaching the website, more than in a B2B (Patton, 2004). According to Jupiter research, by 2006 Business to Consumer e-commerce organizations could spend up to $1 billion analyzing Web sites and accounting for consumer spending (Patton, 2004) in the B2C environment. Operating in real time is important for supply chain management in B2C environments, because it allows manufacturers to “fine-tune transactions in real time,” which are typically required of large retailers (Reese, 2004). B2B differs from B2C in some respects, such as its reliance on other supply routes such as product catalogues. The largest market in the United States for B2B supply chain operations provides strategic resources such as: capital goods, direct materials and strategic services, followed closely by the commodity market including: utilities, transportation and direct materials (Kerns, Bruce 2000).