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Submitted by briana1971 on June 5, 2006
Category: Business
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Supply Chain Comparison – B2B Versus B2C
The supply chain encompasses all activities associated with the flow and transformation of goods from the raw materials stage through to the end user. An example of a simplified supply chain utilizing my own company, Philips Medical Systems, would likely progress as follows:
1. A customer (hospital) requests a medical printer to accompany their digital imaging equipment.
2. Philips, which doesn’t produce the printer, receives the request and only acts as a third party vendor, orders the printer from the manufacturer.
3. The manufacturer of the printer orders raw materials from the respective suppliers in order to produce the printer.
This is a very simple example of the supply chain. The supply chain not only involves the steps listed above, but the transportation companies as well.
B2B
B2B, or business to business, is a category of electronic commerce. B2B is considered transactions conducted between businesses. B2B eCommerce occurs when companies are buying from and selling to each other online. B2B eCommerce 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.
B2C
B2C, business to consumer, is another category of eCommerce. B2C are the transactions between shoppers and businesses on the Web. Examples of this type of eCommerce would be the purchase of an item from Walmart.com. According to Wikipedia, Business-to-consumer electronic commerce is a form of electronic commerce in which products or services are sold from a firm to a consumer (www.wikipedia.com). An example of the services provided would be the purchase of airline tickets from Travelocity.
B2B versus B2C supply chain
The greatest difference in the B2B / B2C supply chains are the number of channels or chains. The B2C has a considerable larger amount of...
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