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Supply Chain Paper

1303 words - 6 pages

IntroductionThe internet environment has created many opportunities for businesses to reduce costs, expand their markets, increase customer satisfaction, improve efficiency, and help partnership with others who are part of the supply chain. Companies must become experts in eCommerce today in order to take advantage of the opportunities and compete in a global economy. Business-to-Business (B2B) and Business-to-Consumer (B2C) commerce are the exchanges companies use to stay competitive. These exchanges are unique in their function and create distinct supply chain differences. This paper will discuss B2B and B2C commerce and how the supply chain differs on a B2B site compared to a B2C site.B2C ...view middle of the document...

Online services seek to leverage the power of the internet. Advantages to the consumer are lower prices, wider choice selection, better quality information, and convenience. Capabilities of the B2C exchange are real-time, instant communication among participants in the supply chain. Global access into new markets on a larger scale because of the immediate exchange of communication the ability to customize the merchandize to the need of the customer possibilities is increased and purchase availability is offered around the clock. The functionalities of the B2C site are that de-intermediation is an option and consolidation and convergence take place to facilitate a large market ad, which is easier to place orders and to fulfill them.Before the B2C site becomes a reality, organizational change must begin. Employees may resist the change to convert to virtual marketing. Transitioning from a traditional store to an eMarket cannot become successful unless B2C sites' businesses redesign existing processes and streamline to suit new ways of doing business. B2C sites must integrate business systems with partners in the supply chain then match compatible technology to the business needs in order to get the most out of the exchange.The supply chain differs in a B2C site from a B2B site in the following ways. The B2C site must appeal to the prospective purchaser but the actual purchasing of the items is what determines whether the site is a success or not. For example, Travelocity.com may have an appealing site but if the prices are not as competitive as those found on Expedia.com are then the site does not successfully accomplish the final objective, ticket sales to the mass. This is different from a B2B because competition does not take place in that same way. Once the goal sales are pursued, a B2C site must build customer loyalty in order to sustain. The ability to personalize and develop applications that are user-friendly brings customers back to repeat the pleasant experience. Businesses like Dell have developed this reputation and coupled with a best in class product the company is going to be around for a long time. The B2C site must also increase focus on investing in the supply chain technologies so that there is an increase in fulfillment of customer orders. B2C supply chain reaches endless customers who prospect the sites in a way that B2B exchanges do not.B2B exchanges operate through supply chain management. Online portals act as conduits to allow orders, invoicing and payments throughout the supply chain. Wholesalers, distributors, manufacturers all do business electronically through the B2B sites. B2B sites buy and sell information via the internet through private networks shared among the partners. eMarkets host supply chain applications and support collaboration among industries in order to synchronize the exchange of data. Activities such as procurement, marketing, transportation planning, product design, and production planning are...

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