What is B2B?
B2B is the short
form that is used for Business to Business. Most of the electronic commerce
today is of this type. It includes the Inter Organizational System (IOS)
transactions and electronic market transactions between organizations.
B2B implies that both the seller and the buyers are business corporations;
while business-to-business electronic commerce implies that the buyers
are individual consumers. Business to business EC covers a broad spectrum
of application that enables an enterprise or business to form electronic
relationship with their distributors, resellers, suppliers and other
partners.
______________________________________________________________________________
______________________________________________________________________________
By using B2B EC, business can reengineer their supply chain and partnership.
B2B will offer access to following types of information.
· Product
– price, sales history etc.
· Customers – sales history and forecast.
· Suppliers - Product line and lead-time, sales terms and conditions.
· Product process – capacity, product plan.
· Competitors – market share, product offerings.
· Sales and marketing – promotions.
· Supply chain process – quality, delivery time etc.
The following are
the ways in the world that are being adopted with the help of B2B EC.
Electronic Marketing
B2B platform can
be used to sell the company’s product and services to business
customers on the Internet. This model can be called seller oriented
marketing because customers visit the web site that the supplier has
prepared. Certain group’s items, such as industrial equipment are
purchased only by businesses.
Procurement Management
From the purchasing
company’s point of view, B2B is a medium of facilitating procurement
management such as reduced prices and reduced cycle time. To implement
B2B from the procurement management point of view the buyer-oriented
market place can be used where the buyer announces the RFQ to the potential
suppliers for competitive purchasing. To the suppliers, participating
to the customers oriented marketplace and winning the bid is the major
concern.
Electronic intermediaries
Individual consumers
and business purchases a group of items such as books, stationery and
personal computers, in such cases the consumers and business buyers
can share the intermediary. Certain items such as industrial equipments
and parts are purchases only by business. Since the purchasing party
is a business who has to deal with many suppliers and intermediaries,
an integrated and tailored buyer’s directory linked suppliers and
intermediaries is needed.
Just in time
JIT delivery of
parts to manufacturing buyers is crucial to realize JIT manufacturing.
Direct marketing requires an internal JIT manufacturing system; the
JIT delivery and advanced confirmation of supplier’s inventory
are essential elements for B2B.
Electronic Data
Interchange
EDI is the electronic
exchange of specially formatted standard business documents such as
orders, bills approval of credit, shipping details and confirmation
sent between business partners. The EDI translator is necessary to convert
the proprietary data into standard format. Internet based EDI is an
important technology for B2B EC.
Advantages of
B2B
Ø Its is
cost reduction technique for the company so as to overcome mediator
Ø With advancement in technology B2B can be done with the help
of Electronic commerce.
Ø With the help of online auction the buyer of industrial goods
can get the product at a cheap deal, as there are many competitors in
an online auction.
Ø With E-Com electronic funds transfer-using EDI can be done
between to organizations.
Ø B2B helps in lowering the cost for selling and marketing.
Ø It also shortens the selling cycle.
Ø The most important advantage of B2B is to have JIT just in
time delivery, the company can have the track of good as to which place
it has reached with the help of electronic commerce.
Transactions conducted
through the internet between one business to another is called Business
2 Business. This type of business is carried out only through the internet.
This business covers all types of organizations, right from auctioneers
to business solution providers. This also includes business-business
shopping and sales as well as provision of various services. With the
advancement of technology with each and everyday, business transactions
are carried out more easily and effectively as well as in a faster and
efficient way.
Paper has been replaced
by technology which makes the process easier and faster. In the United
States of America alone, business to business has generated revenue
of more than 7 trillion. Speed and Efficiency is very important in today’s
competitive world, no matter what kind of businesses organizations conduct,
and business to business has proven to be a big success because of the
speed and efficiency. Businesses act with more speed and efficiency
satisfying their customers which has proved to be an integral part of
today’s B2B business. Moreover the growing resources of online
services are helping business grow faster in every possible business
area.
Some of the popular
digital services offered are the news services, direct mail marketing,
HR development and training. Due to the variations in the markets and
business it is hard to estimate an accurate market size figure, but
there’s absolutely no doubt that B2B is growing very rapidly and
is the future trend of conducting business. In every possible way e-business
should mask the value of the products sold to its customers. The biggest
advantage which this kind of business over the other conventional businesses
is the Just In Time delivery. The delivery of the products can be traced
very easily and effectively thus satisfying both the Client and the
Vendor. Prompt delivery satisfies not only the business but also ensures
instant profits, thus making the transaction a successful one.
______________________________________________________________________________
______________________________________________________________________________
