Key Features & Advantages of B2B

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.

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