B2B Website and a B2C Website, Essay Example

What processes make a Business-to-Consumer (B2C) site compared to a Business-to-Business (B2B) different?  The answer to this inquiry will be discussed in this paper. The concept of ‘supply chain’ will be defined, as will the terminology of B2B and B2C websites.  This is given in order to provide, to a greater extent, a solid understanding of the differences between the distinct models. Finally, the difference between the ways in which a supply chain functions on a B2C website as compared to a B2B website will be explained and specifics will be offered.

What is a supply chain? The meaning of supply chain changes depending upon the source; however, the core group principle remains the same. According to BNET (2008), a supply chain is “The network of manufacturers, wholesalers, distributors, and retailers, who turn raw materials into finished goods and services and deliver them to consumers.” Supply chains are an intrinsic constituent of business. With special relationship sustainment between the organizations throughout the chain, benefits such as competitive advantage, reduced overall costs, and loyal client bases can be experienced.

The innovation of the Internet has changed and increased the supply chain functioning of businesses. The Internet provides companies to guide conventional supply chain activities via the World Wide Web; however, companies can likewise enhance their supply chain performance by conducting business through the Web portals. UPS is one model of a company utilizing the Internet to enhance its supply chain performance. UPS practices business on the Internet to provide its customers the ability to track their packages, which gives consumers with a personal satisfaction with their decision to do business with UPS, and creates a faithful customer foundation. (Chopra & Van Maugham, 2000)

Both business-to-consumer and business-to-business sites use the Internet to their benefit when carrying out their business operations.  To begin the discussion of the various ways each business platform comports e-business, a brief overview of each model is offered.

Business-to-consumer, or B2C, e-commerce concentrates primarily on luring Web consumers to their site and convincing them to become customers and buyers as often as manageable. Acknowledging the aforesaid argument, one can describe a conclusion that B2C is dealings that are expressed between consumers and business on the Web. Some examples of B2C e-commerce services are auction markets such as eBay, online stores such as Amazon, and online services such as Expedia, HotJobs, and Monster.com. (Walsh, 2000)

Business-to-business, or B2B, e-commerce is dealings, which are carried out between businesses on the Web, otherwise recognized as doing the functions of a business enterprise electronically. B2B sites usually aim at business owners, managers, and other effective decision makers. Some models of B2B e-commerce services are computing device sales and service sites such as Microsoft, large distribution sites like Costco, and office supply stores such as Staples. (Schneider, 2004)

What are the main differences between the styles of the supply chain on a B2C site versus a B2B site? The leading issue between B2B and B2C sites is that B2B sites focus chiefly on supply chain management while B2C sites focus more on marketing goods to the end user. B2B sites are portal sites through which business deal straightaway with their suppliers and distributors through the online portal. This provides for electronic transfer of orders, invoicing and receipt of payments through various electronic means (online payment using bank accounts, Paypal, or wire transfers). B2C sites, however, are intermediary portals through which clients are linked to suppliers. This allows for target sales from businesses to consumers. (A-K, 2001)

From the selective information provided previous, the supply chain course on the two types of sites might seem alike. Indeed, some points of similarity in the supply chains of B2B sites and B2C sites do exist. The two categories B2C and B2B are merely a user’s view of e-commerce sites. In reality, a B2C site is just the last point of a business-to-business-to-consumer, or B2B2C, supply chain.  However, the two models are different in the number of channels a product has to go through with before reaching the end user. The supply chain in a B2B site has a smaller number of big channels while the supply chain of a B2C site has a greater amount of small-scale channels. (Walsh, 2000)

Some models of the course of these supply chains are required in order to explicate these divergences further. A case of the supply chain stream on a B2B site would begin with Compuserve needing to order the parts necessary to manufacture a computer. The purchaser from Compuserve could go to the website of the components supplier, select the appropriate type and quantity of pieces, then the supplier would render the parts straightaway to Compuserve.

Distinguishing the supply chain flow between a B2B site and B2C site can be obscure. It is offered that the above report can be used as a guide in explicating the divergences. The term ‘supply chain’ was determined, following which, the terms B2B and B2C were further defined. In Conclusion, the differences in the supply chain flow models were stated and examples presented to further the interpretation of the two models.