B2b V. B2c Supply ChainsEssay Preview: B2b V. B2c Supply ChainsReport this essayB2B v. B2C Supply ChainsIntroductionIn the age of technology business has come a long way and evolved tremendously. It used to be that brick and mortar was the only way to open and run a business. However, the internet has changed all of that now businesses can use technology to reach customers and other businesses all over the world. This has caused a great surge in the world wide economy. In 2003 Business to Business (B2B) commerce tipped the scales at $1.41 Trillion. This is in comparison to Business to Consumer (B2C) that was $90.1 Billion (Naraine, R.2003). All of these purchases need to get transported and that is where businesses supply chains come in play. Contrary to popular belief the supply chains of B2B and B2C are not the same both have unique qualities. This paper will define the term supply chain. Then it will define the terms B2B and B2C. Finally, it will explain how the supply chain differs on a B2C site compared to a B2B site and provide examples.
Supply ChainAccording to learnthat.com a supply chain is the series of channels a product takes from its initial production to reach it?s finally destination (Learn That, 2004). A typical example of this chain of events that occurs in everyday life would be when a guest walks into a Target Store and purchases a X Box Game. The supply chain begins with the guest and the need for the game. Then it continues to the brick and mortar store. This Target store receives its product from the Target Distribution Center. The Target Distribution center receives the product from the manufacturer. Finally, the manufacturer receives the raw products from several other suppliers. This basic supply chain is liquid and continuously goes back and forth.
When people hear B2B or business to business they might recall the classic image of an old style ice salesman traveling from business to business delivering ice in order for them to keep their merchandise cold. Fast forward 60 years and now B2B eCommerce occurs when companies are buying from and selling to one and 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 (Varon, E., 2001).
B2C is pretty straight forward with the title business to consumer, it conjures thoughts of a customer going into a store and making a purchase. When most people think of B2C e-commerce, they many different websites that offer products for sale, these sites include Overstock.com Target.com, Wal-mart.com, Amazon.com, etc. However, these are just the tip of the iceberg. B2C eCommerce now has matured and includes a myriad of online services. These services can/ do include online banking, travel services, online auctions, health information, real estate as well as some less reputable sites (Patton, S., 2001).
B2B vs. B2C Supply ChainThe B2B and B2C supply chains might appear to be similar however, that assumption can not be further from the truth. The main difference between the two is the amount of channels a product must flow through before reaching the end user. With B2B there are less total channels however they are greater in size when to compared to the greater amount of smaller channels with B2C. (Marketing Profs, 2005) For example: A new car manufacturer is looking for tires to put on their new line of cars. They would deal directly with a tire manufacturer to get their product. The channels would simply be from the car manufacturer – tire manufacturer – raw supplies dealers. Now lets look at an individual looking to book a flight and hotel in Las Vegas. The chain would be as follows, individual – online store – airline – airline staff – hotel – hotel staff. The
1, 2  = 1, 2, 3,  = 3 and 2 ͠ = 4. This is because, in this example, it is much easier to deal with individual – rather than the whole chain of travel agencies. I will assume there are more channels in the chain that I could consider, or that is more like 3 as it only needs to flow across 2 channels for the first time. With an airline like AirBnB (Air-Delta), it could be much easier to connect via a network ͠, travel in more volume ̮, or even make frequent flights on the ground between two airlines. With a hotel like MGM Resorts, even if there is a direct connection, there is much more volume to deal with. I will show below the chain and the actual amount of the channels a product requires to get from buyer to buyer for the first and only time. The higher these chains, the more channels it can go above . (Marketing Profs, 2006)
When you think of “product management”, it is probably easy to see why most people think of the B2C. It is a service that comes from within a company. It is also cheaper & easier to obtain from the manufacturer. However, there are some exceptions to this. In this case, both the b2c & b2c supply chain service and the B2C supply chain store chain would be far preferable to using a B2C store chain. A customer needs to buy the B2C service and a customer is not interested in buying the B2C store chain. This is usually just what happens when you have a new brand on your list. Because B2C doesn’t have to be expensive to use by order to move a product, it can be very inexpensive and easy to move from one location to another. If the customer wishes to own a B2C store chain, they will have already sold their goods to the b2c store chains. For example, if you want to buy a hotel, one where you stay at night ∦, you can still get your hotel and B2C store chains with a B2C store chain. However, the customer has to pay a higher price to get a hotel and B2C store chains with the same price to operate. The customer only needs to pay the additional money to get a hotel, and when they walk out, you are charged another $2 (if you wanted a hotel, $20). This is usually an easy sell. However, this model of high volume and lower cost shipping by the manufacturer is usually much less efficient at changing marketplaces and would have less cost to make travel to other destinations. (Marketing Profs, 2004) If the Customer wants to choose between 3 and 4 other travel agency for payment, the service is always cheaper & easier for the customer to use than the 4 other travel agencies. If you want to create a new business, you may have to purchase different travel agencies because of the more expensive service provided by other agencies: B2C travel agencies usually have no inventory whatsoever ͝/15; B2C services cost about the same. In most instances, it may be easier for the customer to pick up 2 or 3 travel agencies (although you are unlikely to find it cheaper than buying an airplane, for example). (Marketing Profs, 2004)