In today's world of high technology and the opportunity to access information across the globe many organizations are looking toward the internet to conduct their business transactions. The ability to reach a larger customer audience and other businesses, allows an organization to remain competitive and save costs. With the introduction of e-commerce, which is the buying and selling of products and services via the internet, e-business has broken off into two different categories business-to-business and business to consumers. This paper will explain how the supply chain differs on a business to consumer site and a business-to-business site.
B2BAccording to Haig (2001), "B2B, or more specifically Business-to-Business e-commerce, is the umbrella term used to refer to transactions between businesses conducted online, and the business networks and supply chains that make these transactions possible (p. 1). As technology continues to progress and grow, more businesses are discovering that the internet is the easiest way for interacting with consumers, both internally and externally.
The link between the businesses in a business-to-business association can take on various forms such as buyer to seller and supplier to seller.
According to TopXML.com (nd), "B2B, allows for communication which is more frequent (real-time), rapid (real-time), and accurate (automated)" (p. 1). Businesses are now able to communicate to other businesses across the globe using different platforms, different languages, and different types of currency. In the past businesses conducted transactions through phone, fax, mail, and in person. This created delays and some barriers due to time, language, and currency differences.
An example of a B2B business is Bradley's Metal Works, located in Cheney, WA. This machine shop takes blueprints from other companies such as Pearsons, located in Spokane, WA and creates a product for them in which the company can then assemble into a larger product for customer purchase.