Supply Chain

Essay by nfertt November 2008

download word file, 2 pages 1.0

This paper will explain the supply chain differences between a B2C (business to consumer) site and a B2B (business to business) site. In order to effectively accomplish this task, the three terms - supply chain, B2B and B2C will be explained and defined.

Supply chain is defined as "the part of an industry value chain that precedes a particular strategic business unit. Supply chain includes the network of suppliers, transportation firms, and brokers that combine to provide a material or service to the strategic business unit" (Schneider, 2004).

Business to consumer (B2C) site is defined as "transactions conducted between shoppers and businesses on the Web" (Schneider, 2004). Business to business site (B2B) is defined as "transactions conducted between businesses on the Web" (Schneider, 2004).

Now that the terms have been defined, the supply chains will be explained. The B2C supply chain for a product is rather easy.

The consumer is shopping for a good or service, enters the website, chooses the product and makes the purchase, if desired. For example a small business wants to purchase office supplies. The office manager does a price comparison between Staples and Office Depot to see who offers a better deal. Once the determination is made on who has the better price, the office manager places the order without researching where the components were manufactured.

The B2B (business to business) supply chain for a product or service includes every step necessary by every component in the value chain needed to design the product, produce the product, promote the product or service, market the good or service, deliver the good or service and support the individual elements of that good or service. For example Toyota's supply chain will include all the activities embarked on by each supplier; like the engine manufacturer...