Supply Chain Differs on a B2C Site vs. B2B Site.

Essay by vandalonUniversity, Master'sA+, December 2005

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Supply Chain Management (SCM) is an approach that is focused on managing the entire process as products are transformed from raw materials into finished goods and then delivered to the customer. SCM is primarily concerned with three flows - product, information, and money. "The scope of SCM is extremely broad, involving multiple companies performing business functions. These functions include not only logistics, transportation, and warehousing, but also sourcing and procurement, manufacturing, materials handling, forecasting, order processing, inventory management, and customer service" (, 2005).

The broad goal of supply chain management is to create a seamless flow of products from cradle to grave with the fewest resources and the highest customer service possible. By working together, companies in a supply chain should be able to decrease costs of transportation, ordering, inventory, and storage and handling across the entire supply chain while improving the quality of service for each customer.

The major difference between B2B (Business to Business) and B2C (Business to Customer) in internet terms is the role of the B2B website.

B2B concerns itself primarily with supply chain management. These are portals that allow businesses to deal directly with their suppliers and distributors online, allowing electronic transfer of orders, invoicing and even payments. One of the major benefits now is that manufacturers and suppliers have access to a competitive, global market, via the Internet. According to Roger Blackwell, a business professor at Ohio State University, "Supply-chain management is all about having the right product in the right place, at the right price, at the right time, and in the right condition" (Blackwell, 2003). Hence, organizations are beginning to move from optimizing within the enterprise to optimizing the supply chain. As more and more organizations move towards a customer centric business model to improve their profitability, there is an increased...