Comparison of B2B and B2C Companies

1062 Words Jun 18th, 2007 5 Pages
Comparison of B2B and B2C Companies This report is a supply chain comparison between two companies in which one is a business-to-business (B2B) model company and the other is a business-to-consumers (B2C) model company. The comparison will be between the companies Wal-Mart and Grainger. Wal-Mart is a well-known conglomerate known around the world that is in the retail business that seeks to sell products to consumers at a significantly reduced discount compared to its rivals. Grainger sells supplies to different companies through the company 's own website.
First, let 's start by distinguish between what a B2B company is and what a B2C company is. The definition of a business-to-business is when businesses sell products or services
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Grainger supplies its business to a variety of businesses but sells primarily to industrial and commercial maintenance departments, contractors, and government customers. The company sells more 800,000 products so Grainger relies heavily on the use of more than 1,200 suppliers to fill this need. One interesting fact is that nearly 40% of their purchases are from random purchases from customers that rarely buy the same product more than once a year (Grainger 2006 Fact Book). So how does Grainger fulfill these needs and keep customers happy? Grainger operates in the United States by having 416 branches, 10 distribution centers, and its own website. What separates Grainger from competition is the fact that Grainger offers the best combination of product selection, local availability, and speed of delivery. In fact, 99 percent of customers receive their orders the very next day. Grainger recently launched a catalog in 2006 that contains more than 115,000 products. That is a staggering number of products available for customers and a lot of information for Grainger to be accountable for. Grainger began offering customers the availability of ordering online in 1996. By implementing electronic ordering options, profit margins are significantly higher than the previous mode of ordering which was by phone or branch orders (Grainger 2006 Fact Book).

Reference
Schneider, G. (2004) Electronic
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