Supply Chain Mgmt in B2B and B2C Environment

1451 Words Jan 14th, 2006 6 Pages
Supply Chain Management in B2B and B2C Environments

Supply chain management, whether in a traditional or E-commerce environment, involves distributing products, goods and services from point of manufacture to the delivery of the final product. Supply chain management, whether related to B2B or B2C retailers involves manufacturing, storage, distribution and delivery of products and services to consumers and other businesses. B2B supply chain management is slightly more complex than B2C transactions, as B2B wholesalers, distributors and manufacturers are typically working with larger corporate entities. For supply chain management to work in a B2B or in a B2C environment, the focus must be on provider customers with the utmost in
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B2B e-commerce enterprises are currently larger, and expected to grow more rapidly than B2C enterprises (Malmberg, 2003). B2B and B2C are similar in the way they change the supply chain function. Manufacturers in the chain traditionally focused their attention on brand and product management; when dealing with B2B and B2Cs however, manufacturers must focus on building customer relationships, managing web-based information, and end-customer sales initiation (Malmberg, 2003). Likewise, in a traditional commercial role the distributor often focuses on inventory financing and reseller management, but in an e-commerce situation the distributor is also concerned with end-customer sales initiation, building customer relationships and assembly-to order processes (Malmberg, 203). Additionally the distributor must also provide an "ala carte menu of fulfillment services and handle Vendor Managed Inventory using more collaborative systems" (Malmberg, 2003). The reseller in a B2B or B2C relationship must work on setting up virtual stores, selling inventory in a virtual environment and again providing web-based information to consumers (Malmberg, 2003). In these ways B2B and B2C supply chain management are similar. The supply chain for B2B involves web-processing from the initial point of sale to the final shipment and payment collection, as it does for a B2C. Shipment tracking and transaction management