Business-2-Business E-Commerce:Selling & Buying In Private E-Markets.Presented by :Nouman Saleem
Basic B2B Concepts. Business-to- Business E-commerce also known as Eb2b or just B2B. It refer to transaction b/w business conducted electronically over theInternet, Intranet, Extranet or private Network. Such transaction may take place b/w a business and its supply chainmember. as well as b/w a business its customer and any other business. In this a business refer to any organization private or public for profitor non profit.
The major characteristics of B2B is that companies attempt toelectronically automate trading or communication and collaborationprocess in order to improve them.B2B commerce can also be done without the internet.B2B key business drives on the internet is to provide secureplatform in private and public B2B E-marketplace the need ofcollaboration b/w supplier and buyers the ability to save money ,reduce delay and improve collaboration and the emergence of effectivefor intra- and in inter organization integration.
The Basic Types Of B2B Transaction & Activities. The number of seller and buyers and the form of participation used inB2B determine the basic B2B transaction types. Sell-Side: one seller to many buyers. Buy-Side: One buyer to many seller. Exchange: many seller to many buyers. Supply chain improvement & collaborative Commerce:Activities otherthan buying or selling among business partner for example supply chainimprovement, communicating, Collaborating and Sharing ofInformation for joint design planning and so on……….
The Basic Types Of B2B E-marketplace AndServices.
1: One-To-Many & Many-To-One Private E-marketplace. In One-To-Many and Many-To-Many market one company does eitherall of the selling or all of the Buying. Because EC is focused on a single company buying or selling need inthese transaction this type of EC is referred to as Company-Centric EC. Company-centric marketplace the individual sell-side or Buy-sidecompany has complete control over who participates in the selling orbuying transaction and the supporting information system. This type of transaction are essentially private.
2: Intermediaries:One-To-Many or Many-To-One ECactivities are conducted without the help of intermediaries howeverwhen it comes to auction , Aggregating buyers or complex transactionan intermediary frequently is used. 3: Many-To-Many : Exchanges:In Many-To-ManyE-marketplace many buyers and many seller meets electronically for thepurpose of trading with one another . There are different types of suchE-marketplace which are also known as Exchange , tradingcommunities. Exchange are usually owned and run by the third or by aConsortium.
4:Supply Chain Activities & Collaborative Commerce. B2B transaction are segments in the supply chain therefore B2Binitiatives need to be examined in light of other supply chain activitiessuch as manufacturing , procurement of raw materials and shipmentsand logistics. its usually involves communication and collaboration . Collaborative commerce is communication , design, planning andinformation sharing among business partners to qualify as collaborativecommerce the activities that are shared must represent far more justfinancial transaction
Business 2 Business Characteristics. Similar to the classical story of the blind man trying todescribe an Elephant .B2B can be describe in a variety ofways depending on which characteristics is the focus. Herewe examine various qualities by which B2B transaction canbe characteristics.
Parties To The TransactionB2B commerce can be conducted directly between customerand a manufacture or it can be conducted via an onlineintermediary. The intermediary is an online third party thatbrokers the transaction b/w the buyer and seller it may bevirtual intermediary or a click-and-mortar intermediary.
Direction Of Trade. B2b marketplace may be classified as Vertical or Horizontalmarketplaces: Vertical marketplaces: Are those that deal with one industry orindustry segments examples include marketplaces specializing inelectronics , cars , hospital supplies, steel or chemicals etc………. Horizontal marketplace: Are those that concentrate on a serviceor a product that is used in all type of industries such as office supplies,pcs, or travel services.
Types Of Transaction B2B transaction are basically are of two types: Spot Buying: The purchasing of goods and services as they areneeded usually at prevailing market prices which are determinedynamically by supply and demand examples are Stock exchange andcommodity exchange (oil , sugarcane , corn etc…) Strategic Sourcing: purchasing involves long term contract thatusually are based on private negotiations between sellers and buyers.
Types Of Material Trades. Two Types of material and supplies are trade in B2B : Direct Material: are used in making the product such as in a car orpaper in a a book. The direct material are that things that usually arescheduled and planned for they are not a shelf items and they arepurchase in a large quantities after extensive negotiation andcontracting. Indirect Material: are such items such as office supplies or lightbulbs that support production they are usually used in maintenance,repaire and operations (MRO) activities.
Virtual Services Industries In B2B. Travel & Hospitality services:Many large organization arrange theirelectronically through corporate travel agent to further reduce costcompanies can make special arrangements that enable employees to planand boo their own trip online. Track point:It enable travel manager as well as security and riskprofessionals to pinpoint a travelers whereabouts at any time. Travel Alert:It is information service that provide details about specifictravel destination.
Real estate:Commercially real estate transaction can be larger andcomplex and web can not be able to completely replace existing humanagent. Instead the web can help businesses to find the right propertiescompare properties and assist in negotiations . Online Stock trading:Some corporations are large stock investor onlinetrading services are very attractive to institutional investor because feesfor online trading are very low and flat regarding the trading cost. Other Online Services:Consulting services, law firms, healthorganization , and other sell knowledge and special services online .
Creates new sales (purchase) opportunities. Eliminates paper and reduce administrative costs. Expedites processing and reduce cycle costs. Lowers search costs and time for buyer to find product and vendor. Increase productivity of employees dealing with buying and /or selling. Reduce errors and improves quality of services. Makes product configurations easier. Reduce marketing and sales cost (for seller). Enables customized online catalogs with different prices for differentcustomers. Increase opportunities for collaboration. Provides for efficient customer services.