Different types of B2B interaction

1. TYPES OF
B2B INTERACTION
PRESENTED BY,
JINITHA MERIN

2. What is E-Business ?
•E-business (electronic business) is the conduct of
business processes on the Internet.
•These electronic business processes include buying
and selling products, supplies and services,
servicing customers, processing payments,
managing production control, collaborating
with business partners, sharing information, etc.

3. E-business & E-commerce
•E-business: the transformation of key
business processes through the use of internet
technologies.
•E-commerce: is the electronic communication
and exchanges between suppliers and customers.

4. Types of E-Business
•Business to Consumer (B2C)
•Business to Business (B2B)
•Consumer to Consumer (C2C)
•Peer to Peer (P2P)
•Mobile commerce

5. Business to Business
•The transactions between one business and the
other.
•The B2B web sites are not for the public, it is
only available to business partners or suppliers
and companies.
•Manufacturer and wholesaler.
•Its is cost reduction technique for the
company so as to overcome mediator.

6. Roles that parties play in
B2B e-commerce
1. Buyers
Customers such as individuals and
businesses that purchase goods and ser-vices
from suppliers.
In the context of e-business, these
buyers use electronic pro-curement systems.
.

7. 2. Suppliers
Businesses that market and sell goods
or services to buyers directly or indirectly
through sales and distribution channels.
These suppliers use electronic
procurements systems and marketplaces to sell
their goods.
.

8. 3. Marketplaces
Third-party organizations that connect
multiple buyers with multiple suppliers in an
electronic market.
.

9. 4. Service providers
Third-party organizations that provide
buyers, sellers, and marketplaces with services
to facilitate commerce such as payment, credit,
and logistics.
.

10. Types of B2B interaction
•All models for business-to-business
interaction are not the same.
•B2B business models are migrating from
long-term one-to-one relationships to rapidly
changing and fluid many-to-many
relationships.

11. Types of B2B interaction
1. Direct Partnership.
2. Multiparty Procurement
3. Agents and Distributors
4. Exchanges, Auctions, and Digital
Transaction Hubs

12. 1. Direct Partnership
• simplest and most immediate form of
supply chain relationship
• suppliers and buyers are strategic to each
other’s needs
• Each business inherently and intimately
knows the other’s business needs
• require a large amount of trust
• very difficult to scale to any large number
of partners

13. 2. Multiparty Procurement
• working with suppliers is through a
multiple-party system using electronic
procurement methods.
• more hands-off relationship with suppliers
without having to become intimately tied to
its suppliers’ businesses.
• they involve long-term commitments and
investments on behalf of both parties.
• Products are frequently supplied from
multiple supplier locations to a single
customer location.

14. 3. Agents and Distributors
•An intermediator will be there between the
supplier and buyer during transaction of
products.
•Two primary categories of supplier channel:
Stocked - carry inventory and are responsible for making
sure enough product is carried on-hand to meet buyer demand
Stockless - provide value-add to the sales process without
carrying inventory.

15. 4. Exchanges, Auctions, and Digital
Transaction Hubs
•A “marketplace,” is a place which provides a
single location where multiple buyers and
sellers can accumulate their economic
interests.
•It help buyers locate sellers, and vice versa.
•Public market-places are open to any carrier
or shipper that wishes to participate.
•private mar-ketplaces are restricted solely to
member providers and users.
•digital transaction hubs like exchanges and
auctions are focused on reducing the cost of
integration between buyers and sellers.

16. Thank you