Supply Chain Strategies: B2B Versus Term Paper

Also, B2B's larger unit transactions mean that more may be loss if a competitor is alienated. Alienating a competitor with whom one has deep and long-standing relationships can be dangerous in B2B, since there are often more complex and lengthy selling processes involving many players in B2B. This is why B2B sales are so focused on maintaining key accounts, often with long-negotiated contracts.

Multiple purchasing influences in an ever-shifting market can mean alienating a valuable customer, and losing a key buyer can spell the end to the business. (Marketingprofs.com, 2005) In B2B there must be more precise records of large shipping orders (such as shipping documents and funds orders) that add to costs. (Davidson, 2005)

Integration within and along the value chain can still be more easily maintained between individuals B2B, as all wish to maximize value. Despite competition, sharing sales forecasts in is more likely in B2B, in a way that is not feasible between businesses in the more immediately cutthroat world of B2C. (Davidson, 2005) B2B e-commerce is one way that the value chain has become particularly condensed in recent years, bringing together many international buyers in one area, and shortening the selling process that still requires less advertising than B2C, although the added 'bidding' advantage to see the different prices that are offered can favor buyers rather than sellers. However, Global Health Exchange, a medical supply company, founded in 2000 by Johnson & Johnson, Abbott Labs, Medtronic, GE Medsystems, and Baxter Healthcare, has flourished online in its purveying of medical supplies to businesses, because it reduces costs for the buying entities by shipping in bulk of a large, necessary, yet relatively anonymous product. (Davidson, 2005)

In contrast, B2C entities must conduct transactions with many more potential, but smaller customers, thus making it more difficult to please and know how to market to such individuals, but less dangerous to alienate the end of the supply chain.Value in B2C is determined by end-consumer perception, and thus there is a focus on brand management when dealing with a larger number of generally private consumers, in these series of small transactions. The selling process, usually of short duration, rather than through the sustained contracts of B2C requires efficient supply channel management to ensure inventory is kept low.

Examples of newly successful B2C transactions that have successfully managed their supply chain inventory include the former B2B star Dell Computers. Dell initially eliminated 'middlepersons' in selling computers to stores and offices. Now it has made things even more efficient, selling customers online, as well as to businesses. Dell, by offering good customer service of inexpensive and user-friendly, though not innovative products, has created a niche for itself in the PC market, of outsourcing suppliers and effectively managing a supply chain. Dell originally co-opted a great deal of the B2B market, selling to offices as well as customers and again stressing its positive customer service base. The most surprising and effective example, perhaps of B2C e-commerce has been eBay, which gives an Internet portal to eager buyers and sellers, again eliminating a costly middleman. eBay shows B2C commerce at its finest, where price and market segmentation is purely demand-driven by the desires of sellers to sell, and buyers to buy.

Works Cited

B2B versus B2C Marketing." (2005) Marketingprofs.com. http://www.marketingprofs.com/ea/qst_question.asp?qstid=1141

Davidson, Elizabeth. (2005) "Supply Chain Management." Fall 2005. Chapter 6. College of Business Administration. Retrieved 3 Nov 2005 at http://davidson.cba.hawaii.edu/BUS619/bus619c06f05.ppt.....