Business to business, popularly known as B to B or B2B is a common term used in the modern business. It refers to transactions that exist between businesses such as one involving a manufacturer and wholesaler, or a wholesaler and a retailer. In essence, it refers to the form of business that is conducted between companies as opposed to transactions between a company and individual consumers. B2B embraces use of technology to fulfill their marketing needs.  Unlike in the past where brick and mortar was the only way to open and run businesses, most firms today has embraced use of internet to reach to their customers all over the world (Laudon, Traver, & Laudon, 1994).  Consequently, most firms today have embraced B2B opposed to B2C in efforts to reduce costs and efficiency in their work.

The technological advances and increased use of the internet has brought about the issue of B2N e-commerce. B2B e-commerce, also known as e-biz is a more evolved version of commerce in the modern business world. It refers to a type of e-commerce that involves electronic exchange of business documents among businesses for the purpose of conducting commerce. This form of commerce has been evolving over the years and has significant impact on how business entities exchange electronic documents in support of purchasing goods and services. It should be noted that, B2B e-commerce is mostly used for contract manufacturing, global trade compliance, customs declarations, global trade compliance, order management and supply chain logistics (Laudon, Traver, & Laudon, 1994).  It is a platform that is known to also been beneficial in enhancing communications among partners as well as improving purchasing experience from business to business.

It is essential to point out that B2B e-commerce can be broken down into different categories. One of the most notable categories is the company websites. Over the years, most companies have strived to reach to other companies and their employees specifically. A company website can serve as the entrance to an exclusive extranet for customers or registered site users or as an intranet for internal use only. It should be noted that companies can also sell directly from their websites or e-tailing to other businesses (Laudon, Traver, & Laudon, 1994).  Some of these organizations have embraced use of software to enhance sales and communication between different firms.

Product supply and procurement exchanges are another fundamental aspect of B2B e-commerce.  Most organizations are known to have e-procurement sites that mainly focus in a specified niche market. A company purchasing agent can shop for supplies from vendors, request proposals and even make bids for purchases at specific prices. These B2B websites enable the exchange of product supplies and procurement. In addition, some companies have also embraced brokering sites that serves as an intermediary between the producers and consumers of these products.

Supply chain is another important consideration in the B2B e-commerce.  This refers to the series of channels that any product can take from its original production to reach its final destination. As aforementioned, most of B2B organizations have embraced use of internet to reduce cost of product supply and enhance convenience with which consumers get their products.  Suppliers using the Internet to market their goods and services can sell world-wide. With the Internet’s greater transparency regarding pricing, suppliers have lost some of the strategic levers that allowed them to cultivate preferred accounts with higher margins (Laudon, Traver, & Laudon, 1994). In essence, B2B e-commerce ensures that consumers can get products directly from the companies’ websites. Members of supply chains can quickly and reliably find the specific information they need to complete an exchange of goods or services, and receive rapid payment.

References

Laudon, K., Traver, C., & Laudon, J. (1994). Information technology and society. Belmont, Calif.: Wadsworth Pub. Co.

 
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