Supply Chain Is a Network

¶ … supply chain is a network of facilities and distribution options that performs the functions of procurement of materials; transformation of these material into intermediate and finished products; and distribution of these finished products to customers' (Ganeshan & Harrison, Introduction to Supply Chain Management)

It can be also termed as, 'the supply chain represents the flow of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Many organizations are looking to supply chain optimization as a means of gaining significant competitive advantages. The Internal Process Perspective of the Balanced Scorecard often contains performance measures pertaining to supply chain performance' (Business Week Report).

Supply Chain represents the flow of finances, material, and information for the production of finished goods. The business organizations working towards the optimization of Supply Chain for gaining significant edge over the competitors.

Different phase processes of the Supply Chain include conversion, assembling / disassembling and placements. The processing is done in different locations, for producing finished good from primary factors via distribution.

E-Business

The ongoing technological progress has evolved new methods of forging trade and business deals, such new technique in which business is handled and negotiated through means of satellite communication i.e. emails; internet is termed as E-Business.

Any process that a business organization conducts over a computer mediated network. Business organizations include any for profit, governmental, non-profit entity. Their processes include production-, customer-, and internal or management-focused business processes' (United States Census Bureau).

Internet, Intranet, Cellular communication is different modes of doing E-Business.

The two different types of E-Business includes,

Business to Consumer (B2C)

It is considered to be the most widely practiced form of e-business. B2C is the exchange of information, services, products between business and consumer over the internet.

The advancement in internet further enhances and strengthens the mode of sharing product information, giving new shapes to B2C.

Businesses are mainly internet based, and offices and warehousing are borne depending upon the extent of electronic success.

Example includes amazon.com, ebay.com.

Business to Business (B2B)

B2B is another mode of e-business which allows use of low cost sales channels for the distribution of goods and services; it influences the ongoing corporate purchasing habits.

B2B is considered to be heavily invested avenue.

B2B allows businesses to deal directly with their suppliers and distributors online. Wholesalers, distributors and manufacturers fall in this category.

Example includes, car manufacturing company dealing its products with dealers, assemblers or another company rather than consumers.

Ethics is another important element which need to be kept in account while practicing B2B and/or B2C, in both modes of e-business there is major influence of moral values i.e. trust, responsibility and commitment, that is imparted to the consumer or business. It's very important from ethical and legal point-of-view that written words; about the profile of company, and production and service standards are factual. Ethics related to marketing, advertising has to be followed in good will and with true spirit.

If the ethical issues are sidelined and not safeguarded there is strong possibility that the trade secrets and intellectual property might get revealed and public.

DIFFERENCES: SUPPLY CHAIN

B2C emphasizes on customer transactions, where as B2B focuses on businesses as consumer. The difference of approach creates the needs for the adoption of different applications in both the types.

B2C concerns itself with selling to the end user, where as B2B site deals primarily with other local, junior or small businesses, not the general public.

The type of order is another difference, repeat and standing orders are common requirement of B2B. In case of B2B the customers are likely to order significant numbers of parts, and their requirement is much expected and periodic and in some of the cases continuous. In case of B2C the product is much time and trend dependent, the expectations and results are the factors of need, fashion and style. However B2B is dependent upon the factor of demand-supply.

The type and mode of payment varies accordingly. B2B are linked with the forms of payments such as lines of credit and open orders. In case of B2C, the usage of credit card and demand draft is much frequent.

A criterion for search function is another difference; in case of B2B browsing of product catalog isn't much essential. The company may benefit from a configurator and bid function rather than browsing and searching an online catalog.