Supply chain optimization and e-business in modern organizations

¶ … 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.

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.

The mode of connection is also different for B2B and B2C. In case of B2B, the business official is connected to one partner or several trusted partners, because the negotiation is done with static list of trading partners. Virtual Private Technology (VPN) is often incorporated by B2B people, for secure access for avoiding replication of data and applications outside firewall. B2C adopts the commonly employed mode of internet connections, with minimum electronic deterrence.

CONCLUSION

The highlighted differences between the characteristic applications of B2B and B2C includes,

Different types of purchases and authorizations.

Unique contracts, terms, and conditions for different business customers.

Participation in customer's supply chain.

Variety of customer sizes, demands, and requirements.

The differences are not just on the ground of level of trade or mode of purchases but the targeted market i.e. consumers and evaluation of their utilities, the level of preferences also vary, the advertising campaign vary accordingly. The priorities and practices for both mode of e-businesses are dissimilar, except for that both the ventures desires high profitability and growth in terms of production and service.