BUSINESS TO BUSINESS COMMUNICATION : BUSINESS TO BUSINESS COMMUNICATION SUBMITTED BY- SUKRATI PATHAK I.T. (08) CONTENTS : CONTENTS INTRODUCTION
SUPPLY CHAIN MANAGEMENT
SOME POWERFUL TERMS IN B2B WORLD
CONCLUSION INTRODUCTION : INTRODUCTION Business-to-business (B2B) describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer.
The U.S. Commerce Department reports that B2B ecommerce accounts for about 80 percent to 90 percent of total e-commerce. Slide 4: Business- to- business commerce includes a broad range of intercompany transactions , including wholesale trade as well as company purchases of services, resources, technology, manufactured parts and components, and capital equipment.
For Example- TradeKey.com Company IT Adoption : Company IT Adoption B-to-B Online Trade Forecast : B-to-B Online Trade Forecast ADVATAGES OF B2B : ADVATAGES OF B2B Expose sellers in one marketplace to all potential buyers.
Create a hub for development projects, market feedback, and customer collaboration.
Reduce time to market.
Provide expansive catalogs of products and services. Slide 8: Increase manufacturing efficiency, and reduce overhead of inventories.
Streamline purchasing operations.
Reduce cycle times, improve transaction flows, and manage parts inventories. Online Trade Forecast: Top Five Industries : Online Trade Forecast: Top Five Industries INVENTORY MANAGEMENT : INVENTORY MANAGEMENT Inventory management is primarily about specifying the size and placement of stocked goods.
The primary objective to determine/control stock levels within the physical distribution & to minimize stock holding and handling costs. The need of inventory managemet : The need of inventory managemet Time - The time lags present in the supply chain, from supplier to user at every stage, requires that you maintain certain amounts of inventory to use in this "lead time.“
Uncertainty - Inventories are maintained as buffers to meet uncertainties in demand, supply and movements of goods. Slide 12: Economies of scale - Ideal condition of "one unit at a time at a place where a user needs it, when he needs it" principle tends to incur lots of costs in terms of logistics. So bulk buying, movement and storing brings in economies of scale, thus inventory. SUPPLY CHAIN MANAGEMENT : SUPPLY CHAIN MANAGEMENT B2B marketplace is an integral part of any supply chain system. A supply chain system is being defined as movement of product or services from supplier/manufacturer to other manufacturer/supplier and a typical supply chain system components are businesses/organizations, people, information, activities, technology and resources. Slide 14: Extraction of raw materials.
Production e.g. component construction, assembly and merging.
Storage and movement to remote locations.
Distribution to retailers and customers . Slide 15: Supply Chain Structure ELECTRONIC DATA INTERCHANGE : ELECTRONIC DATA INTERCHANGE Electronic Data Interchange (EDI) is an inter-company, application-to-application communication of data in standard format for business transactions without human intervention. EDI FLOW : Request Transcript Student Information System Print Transcript U.S. Mail Receive Transcript Re-key Data Recipient’s Student Information System EDI EDI FLOW ELECTRONIC FUND TRANSFER : ELECTRONIC FUND TRANSFER Electronic funds transfer or EFT refers to the computer-based systems used to perform financial transactions electronically. An EFT is the electronic exchange or transfer of money from one account to another, either within the same financial institution or across multiple institutions. KINDS OF EFT : KINDS OF EFT ATM (Asynchronous Transmission Mode)
CREDIT CARD Slide 20: DEBIT CARD
CASH CARD PROBLEMS WITH EFT : PROBLEMS WITH EFT SECURITY: The main problems with electronic funds transfer is security.
Inconveniences To Consumers:
Activity related to terrorist funding.
Laundering money and tax evasion by some companies. SOME POWERFULTERMS IN B2B : SOME POWERFULTERMS IN B2B OUTSOURCING
NETMARKET PLACE OUTSOURCING : OUTSOURCING Outsourcing or sub-servicing refers to the process of contracting to a third-party.
two organizations may enter a contractual agreement involving an exchange of services and payments.
For Example-Impact B2B Consultants (IBC) is an outsourcing and consulting company. REASONS OF OUTSOURCING : REASONS OF OUTSOURCING Focus on Core Business .
Operational expertise .
Access to talent .
Catalyst for change CONSULTANTS : CONSULTANTS A consultant is a professional who provides professional or expert advice in business field.
For Example- DH Communication is an consulting company. AUCTION : AUCTION A market mechanism by which a seller places an offer to sell a product and buyers make bids sequentially and competitively until a final price is reached.
Auctions can be done:
at public sites
at private sites (by invitation) The Auction Process : The Auction Process NETMARKET PLACE : NETMARKET PLACE Net Markets are online intermediaries where many buyers and many sellers can congregate to trade. Net Markets essentially match buyers and sellers using a variety of market mechanisms including auctions. NET MARKET MODE : NET MARKET MODE B2B’s ATTRIBUTES : B2B’s ATTRIBUTES Huge market opportunity
Financially light business model
Acquisition cost effect
Multiple revenue stream How B2B Companies Make Money? : How B2B Companies Make Money? Sales of products
Service and maintenance fee
Transaction fee and listing fee
Advertising B2B EFFICIENCIES : B2B EFFICIENCIES Administration costs
Maverick purchasing (buying occurs outside the normal channel)
System integration (with the legacy system)
Collaboration (Outsourcing product design), joint channel of distribution
Middlemen (the new service particularly for small business) DRAWBACKS OF B2b MARKETPLACE : DRAWBACKS OF B2b MARKETPLACE Trust Breach
Business Reviewing is Difficult
Addition to Competition
Software and communications standards
Security The Future is Brilliant : The Future is Brilliant B2B e-commerce strategies create significant future benefits.
A number of positive forces fueling future growth of B2B marketplaces and electronic exchanges.
Despite of the drawbacks in a b2b market place , the advantages have enough weight at present to make these marketplaces the perfect meeting grounds for buyers and sellers in future.
So,B2B has a bright future with involvement of internet . CONCLUSION : CONCLUSION If we call these B2B marketplaces as bridge between buyers/sellers, exporters/importers, manufacturers/suppliers then it will be widely acceptable. Actually online business opportunities and business communications have made business processes easy and entertaining where one should not worry about several business formalities and expenditures. On the other hand we can say online e-marketplaces as “Time & Cost Saving Business Medium”. REFERENCES : REFERENCES www.google.com