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Asked a question 4 years ago

What is B2B Commerce?

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Here, both the

Sections involved in e-commerce

transactions are business firms, and,

hence the name B2B, i.e., business-to-

business. Creation of utilities or

delivering value requires a business to

Deal with a number of other business

firms which may be suppliers or vendors

of diverse inputs; or else they may be

a part of the channel through which

a firm distributes its products to

the consumers. For example, the

manufacture of an automobile requires

assembly of a large number of

components which in turn are being

manufactured elsewhere โ€” within the

vicinity of the automobile factory or even

overseas. To reduce dependence on a

single supplier, the automobile factory

has to cultivate more than one vendor

for each of the components. A network

of computers is used for placing orders,

monitoring production and delivery of

components, and making payments.

Likewise, a firm may strengthen and

improve its distribution system by

exercising a real time (as it happens)

control over its stock-in-transit as well

as that with different middlemen in

different locations. For example, each

consignment of goods from a warehouse

and the stock-at-hand can be monitored

and replenishments and reinforcements

can be set in motion as and

when needed. Or else, a customerโ€™s

specifications may be routed through

the dealers to the factory and fed

into the manufacturing system for

customised production. Use of

e-commerce expedites the movement of

the information and documents; and of

late, money transfers as well.

Historically, the term e-commerce

originally meant facilitation of B2B

transactions using Electronic Data

Interchange (EDI) technology to send

and receive commercial documents like

purchase orders or invoices.

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