Mobile Commerce Chapter 12

how does b2b differ from b2c

• longer sales cycles: purchase decisions take longer because they are large and complex

• multiple decision makers

• knowledgeable customers: customers are normally experts

• customization and complexity

• strong customer relationships: long term partnerships are essential

Evolution of tech platforms b2b

• automated order entry systems (1970s)

• EDI - Electronic data interchange

• B2B e-commerce websites

• private industrial networks

• net marketplaces

• social networks’

• mobile apps (2020 onward)

growth if B2B e commerce in the US

• consistent upward trend

• 30 trillion increase

procurement process

• search - catalogs, internet, brochures

• qaulify - reveiw vendors

• negotiation - price, terms, delivery

• purchase order

• invoicing 

• shipping 

• remittance payment - buyer actually pays

direct goods procurement

essential in the production process, raw materials

indirect goods procurement

not part of production but required for operations, maintenance and repair

contract purchase method

• long term written agreements

• used for large, predictable, ongoing needs

• reability and cost effeciency

spot purchasing model

• buying in open markets for immediate needs

• speed and flexibility

multi tier supply chain

a complex system involving multiple layers of suppliers and manufacturers, ensuring product flow from raw materials to end-users.

tier 1 suppliers

assemblers or system integrators, closest to the buyer - assembly plants

tier 2 suppliers

suppliers that provide components or services to tier 1 suppliers, supporting the assembly process. - part manufacturers

tier 3 suppliers

suppliers that provide raw materials or basic components to tier 2 suppliers, contributing to the supply chain. - plastic provider

Trends in supply chain management

• simplification

• adaptiveness

• accountability 

• sustainability

• mobile ad cloud based B2B

• blockchain and internet o things

• collaboartive commerce

Just in time simplification

• minimize inventory, reduce costs, waste

• highly vulnerable to supply chain disruptions and delays.

lean production simplification

an approach that emphasizes efficiency by reducing waste, focusing on value creation, and optimizing resource use in manufacturing processes.

adaptive supply chains

to manage uncertainty companies

• reduce centralization - avoid reliance on a single supplier or country

• regionalize production - building chains that can shift rapidly to safer/cheaper regions 

Accountability

driven by oublic awareness of labour issues

• fair labour association

sustainability

• reduce solution, circular economy

Supply chain management systems

• link buying, making and moving products

• increase transparency and responsiveness 

blockchain in supply chains

• secure, reilient, transparent, could replace EDI

IOT in supply chains

smart sensors track goods and conditions in real time

collaborative commerce

enable 

• shared design

• joint planning

• collaborative production

• rich communication

• moves focus from transactions to relationships

Bias

whose interests the marketplace favours

• buyer biased

• seller biased

• neutral

ownership

who owns the marketplace

• industry owned

• third part owned

pricing mechanisms

• fixed price catalogs: set prices

• auctions: competitive bidding

• bid/ask: buyers post bids, seller post asks

• RFP/RFQ: request for proposal/quotation

horizontal markets

general purpose, scalable, many industires

vertical markets

deep specialization in one industry

value creation

• monetary

• informational

• operational

public marketplaces

open entry, high competition

private marketplaces

invitation only, high trust, long term partnerships

B2B e commerce marketplaces

• edistributors

• eprodcurement platforms 

• exchanges

• industry consortium 

• private b2b networks

e - distributors

provide industrial buyers a single source for indirect goods, typically spot purchases

• independently owned

• horizontal scope

• fixed price discounts

• public access

• amazon

E - Procurement

connect hundreds of suppliers offering indirect goods through contract purchasing, often SaaS or PaaS platforms

• independent intermediaries

• licensing, transaction fees

• must pay to join

• microsoft 365

exchanges

buyer biased marketplaces enabling spot purchasing in real time

• independant

• vertical

• commissions

• public access

• volatile

industry consortium

unify an entire industry supply chain around a shared platform

• industry owned

• vertical

• subscription/transaction fees

• stable, long tern contracts and shared data standards

Private b2b

web enabled networks supporting coordination, collaboration, and supply chain visibility

• sponsored by single large firm

• efficiency, visibility, deeper supplier relationships

• can scale globally

• manufacturing and retail, walmart

gielens et at

suppliers with strong environmental reputations preformed better

implementation barriers

• sharing sensitive data

• expensive and complex integration 

• requires major cultural shift\

• participants lose some independence

• suppliers may resist transparency or mandated standards 

benefits of private b2b

• increased efficiency in operations

• enhanced supplier relationships

• improved data visibility

• potential for global scaling