Supply chain differences between B2C, B2B and a brick and mortar store
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Write a paper that explains how the supply chain differs on a B2C site compared to a B2B site and a brick and mortar store. Give specifics. Try to relate your answer to your job or industry.
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Solution Summary
This solution discusses the differences in supply chain on a B2C site, B2B site, and a brick and mortar store.
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First let us go over what a B2B store or site is. This is one where businesses sell to other businesses. A good example would be a car manufacturer buying tires from a tire manufacturer.
The relationship could be between - a supplier and manufacturer, wholesaler and retailer... Some characteristics of b2b are:
- they tend to purchase high volume orders, but less frequently
- tend to form relationships between the partners
- negotiate prices and contracts
- sales contracts can take time to negotiate the details
In a b2c site, you have a company selling directly to the client. A good example would be amazon.com selling books directly to individuals.
In this case, here are some of the characteristics:
- there may be many transactions a day, but small volume
- the customer is attracted to the product based on price and service - it is rare to have contracts with a site
- price is often non-negotiable and stable
- consumers conduct more research on products
Given these differences, it is understandable that there will be different supply chain issues. According to "B2B vv. B2C Supply Chains" by Randy Johnson, the main difference between the two is firstly the number of channels that exist that flow ...
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