B2B models 3.Learning Objectives 1. Characteristics of B2B 5-2 . What is B2B 2.

or private networks. and Models of B2B EC business-to-business e-commerce (B2B EC) Transactions between businesses conducted electronically over the Internet.Concepts. extranets. also known as eB2B (electronic B2B) or just B2B 5-3 . Characteristics. intranets.

5-4 .

and Models of B2B EC The Basic Types of B2B Transactions and Activities Sell-side Buy-side Exchanges Supply chain improvements and collaborative commerce 5-5 .Concepts. Characteristics.

Concepts. Characteristics. and Models of B2B EC 5-6 .

Models of B2B EC Buyer-side or Seller-side Company-centric EC Private e-marketplaces Intermediaries-side Many-to-many: exchanges Public e-marketplaces Supply chain activities and collaborative commerce (m:m:1) B2B2C 5-7 .

and operation) Direction of trade vertical marketplaces horizontal marketplaces 5-8 . repair.Characteristics of B2B EC Types of transactions  spot buying  strategic (systematic) sourcing Types of materials traded  direct materials  indirect materials  MRO (maintenance.

Supply ChainB2B EC SUPPLY CHAIN RELATIONSHIPS IN B2B Obtaining of materials from suppliers Processing of a product or service Packaging it and moving it to distributors and retailers The eventual purchase of a product by the end consumer 5-9 .

Virtual B2B Services Travel and hospitality services Real estate Financial services Online stock trading Online financing Other online services 5-10 .

Benefits of B2B EC          New sales (purchase) opportunities Eliminates paper Reduces administrative costs Fast cycle time Lowers errors. search costs and time for buyers to find products and vendors Higher productivity of buyers & sellers Improves quality of services Makes product configuration easier Reduces marketing and sales costs (for sellers) 5-11 .

.g. permitting just-intime delivery  Reduces procurement costs (for buyers)  Facilitates customization via configuration (e.Benefits of B2B EC  Reduces inventory levels and costs  Customized online catalogs & prices  Increases production flexibility. at Cisco)  Provides for efficient customer service  Increases opportunities for collaboration 5-12 .

Limitations of B2B EC Channel conflict Operation of public exchanges 5-13 .