Comparing B2C to B2B

Process Individual Business Organization

Decision to Made based on own needs Made based on the organization’s needs which
purchase are a combination of many different
departmental and individual needs

Decision where Made after own research into Made through a systematic process that
to buy market involves considering what each vendor can
provide the organization in terms of setup,
networking, and so on.

Number of One Many

Items

Actual Buy computer online or in Buy computers only after significant

Purchase person with personal credit negotiations over price and terms with vendor
card

Payment Pay credit card bill with Pay by company check only after assuring that
personal check all computers have been delivered and setup
by vendor
 Introduction to B2G
• B2G refers to the use of the internet for
public procurement, licensing
procedures, and other government
related operations.
• Businesses and government agencies can
use central Web sites to exchange
information and do business with each
other more efficiently than they usually
can off the Web.
• For example, a Web site offering B2G services could
provide businesses with a single place to locate
applications and tax forms for one or more levels of
government (city, state or Central, and so forth);
provide the ability to send in filled-out forms and
payments; update corporate information; request
answers to specific questions; and so forth.
• B2G may also include e-procurement services, in
which businesses learn about the purchasing needs
of agencies and agencies request proposal
responses.
• It increases the transparency of the
procurement process and reduce the risk of
irregularities

• B2G may also support the idea of a virtual

workplace in which a business and an agency
could coordinate the work on a contracted
project by sharing a common site to
coordinate online meetings, review plans, and
manage progress.
Government-to-Government (G2G)
• This model involves transactions between 2
governments.
• For example, if the Indian government wants
to by oil from the Arabian government, the
transaction involved are categorized in the
G2G model.
 Government-to-Consumer (G2C)
• In this model, the government transacts with
an individual consumer.
• For example, a government can enforce laws
pertaining to tax payments on individual
consumers over the Internet by using the G2C
model.
 Consumer-to-Government (C2G)
• In this model, an individual consumer interacts
with the government.
• For example, a consumer can pay his income
tax or house tax online. The transactions
involved in this case are C2G transactions
 Government-to-Business (G2B)
• This model involves transactions between a
government and business organizations.
• For example, the government plans to build a
fly over.
• For this, the government requests for tenders
from various contractors. Government can do
this over the Internet by using the G2B model.
 Supply Chain Management
• SCM is defined as the supervision of materials,
information and finances as they move from
supplier to manufacture to wholesaler to
retailer to consumer.
• SCM involves the coordination and integration
of these flows within and among companies.
• The goal of SCM is timely provision of goods
or services to the next link in the chain.
 Traditional Procurement Process
• In the traditional procurement process, there are five steps
involving three elements—purchase order, invoice, and
receipt of goods:
1. Purchase order (PO) to vendor
2. Goods to buyer along with bill of lading (BOL)
3. Upon receipt of goods and BOL, signed copy of BOL
returned to vendor and receipt of goods is filed
4. Vendor sends invoice to buyer
5. Buyer’s accounting department compares PO to receipt of
goods and invoice. If there is a match, buyer pays the
vendor.
Traditional Procurement Process
• Supply chain management flows can be
divided into three main flows:
• The product flow includes the movement of
goods from a supplier to a customer, as well as
any customer returns or service needs. 
• The information flow involves transmitting
orders and updating the status of delivery.
• The financial flow consists of credit terms,
payment schedules, and consignment and title
ownership arrangements.
• product flow is nothing but starting from the raw
materials to the end product to the customer.

• information flow is nothing but the sharing of

information's from the customer as well as
supplier . It is both directions.
• Money flow is nothing but the funds flow from
the consumers to the manufacturer, from
manufacturer to supplier.
 The supply chain drivers are grouped under
two main drivers:
• logistics drivers :
– facilities --   warehouse or storage locations or factory
location.
– Inventory --  stock of raw materials or finished goods
– transportation--- moving of goods from one place to another.
• Cross functional drivers :
– pricing -  cost of goods
– information --- information is nothing but the customer
needs and wants
– sourcing -- procuring raw materials for production activities.
 Cost Involved in Supply Chain
• "INVENTORY COST".

• "LOGISTICS COST" : it is the most important

cost, because the transportation of raw
materials, semi finished goods and finished
goods. so the logistics cost plays a  major role
in supply chain.
• There are two main types of SCM software:
1. Planning applications and
2. Execution applications.
• Planning applications use advanced algorithms
to determine the best way to fill an order.
• Execution applications track the physical
status of goods, the management of materials,
and financial information involving all parties.
• Some SCM applications are based on open
data models that support the sharing of data
both inside and outside the enterprise (this is
called the extended enterprise, and includes
key suppliers, manufacturers, and end
customers of a specific company).
• This shared data may reside in diverse
database systems, or data warehouses, at
several different sites and companies.
 E-Supply Chains
• Definitions and Concepts
– supply chain
The flow of materials, information, money, and
services from raw material suppliers through
factories and warehouses to the end customers
– e-supply chain
A supply chain that is managed electronically,
usually with Web technologies

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E-Supply Chains

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 Type of Supplier
• A supplier that sends materials directly to the
operations is a first tier supplier;
• A Supplier that send materials to a first tier supplier
is a second tier supplier;
• A Supplier that sends materials to second tier
supplier is a third tier supplier, and so on back to
the original sources.
• Most organisations get materials from many
different suppliers, so the supply chain converges as
raw materials move in through the tiers of suppliers.

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 E-Supply Chains
• Supply Chain Parts
– Upstream supply chain
• procurement
The process made up of a range of activities by which
an organization obtains or gains access to the
resources (materials, skills, capabilities, facilities) they
require to undertake their core business activities
E-procurement is the term used to describe the electronic
methods used in every stage of the procurement process,
from identification of requirement through to payment. It
can be broken down into the stages of e-sourcing, e-
purchasing and e-payment.

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 Internal supply chain
– Internal supply chain refers to the chain of
activities within a company that concludes with
providing a product to the customer. This process
involves multiple functions within companies –
sales, production, and distribution.
– Activities here include materials handling,
inventory management, manufacturing, and
quality control
 Downstream supply chain
• Downstream supply change management is about managing
relationships with both customers and consumers, as well as any
other intermediaries along the way.
• Examples of downstream supply chain management actions are:
– providing displays for retailers
– creating a website for end users
– creating user forums on web sites
– determining which retailers and distributors to use
– changes to finished goods inventory policies
– setting recommended retail prices
– giving retail exclusivity rights
 E-Supply Chains
• supply chain management (SCM)
A complex process that requires the coordination of
many activities so that the shipment of goods and
services from supplier right through to customer is
done efficiently and effectively for all parties
concerned.
SCM aims to minimize inventory levels, optimize
production and increase throughput, decrease
manufacturing time, optimize logistics and
distribution, streamline order fulfillment, and overall
reduce the costs associated with these activities

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 E-Supply Chains
• e-supply chain management (e-SCM)
The collaborative use of technology to improve the
operations of supply chain activities as well as the
management of supply chains
• The success of an e-supply chain depends on:
– The ability of all supply chain partners to view partner
collaboration as a strategic asset
– A well-defined supply chain strategy
– Information visibility along the entire supply chain
– Speed, cost, quality, and customer service
– Integrating the supply chain more tightly

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 E-Supply Chains
• Activities and infrastructure of E-SCM
– Supply chain replenishment : Replenishment is the motor
for supply chain, it is the mechanism that ensures that we
never miss a sale by not having the right material in the
right place at the right time for the customer.
– E-procurement
– Supply chain monitoring and control using RFID
– Collaborative planning
– exchanges and supply webs

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 E-Supply Chains
• e-procurement
The use of Web-based technology to support the key
procurement processes, including requisitioning, sourcing,
contracting, ordering, and payment. E-procurement supports
the purchase of both direct and indirect materials and
employs several Web-based functions such as online catalogs,
contracts, purchase orders, and shipping notices
• collaborative planning
A business practice that combines the business knowledge
and forecasts of multiple players along a supply chain to
improve the planning and fulfillment of customer demand

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• E-Logistics, Web based applications and
services dealing with the efficient transport,
distribution, and storage of products along the
supply and demand chain.
 E-Supply Chains
• Infrastructure for e-SCM
– Electronic Data Interchange (EDI)
– Extranets
– Intranets
– Corporate portals
– Workflow systems and tools
– Groupware and other collaborative tools

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 E-Supply Chains
• Determining the Right Supply Chain Strategy
– Functional products are staple products that have stable
and predictable demand and call for a simple, efficient,
low-cost supply chain
– Innovative products tend to have higher profit margins,
volatile demand, and short product life cycles. These
products require a supply chain that emphasizes speed,
responsiveness, and flexibility rather than low costs

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 Supply Chain
Problems and Solutions
• Typical Problems along the Supply Chain
– With increasing globalization and offshoring, supply chains
can be very long and involve many internal and external
partners located in different places
– A lack of logistics infrastructure might prevent the right
goods from reaching their destinations on time
– Quality problems with materials and parts also can
contribute to deficiencies in the supply chain

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 Supply Chain
Problems and Solutions
• The Need for Information Sharing along the
Supply Chain
• EC Solutions along the Supply Chain
– Order taking
– Order fulfillment
– Electronic payments
– Managing risk
– Inventories can be minimized
– Collaborative commerce

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 Key Enabling Supply Chain
Technologies: RFID and Rubee

• radio frequency identification (RFID)

Tags that can be attached to or embedded in
objects, animals, or humans and use radio
waves to communicate with a reader for the
purpose of uniquely identifying the object or
transmitting data and/or storing information
about the object

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Customer relationship management (CRM) 

• It refers to the practices, strategies and technologies

that companies use to manage, record and evaluate
customer interactions in order to drive sales growth by
deepening and enriching relationships with their
customer bases.
• CRM systems are designed to compile information on
customers across different channels or points of contact
between the customer and the company -- which could
include the company's website, telephone, live chat,
direct mail, marketing materials and social media.
• CRM systems can also give customer-facing
staff detailed information on customers'
personal information, purchase history, buying
preferences and concerns.
 CRM software
• CRM software consolidates customer information and
documents into a single CRM database so business
users can more easily access and manage it.
• The other main functions of this software include
recording various customer interactions (over email,
phone calls, social media or other channels, depending
on system capabilities), automating various workflow
processes such as tasks, calendars and alerts, and
giving managers the ability to track performance and
productivity based on information logged within the
system
Common features of CRM software
• Marketing automation: CRM tools with marketing
automation capabilities can automate repetitive
tasks to enhance marketing efforts to customers at
different points in the lifecycle.
• For example, as sales prospects come into the
system, the system might automatically send them
marketing materials, typically via email or social
media, with the goal of turning a sales lead into a
full-fledged customer.
 Sales force automation
• It is also known as sales force management,
sales force automation is meant to prevent
duplicate efforts between a salesperson and a
customer.
• A CRM system can help achieve this by
automatically tracking all contact and follow-
ups between both sides.
 Contact center automation
• Designed to reduce tedious aspects of a
contact center agent's job, contact center
automation might include pre-recorded audio
that assists in customer problem-solving and
information dissemination.
• Various software tools that integrate with the
agent's desktop tools can handle customer
requests in order to cut down the time of calls
and simplify customer service processes.
 Geolocation technology, or
location-based services
• Some CRM systems include technology that
can create geographic marketing campaigns
based on customers' physical locations,
sometimes integrating with popular location-
based GPS apps.
• Geolocation technology can also be used as a
networking or contact management tool in
order to find sales prospects based on
location.
 CRM technology market
• The four main vendors of CRM systems are
•  Salesforce.com
• Microsoft
• SAP (System, Application, Product in Data
Processing (http://www.saponlinetutorials.com)
• Oracle.
• Other providers are popular among small- to mid-
market businesses, but these four tend to be the
choice of large corporations.