Business to Business E-Commerce (EC)

Introduction

Business-to-Business e-business holds electronic transactions among and between businesses. The Internet and reliance of all businesses upon other companies for supplies, utilities and services has enhanced the popularity of B2B e-business and made B2B the fastest growing segment within the e-business environment.

In recent years, extranets (more than one intranet) have been effectively used for B2B operations. B2B e- business creates dynamic interaction among the business partners; this represents a fundamental shift in how business will be conducted in the 21" century.

Companies using B2B e- business relationship observe cost savings by increasing the speed, reducing errors and eliminating many manual activities. In a B2B environment, purchase orders, invoices, inventory status, shipping logistics and business contracts handled directly through the network result in increased speed, reduced errors and cost savings.

B2B e- business reduces cycle time, inventory and prices and enables business partners to share relevant, accurate and timely information. The end result is improved supply-chain management among business partners. The figure 2.1 illustrates a generic B2B relationship.

For example, Wal-Mart Stores is an example for B2B e- business. Wal-Mart's major suppliers (e.g., Proctor & Gamble, Johnson & Johnson and others) sell to Wal-Mart Stores electronically; all the paperwork is handled electronically. These suppliers can access online the inventory status in each store and refill needed products in a timely manner.

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