Personal Reflection 2: Business 2 Business e-Commerce.

I think covering topic 5, the commercial side of the business environment is very important. The majority of transactions that occur everyday throughout the world are ones between chain suppliers to eventually provide a product or service to a consumer.

“It is estimated that B2B e-commerce is the real growth area on the Net with predictions that B2B may account for almost 3/4ths of all Internet commerce revenue by 2004.

B2B covers a wide range of activities, including (electronic data interchange (EDI ) to centralised electronic hubs or exchanges, electronic communications, electronic payment provisions, e-procurement, and more.”

(Sourced – Canberra University B2B: Management and Legal Issues.)

Canberra University B2B: Management and Legal Issues also states: “B2B brings with it many potential benefits including, less need for warehousing, reduced documentation requirements, more transparent pricing, greater stock control, better interaction, opportunity to identify new trading partners and improved logistics.”

The manner in which the B2B business segments can be categorised I found broader than initially. Since my current position in my job is one that primarily deals with Business 2 Business transactions by supplying lending & finance products. Thus I can recognise the importance and relevance of e-Commerce’s role in B2B relationships.

The main difference between the major types of business relationships concerns supply & demand and trading processes. I can see that due to the specific and different manner in which businesses interact with each other, more complex relationships between say for example Distributors and Dealers who have consistent purchasing amounts & pay periods, the ability to purchase with economies of scale and special terms and conditions.

The place I work for would be considered as essentially a “Sell-Side B2B”. The marketplace though would be tagged as a “Many 2 Many” exchanges. This is one that demonstrates extensive open marketplaces with many financial & lending suppliers with many businesses that need funding/finance products. Our financial products are sold through our many different supply channels and departments to wholesalers who provide goods to consumers. e-Commerce is the major tool that allows all of the businesses functions to work, from invoicing procedures to managerial decision making implementation.

Specifically though, e-Commerce facilitates virtually 100% of our business. The businesses infrastructure is based upon the Internet, networks, online portals, e-payments, IM communication and information gathering, the list is endless. These are tools that allow both consumers and business to streamline basic selling and purchasing processes.

I think how e-Commerce provides the advantage of automation is the single most important factor to its success amongst businesses. I think that this alone has revolutionised how business operate and how they implement all processes. These automatic process save time, resources and therefore money. But I think it’s very important to remember that e-Commerce also allows these same benefits for the consumers as well. Online web portals, login systems, b-Pay, EFT, email, online database management, information access, are all products and services which empower the user (usually the consumer).

e-Commerce is the tool that solves the problem with creating a uniform platform in which both buyers and sellers in B2B marketplaces can come together and exchange. The development of how e-Commerce has the ability for consumers to take a greater role and accept more responsibility in the selling process is fantastic for businesses. In B2B relationships, having less responsibility equates to less risk, processing time, implementation and the quicker ability to respond to change.

B2B relationships in the modern company would not be able to survive without the presence of e-Commerce and its ability to transform basic supply chain interactions and processes with EDI.

Reference:

• Canberra University B2B: Management and Legal Issues.

http://209.85.173.104/search?q=cache:WZETz2xWxw0J:www.canberra.edu.au/ncf/publications/b2bmanagement.pdf+b2b+accounts+for&hl=en&ct=clnk&cd=6&gl=au