E-Commerce

Paper Summary:

This paper explains that the logistics employed by a B2B (business-to-business) company are different than a B2C company (business-to-consumer) to manage their supply chain strategies stem from the nature of the type of customers of the different entities. The author points out that the B2C customers may wish to maximize their value in their business transactions similar to the B2B customers, but the B2C customers also may have more difficult-to-define needs, such as looking or feeling good. The paper presents the former B2B star Dell Computers as an example of a newly successful B2C transaction, which have successfully managed its supply chain inventory.

From the Paper:

"The variables studied in B2B marketing segmentation also tend to be more concentrated than the many different kinds and levels segmentation methods used for B2Cmarket segmentation. This does not mean that the B2B supply chain does not have its own challenges. B2B businesses often deal with longer, more complex sales cycles. Additionally, the statistical and quantitative research strategies that work well in consumer marketing are often not as insightful in B2B marketing. Because the customer base for B2B is typically smaller, the amount of research needed to achieve statistically significant input may be less than a B2C, but also may be less accurate, helpful, and difficult to obtain."

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