Business-to-business (B2B) describes commerce transactions between businesses, such as between a manufacturer Manufacturing is the use of machines, tools and labor to make things for use or sale. Also it can be used for selling things. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale. Such and a wholesaler Wholesaling, jobbing, or distributing is defined as the sale of goods or merchandise to retailers, to industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services. In general, it is the sale of goods to anyone other than a standard consumer, or between a wholesaler and a retailer. Contrasting terms are business-to-consumer (B2C An example of a B2C transaction would be a person buying a pair of shoes from a retailer. The transactions that led to the shoes being available for purchase, that is the purchase of the leather, laces, rubber, etc. as well as the sale of the shoe from the shoemaker to the retailer would be considered transactions) and business-to-government (B2G Business-to-government is a derivative of B2B marketing and often referred to as a market definition of "public sector marketing" which encompasses marketing products and services to various government levels - including federal, state and local - through integrated marketing communications techniques such as strategic public relations,).
The volume of B2B transactions is much higher than the volume of B2C transactions. The primary reason for this is that in a typical supply chain A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to the end customer. In sophisticated supply chain there will be many B2B transactions involving subcomponent or raw materials A raw material is something that is acted upon or used by or by human labor or industry, for use as a building material to create some product or structure.[citation needed] Often the term is used to denote material that came from nature and is in an unprocessed or minimally processed state. Iron ore, logs, and crude oil, would be examples. A non-, and only one B2C transaction, specifically sale of the finished product to the end customer. For example, an automobile manufacturer makes several B2B transactions such as buying tires, glass for windscreens, and rubber hoses for its vehicles. The final transaction, a finished vehicle sold to the consumer, is a single (B2C An example of a B2C transaction would be a person buying a pair of shoes from a retailer. The transactions that led to the shoes being available for purchase, that is the purchase of the leather, laces, rubber, etc. as well as the sale of the shoe from the shoemaker to the retailer would be considered transactions) transaction.
Etymology
The term "business-to-business" was originally coined to describe the electronic communications Telecommunication is transmission over a distance for the purpose of communication. In earlier times, this may have involved the use of smoke signals, drums, semaphore, flags or heliograph. In modern times, telecommunication typically involves the use of electronic devices such as the telephone, television, radio or computer. Early inventors in between businesses A business is a legally recognized organization designed to provide goods or services, or both, to consumers, businesses and governmental entities. Businesses are predominant in capitalist economies. Most businesses are privately owned. A business is typically formed to earn profit that will increase the wealth of its owners and grow the business or enterprises An organization is a social arrangement which pursues collective goals, controls its own performance, and has a boundary separating it from its environment. The word itself is derived from the Greek word organon, itself derived from the better-known word ergon in order to distinguish it from the communications Communication is a process of transferring information from one entity to another. Communication processes are sign-mediated interactions between at least two agents which share a repertoire of signs and semiotic rules. Communication is commonly defined as "the imparting or interchange of thoughts, opinions, or information by speech, writing, between businesses and consumers (B2C An example of a B2C transaction would be a person buying a pair of shoes from a retailer. The transactions that led to the shoes being available for purchase, that is the purchase of the leather, laces, rubber, etc. as well as the sale of the shoe from the shoemaker to the retailer would be considered transactions). It eventually came to be used in marketing Marketing is the process by which companies create customer interest in products or services. It generates the strategy that underlies sales techniques, business communication, and business development. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves as well, initially describing only industrial or capital goods A capital good, or simply capital, is saved up wealth that enables enterprise by allowing start-up companies to enjoy an initial period where they consume more than they produce. For start-ups to be able to do this, others must either currently be saving or must have saved in the past. It is simply not possible to have some people consuming more marketing. Today it is widely used to describe all products and services A service is the intangible equivalent of a good. Service provision is often an economic activity where the buyer does not generally, except by exclusive contract, obtain exclusive ownership of the thing purchased. The benefits of such a service, if priced, are held to be self-evident in the buyers willingness to pay for it. Public services are used by enterprises. Many professional institutions and the trade publications focus much more on B2C than B2B, although most sales and marketing personnel are in the B2B sector.
See also
- Business-to-consumer An example of a B2C transaction would be a person buying a pair of shoes from a retailer. The transactions that led to the shoes being available for purchase, that is the purchase of the leather, laces, rubber, etc. as well as the sale of the shoe from the shoemaker to the retailer would be considered transactions
- Business-to-employee Business-to-employee electronic commerce uses an intrabusiness network which allows companies to provide products and/or services to their employees. Typically, companies use B2E networks to automate employee-related corporate processes
- Center for E-Commerce Infrastructure Development
- Consumer-to-consumer Consumer-to-consumer (or citizen-to-citizen) electronic commerce involves the electronically-facilitated transactions between consumers through some third party. A common example is the online auction, in which a consumer posts an item for sale and other consumers bid to purchase it; the third party generally charges a flat fee or commission. The
- E-business Electronic business, commonly referred to as "eBusiness" or "e-business", may be defined as the application of information and communication technologies in support of all the activities of business. Commerce constitutes the exchange of products and services between businesses, groups and individuals and can be seen as one of
- E-Business XML Electronic Business using eXtensible Markup Language, commonly known as e-business XML, or ebXML as it is typically referred to, is a family of XML based standards sponsored by OASIS and UN/CEFACT whose mission is to provide an open, XML-based infrastructure that enables the global use of electronic business information in an interoperable, secure, (ebXML)
- Electronic Commerce Electronic commerce, commonly known as e-commerce or eCommerce, consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks. The amount of trade conducted electronically has grown extraordinarily with widespread Internet usage. The use of commerce is conducted in this way,
- Electronic Data Interchange Electronic data interchange is the structured transmission of data between organizations by electronic means. It is used to transfer electronic documents from one computer system to another, i.e. from one trading partner to another trading partner. It is more than mere e-mail; for instance, organizations might replace bills of lading and even (EDI)
- Empty Vessel The quotation, "As empty vessels make the loudest sound, so they that have the least wit are the greatest blabbers," is from the Greek philosopher Plato[citation needed]
- Online shopping Online shopping is the process whereby consumers directly buy goods, services etc. from a seller interactively in real-time without an intermediary service over the Internet. If an intermediary service is present the process is called electronic commerce. An online shop, eshop, e-store, internet shop, webshop, webstore, online store, or virtual
- Private Electronic Market A private electronic market uses the Internet to connect a limited number or pre-qualified buyers or sellers in one market. PEMs are a hybrid between perfectly open markets (e.g. exchanges where there is no pre-existing relationship between buyer and seller - similar to eBay) and closed contract negotiations (such as a sealed bid tender, where
- UN/CEFACT's Modeling Methodology (UMM) UN/CEFACT's Modeling Methodology, commonly known as UMM is a modeling methodology which is developed by UN/CEFACT - United Nations Center for Trade Facilitation and Electronic Business
- NICC B2B
- B2B e-Marketplace
Categories: Marketing Categories: Business | Service industries | Business economics | Electronic commerce Categories: Banking technology | Commerce | Information technology management | Information technology management Categories: Project management | Information technology
Mon, 26 Jul 2010 14:01:40 GMT+00:00
Business Wire (press release) Another highlight of this year's MED Week Conference is the Matchmaking Business-to-Business (B2B) program. Government agencies and corporate procurement ...
Steve Kayser
Fri, 09 Jul 2010 18:27:18 GM
Ideas, Information, insights and inspirations for . business. Steve Kayser, Editor.
