When a company distributes its goods to another company without involving the customers, it is termed as B2B (Business to Business). It is readily used in the e-commerce industry today as the business owners want to expand their e-commerce capabilities on a multichannel experience. Alternately we can say B2B implies that both the seller and the buyers are business corporations.
How is B2B Business advantageous?
Business to Business transaction is carried out through the internet and it covers all types of organizations in the world. This also includes business-business shopping and sales as well as provision of various services. With the advancement of technology with each and every day, it has gained momentum in the business and commerce world.
1. B2B improves speed, cost and accuracy of the business transactions.
2. B2B improves relationships among trading partners. The accuracy in data makes it possible for suppliers to ensure accurate and timely shipments to their customers while reducing the expenses of returned shipments of incorrect products. The higher level of customer service tends to attract new customers and increase the volume of existing customer orders
3. B2B promotes the awareness and spread of data throughout the business cycle. It makes everyone aware of abilities to monitor the customer’s customer, track vendor or transportation carrier performance, better understand product availability etc.
4. B2B ensures improvised planning and execution in the business. Suppliers can process orders quicker and shipments can be scheduled accordingly, while the manufacturer can anticipate quicker receipt of goods and schedule manufacturing tasks accordingly. It also improves the cash flow in the company.
5. B2B enables reduction of overhead costs, eliminating human handling in such areas as mailroom sorting and circulation, clerical document preparation, data entry, telecommunication etc. it also reduces costs for storage spaces for papers used in the business work as well as the headache to manage them.
6. B2B facilitates procurement management in the business transactions.
Today, the competition is tuff in the market and consumer is becoming more demanding towards buying of the products and services. Therefore, more and more strategic planning is implemented in the B2B transactions. Business suppliers acknowledge that having a multichannel strategy is critical to their company’s long-term success.
Business buyers expect their suppliers to provide enhanced fulfillment capabilities such as the next day delivery and easy return. At the same time this multichannel strategy is going to add on to the investment in technology for the business suppliers. This is why all the B2B suppliers are unable to follow this strategy and prove to be secondary on consumers demand fulfillment.
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