Who Conducts B2B eCommerce? Trading partners within supply chain networks are the primary participants in B2B eCommerce. In most modern supply chains, trading partners will exchange electronic documents in support of the purchase, movement, and payment of goods and services.
The Basic Trading Partnership Relationship. B2B eCommerce consists of manufacturers, retailers, and service providers who exchange electronic business documents with their suppliers. These business or trading partners have an on-going need to exchange hundreds, if not tens of thousands, of business documents on an on-going basis. Key business documents include such items as purchase orders, advance shipment notices, invoices, and electronic funds transfers (EFT).
Third Party B2B Partners. Additionally, the customer and supplier relationship can be supplemented by a 3rd party that is an integral part of the B2B eCommerce relationship. This can include third-party logistics providers as well as third-party eCommerce technology providers.
3rd Party eCommerce Provider. Technical 3rd party service providers such as a Value Added Network (VAN) assist manufacturers, retailers, service providers as well as associated suppliers with the technical aspects of exchanging electronic business documents. See posting on Selecting an EDI company for more on VANs, EDI software, B2B portals, and EDI service providers.
3rd Party Logistics (3PL) Providers. Another type of B2B eCommerce service provider is a 3rd party logistics company. Here either the business customer or the supplier has outsourced part of their supply chain to a third-party logistics provider. In this case the a supplier may exchange electronic business documents such as advance ship notices with a third party logistics provider, but exchange purchase orders and invoices with the main customer.
Supply Chain Networks. Over the years supply chains have become more and more like networks that use B2B eCommerce to exchange business documents with multiple customers, multiple suppliers, 3rd party logistics companies, 3rd party manufacturers, 3rd party service providers, and 3rd party B2B eCommerce providers. See posting, From Supply Chains to Supply Chain Networks, on how supply chains have evolved into supply chain networks that provide redundancy and reduce risk in the supply chain.
Small Trading Partners. Small trading partners offer many challenges in establishing a comprehensive B2B eCommerce networks. For large companies the challenge is to find an effective solution to enable hundreds, if not thousands, of small suppliers that do not have an IT staff to set up a B2B connection. Of course, B2B eCommerce is a challenge for small suppliers even with assistance from their trading partners. Even if a small supplier gets hooked up with one of their business customers, they still then need to meet the unique B2B eCommerce requirements of their other business customers. See posting, What if We Gave All Suppliers Free EDI Software?, for more on the challenges of small supply chain trading partners.
Tags: B2B, supply chain