University of Phoenix
November 20, 2006
Through the years, brick and mortar buildings seemed to have been the most effective way of having a successful business. Today, with the creation of the internet many businesses now have the opportunity to reach millions of customers and other businesses worldwide. The internet has caused an enormous surge in the world's economy through business to customer (B2C) and business to business (B2B) transactions. According to Nariane (2003), in 2003 B2B sales worldwide accounted for $1.41 trillion. B2C sales accounted for $90.1 billion in 2003. Because there is an enormous amount of e-commerce between B2B and B2C worldwide, the supply chain plays a vital in transporting all purchases throughout the world. This paper will define what a supply chain is. Defining the terms of B2B and B2C will also be discussed. Finally the last segment will explain how the supply chain differs on a B2C site compared to a B2B site and will also provide specific examples.
Defining the Supply Chain
According to learnthat.com (2004), a supply chain is a series of channels a product takes from its initial production to reach its final destination. A current example of a product going through the supply chain would be the hottest new item just in time for Christmas, Sony Playstation 3. The supply chain begins with the initial development and production of each system by Sony. Sony produces the product by making components that are compatible with the system and raw materials from other manufacturers. The company only produced 400,000 on their initial launch. This makes competition amongst customers fierce because millions more then the initial 400,000 made want to be the first to have it. The systems moved throughout the country to chain stores like Wal-Mart, Best...