Scott A. Hawkins
January 18, 2010
B2B and B2C Supply Chain Analysis
As typical American consumers, we often identify a need and satisfy it without much thought. When our toaster breaks while making the morning breakfast, we go out and buy a new one. At lunchtime, we become hungry and go somewhere to find food that satisfies our craving. Most consumers do not consider how the price they paid for something was calculated or how the item was assembled, packaged, and brought to the marketplace for purchase. When a consumer is choosing between a Ford, GM, or Toyota vehicle, little consideration is given to the suppliers involved or the complex process involved in simply procuring the components of the vehicle before assembly. This paper will provide analysis of the procurement process that is involved in Business to Business (B2B) and Business to Consumer (B2C) relationships and provide examples that illustrate contrast between the similar, yet different processes used to bring products to their respective consumers.
The B2B supply chain
Product manufacturers are often consumed with getting their products into the hands of demanding consumers. However, getting a product to market is a detail-oriented process with many parties involved. These parties are part of what is known as the supply chain. “A company’s supply chain for a particular product or service includes all the activities undertaken by every predecessor in the value chain to design, produce, promote, market, deliver, and support each individual component of that product or service” (Schneider, 2008, p. 230). To illustrate this concept, we turn to an object in most households today; the personal computer. Although assembled as a single unit for use, the personal computer has many individual components such as the motherboard, processor, memory, case, power supply, etc. Each component may... [continues]
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