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B2B Business

In: Business and Management

Submitted By skill04
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3. List at least five potential benefits of B2B e-commerce
• Reduced inventory costs due to increased competition among the suppliers (which increases price transparency) and reducing inventory to a bare minimum
• Lower transaction costs due to the elimination of paperwork and the partial automation of the procurement process
• Increased production flexibility by ensuring delivery of parts “just-in-time”
• Improved quality of products due to increased cooperation among buyers and sellers, reducing quality issues
• Decreased product cycle time due to the sharing of designs and production schedules with suppliers
4. Name and define the two distinct types of procurements firms make. Explain the difference between the two.
The two types of procurements that firms make are for direct goods and indirect goods. Direct goods are directly involved in the production process such as the sheet steel used to produce an automobile body. Indirect goods are all other goods that are needed to carry out the production process, but are not directly involved in creating the end product. They include office supplies and maintenance products, which are often called MRO (maintenance, repair and operations) goods.
5. Name and define the two methods of purchasing goods.
The two methods of purchasing goods are contract purchases and spot purchases. Contract purchases are long-term agreements to buy a specified amount of a product. There are pre-specified quality requirements and pre-specified terms. Spot purchases are for goods that meet the immediate needs of a firm. Indirect purchases are most often made on a spot purchase basis in a large marketplace that includes many suppliers.
6. Define the term supply chain and explain what SCM systems attempt to do. What does supply chain simplification entail?
The supply chain refers to the series of transactions that links sets of firms...

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