Module 3

Business-to-Business Activities: Purchasing, Logistics, and Support Activities

Electronic Data Interchange
Supply Chain Management Using Internet Technologies
Electronic Marketplaces and Portals, Social Networking
Mobile Commerce, and Online Auctions
Purchasing, Logistics, and Support Activities
• Purchasing Activities
• Purchasing activities include:
• Identifying Vendors
• Evaluating Vendors
• Selecting Specific Products
• Placing Orders
• Resolving any issues that arise after receiving the ordered goods and services

• Procurement includes all purchasing activities, plus monitoring of all elements of purchase
transactions.
• By using a Web site to process orders, the vendors in this market can save the cost of printing
and shipping catalogs, and the cost of handling telephone orders.
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Purchasing, Logistics, and Support Activities

• Logistics Activities
Purchasing, Logistics, and Support Activities
• Support Activities
• Support Activities are the things or the one who helps in order to support the activities in an organization or
businesses this may include:  
• 1. Finance and Administration                                                                                                                        
• 2. Human Resources
• 3. Technology development

• Finance and administration are responsible for all aspects of its financial health. They remain accountable for
the resources entrusted to them, including funding, facilities and staffing, even if they have delegated budget and
accounting responsibilities to their staff.
• Human Resources are the one who ensures understanding of collective bargaining agreements’ specific provisions
with respect to filling of bargaining unit positions.
• Technology development are the one who really knows everything about technologies, they are updated in terms
of technology.
Electronic Data Interchange (EDI)
• II. ELECTRONIC DATA INTERCHANGE
• EDI is a computer-computer transfer of business information between two businesses that uses a standard format.
Transaction data in B2B transactions includes the information on paper invoices, purchase orders, request for
quotations, bill of lading and receiving reports.
• Early Business Information Interchange Efforts
• In 1950s, information flows between businesses continued to be printed on paper.
• By the 1960s, businesses had begun exchanging transaction information on punched cards or magnetic tape.
• In 1968, a number of freight and shipping companies formed the Transportation Data Coordinating Committee
(TDCC) to create the TDCC standard format.
• Emergence of Broader Standards 
• The American National Standard Institute (ANSI) has been the coordinating body for standards in the U.S. since 1918.
• In 1979, ANSI chartered a new committee to develop uniform EDI standards. This committee is called the Accredited
Standard Committee X12 (ASC X12).
• In 1987, the United Nations published its first standards under the title ” EDI for Administration, Commerce and
Transport (EDIFACT or UN/EDIFACT).
• How EDI Works?
• How EDI Works?
• A buyer prepares an order in his or her purchasing system and has it approved. Next, the EDI order is
translated into an EDI document format called an 850 purchase order. The 850 purchase order is
then securely transmitted to the supplier either via the internet or through a VAN (Value Added
Network).
• Value added Networks
• EDI reduces paper flow and streamlines the interchange of information among departments within a
company and between companies.
• Trading partners can implement the EDI network and EDI translation processes in sevaral ways use
either direct connection or indirect connection.
• EDI on the Internet 
• Trading partner who had been using EDI began to view the Internet as a potential replacement for
the expensive lease lines. The major roadblocks to conducting EDI over the Internet were security. As
the TCP/IP was enhanced and SHTTP protocol was developed, businesses worried less about security
issues.
Supply Chain Management (SCM)
• III. SUPPLY CHAIN MANAGEMENT 
• The part of industry value chain that precedes a particular strategic business unit is often called a supply chain. The purchasing
department has traditionally been charge with buying all of this components at the lowest price possible.
• Value Creation in the Supply Chain
• The process of taking the active role in working with suppliers to improve products and processes is called supply chain
management (SCM).
• SCM was originally developed as a way to reduce costs. Today, is used to add value in the form of benefits to the ultimate consumer
at the end of the supply chain.
• Supply chain members can reduce costs and increase the value of product or service to the ultimate customer.
• Technology in the Supply Chain
• Clear communications, and quick responses to those communications, are a key elements of successful  SCM. Technologies of the
Web can be very effective communication enhancers.
• In 1997, production and scheduling errors costing Boeing over $1.5 billion. Using EDI and Internet links, Boeing is working with
suppliers so that they can provide the right part at the right time.To further benefit customers, Boeing launched a spare parts Web
site, Boeing PART.
• Dell computer has also used technology-enabled SCM to give customers exactly what they want. Dell has been able to dramatically
reduce the amount of inventory it must hold. Dell has also shared this information with members of its supply chain.
• IV. Software for Purchasing, Logistics, and Support Activities
• Enterprise Resource Planning Software 
• Enterprise resource planning (ERP) software is designed to help a company integrate all of its manufacturing,
finance, distribution, and other internal business functions into one information system. Major ERP vendors
include J.D. Edwards, Oracle, PeopleSoft, and SAP.
• Business-to-Business (B2B) Commerce Software
• B2B commerce software is designed to help companies build Web sites that host catalogs and other
commercial sales activities. Netscape’s SellerXpert and Open Market’s LiveCommerce-Transact combination
are full-featured products that help companies put catalogs online.
• The other B2B commerce software packages are tool kits that help the customer custom configure catalog and
order management systems.
• Supply Chain Management Software
• Supply chain management software includes demand forecasting tools and planning capabilities to coordinate
various activities. Currently, the two major firms offering SCM software are i2 Technologies and Manugistics.
Electronic marketplace and portals
• Independent industry marketplace
• Private store and customer portal
• Private company marketplace
• Industry consortia sponsored marketplace
• Private store on seller site
Electronic marketplace and portals
Social network for e-commerce
• Social media ecommerce marketing is the practice of using social media
to promote an online store by generating brand awareness, interest in
products or services, and sales.
• Popular social media ecommerce tactics include:
• Promoting and driving traffic to an ecommerce website or branded app
• Selling products directly on social media
• Engaging with customers and prospects directly on social channels
• Providing pre- and post-sale support to customers
• Collecting insights about your industry and market
• Building an online social media community around your brand
• rest in products or services, and sales.
Social selling

• This is when brands use social media to identify, connect with, and
nurture sales prospects. It’s a tactic that helps businesses reach and
engage with sales targets via social media.

• Think of social selling as modern relationship-building. The goal is to

connect with potential customers, and offer support and guidance.
Then, when that person is in buy mode, your product or service
comes to mind first.
Social commerce

• This is when brands sell products or services directly on social media

using native solutions like Facebook Shops, Instagram Shops, Pinterest
Product Pins, or TikTok Shop.

• Social commerce lets customers shop, select, and complete purchases

without leaving social media apps.
6 ways brands can use social media for
ecommerce
1. Build brand awareness
2. Advertise
3. Sell products directly on social media
4. Increase sales with an ecommerce chatbot
5. Customer support
6. Social listening
Mobile commerce
• M-commerce v/s eCommerce
• The basic difference between e-commerce and m-commerce is that eCommerce
shopping is done over desktops and laptops with the help of the internet and m-
commerce means that all the transactions are done via mobile devices like
smartphones, tablets. On mobile devices, you can push notifications and for
eCommerce, you can share promotional emails.
• The location tracking on eCommerce is done via the IP address and on the other hand in
m-commerce, you will be able to track location via GPS, Wi-Fi, and cellular connections.
• While in eCommerce shopping experience is highly dependent on computers and
websites which makes it lesser mobility. On m-commerce, you can do the
personalization and deliver a customized shopping experience where customers can
make prompt shopping decisions.
• What is M-Commerce?
• Mobile commerce or simply M-Commerce means engaging users in a buy
or sell process via a mobile device. For instance, when someone buys an
Android app or an iPhone app, that person is engaged in m-commerce.
There are a number of content assets that can be bought and sold via a
mobile device such as games, applications, ringtones, subscriptions etc.
• Types of Mobile Commerce
• Mobile Shopping
• Mobile Banking
• Mobile Payments
Advantages of Mobile Commerce
• Better User Experience:
• Provides a Seamless Checkout Process:
• Newer Channel to Reach out Customers:
• Builds a global customer base:
• Provide access to user data:
• Better User Experience:
Disadvantages of M Commerce

• Security Issues
• Connectivity Issues
• Shipping Cost
Online auction
• An eAuction is a transaction between sellers (the auctioneers) and
bidders (suppliers in the business-to-business scenarios) in an
electronic marketplace.
• It can occur business-to-business, business-to-consumer, or
consumer-to-consumer, and allows suppliers to bid online against
each other for contracts against a published specification.
• This kind of environment encourages competition, resulting in goods
and services being offered at their current market value.
The process of a B2B eAuction
• Requests for Proposal
Create, test, launch, receive, and score requests for proposal (RFP)
responses.
• Determine the ‘Lot Strategy’
A lot is the term for the item(s) that engage suppliers to submit bids, i.e.,
the products or services sold. A lot strategy is, therefore, the seller's
strategic combination of these items to increase competition and the
opportunity to reduce costs.
• Train Participants
A pre-auction training session allows suppliers to overview the auction
tool, answer any questions, and hold a mock auction.
The process of a B2B eAuction
• Conduct and Monitor the eAuction
Ensuring the bidding activity is running smoothly is essential. A buyer or
company representative should be ready to intervene if problems need solving.
• Evaluation of Bids
The sourcing team and user departments conduct post-auction analysis based
on predefined criteria.
• Consumer-to-Consumer eAuctions
The C2C marketplace has increased over time, too, with more companies
entering the space to facilitate C2C transactions. Popular among sellers looking
to maximize their sales potential by connecting with customers they otherwise
would not reach.
Benefits of e-aution
• Cost Savings
• Time savings translate directly into cost savings. According to Sanmarket,
there was a savings of 6.88% on average across all categories by
companies that used eAuction tools in the last quarter of 2022.
• More Efficient
• There is no need to review full proposals from suppliers and evaluate each
write-up.
• Transparency
• The open nature of bids shows the fair market value of goods and what
competitors are willing to pay for materials.
Benefits of e-aution
• Access to More Suppliers
• Online auctions provide access to a nationwide or worldwide pool of
potential vendors. This can help negate supply chain problems
experienced by using local suppliers.
• Process Standardization
• Buyers benefit by having standard methods to procure materials,
leading to more predictable spending cycles.