Business to Business Exchange

[Name of the Institute]

Business to Business Exchange

Introduction

Business-to-business (B2B) exchange is a online market place where goods and services exchanges to business to business (B2B), business to consumer (B2C), and consumer to business (C2B), transaction in terms of online services. It shapes the market place of business enterprises with protection and opportunities to automotive mutual businesses processes where customers, suppliers, manufacturers and general public meet together for business purposes. This is the efficient way to interact with your business partner to avoid the misunderstanding and miscommunication. In today's world of businesses, the e-business module replaces the older method of business communication and transactions, where a sales representative visit to place the order and went take the delivery of the orders. Now the order is placed via network and internet, on the company's websites, where a customer and other business enterprises can place their specification of the order, and through the e-commerce application the payments can be made on time. The company receives the order promptly and makes it done as soon as possible basis to strengthen the business relations.

This is not completely new concept of business as General electric's Aircraft Engine division used a system, through which a customer can order a mechanical part, set off the distribution process, and pay for the transaction through the invoice, without a single piece of paper used in this process and within 45 minutes. For the development and the innovation of efficient system that can transact huge amount of money and expensive data communication and facilities need to be required to develop the system effective and efficient, this requires huge investments, software and data warehouses and internet brought down the technological barriers and cost.

Discussion

In today`s world of business the new ways are efficiently used to develop the business opportunities, to effective and timely use of such resources to provide the business partners strengthening their business relations and for profit maximization and reduction of cost. The business-to-business transactions are of three kinds, in terms of corresponding to the desired group of business where mutual interaction could be different types which are described below;

Business-to-business (B2B).

Business-to-consumer (B2C).

Consumer-to-business (C2B).

Business-to-business (B2B)

In Business-to-business transactions, one company is directly linked with the other company through the internet resources and software systems to interact for business collaborations. In business interaction between the two companies, the sharing of data, daily transaction, rates, specifications of orders, and follow ups are taken place, to obtain the business objectives and to make the available resources utilized properly inefficient and effective manner. The business-to-business electronic business system is the largest one in the industry in comparison of consumer industry. It is utilized largely by every industry with efficient and effective manner.

Many of the companies outsource the business exchanges to other vendors who can efficiently provide them the business needs in particular industry. There are two processes generally designed by the multinational firms Dell and Microsoft; one is vertical where particular industries are in line to interact with each other for business purposes, ...