What? is B2B supply chain Management ?

What? Is B2B Supply Chain Management

• Business-to-business (B2B) is a transaction or business conducted between one business
and another, such as a wholesaler and retailer.
• B2B transactions tend to happen in the supply chain, where one company will purchase raw
materials from another to be used in the manufacturing process.
 What do you mean by retailer?

• A retailer is a person or business that you purchase goods from.

• Retailers typically don't manufacture their own items.
• They purchase goods from a manufacturer or a wholesaler and
sell these goods to consumers in small quantities.
• some giants such as Wal-Mart, Best Buy, and Target. These are
very familiar and famous names.
• However, the smallest kiosks at your local mall are also retail.
Amazon, Netflix, and eBay are good examples of online
retailers.
 Who is called as wholesaler?

• A wholesaler is a person or business that sells items to retail stores

that will then sell them to individual customers for a higher price.
• You could also call a wholesaler a distributer.
• Anyone who sells goods to other businesses, rather than directly to
customers, is a wholesaler.
• What are the 3 types of wholesalers?
• The three categories used in the Census of Wholesale Trade are:
• 1) merchant wholesalers;
• 2) agents, brokers, and commission merchants;
• 3) manufacturers' sales branches and offices
• Supply chain management (SCM) a channel of goods distribution, which starts
with the supplier of raw materials or components, moves through an
operational process to the distributor and retailer, and finally to the
consumer.”
 The Five Components of Supply Chain Management
• These two terms and their relationship can be illustrated as follows:
 Inbound Logistics, Outbound logistics Reverse
logistics
• What Is Inbound Logistics?
• Inbound logistics is the way materials and other goods are brought into a company.
• This process includes the steps to order, receive, store, transport and manage
incoming supplies

• Outbound logistics
• are all about moving finished inventory out of a supply chain — that is, moving
inventory out of storage, fulfilling orders, and delivering those orders to end
customers.

• Reverse logistics or reverse distribution

• is a stage in the supply chain in which the product is returned from the point of sale
to the manufacturer or distributor for recovery, repair, recycling, or disposal.
• Component 1: Planning

• One of the biggest questions procurement teams need to ask is whether the
organization plans to manufacture goods themselves or they will buy ready-made
goods.

• In the event that the company manufactures finished products, the next question
that arises is where will raw materials be sourced? Will it be from local, regional,
or international suppliers?

• This question is also posed if the company is purchasing ready-made products

and passing them to the consumer in a finished state. From where will these
products be obtained?
• Component 2: Sourcing

• Following on the heels of the first component is the second step which involves sourcing.

• This step is one of the most critical of the entire supply chain as it is at this stage that the
biggest cost savings can be achieved.

• Choose the right vendor offering the ideal price and who has the capacity to deliver
required volumes in a timely fashion and you’ve struck gold.

• Select an incompetent supplier and this will affect operations along the entire supply
chain.

• This process will also include the need to not only find vendors but evaluate and qualify
them.
• Component 3: Inventory
• Having several suppliers so you can secure enough raw materials and or
products so you can remain fully stocked up is extremely important.

• 2020 demonstrated the importance of getting this component correct.

According to Retail Next, 28% of surveyed businesses suffered severe
shortages and even went out-of-stock of certain key items. 56% of these
enterprises had to renegotiate contracts.

• The ability to carefully manage inventory and ensure that manufacturing

schedules are in alignment with consumer demand is as much a skill as it is an
art.
• Component 4: Production and Transportation

• The next important component in supply chain management is production,

warehouse, and transportation.

• This element of the supply chain takes a look at what is needed to ensure that
the organization is producing the correct volume of products and that product
quality meets established standards.

• This component also factors in where the products will be kept i.e. storage in
warehouses as well as transportation from said depots to stores that will retain
the products
• Component 5: Return of Goods

• What do you do when a customer returns a product that’s faulty? What is the
protocol to handle such an incident?

• These questions are answered in the final component of the supply chain
‘Return of Goods’.

• Because customer satisfaction is extremely important, it is imperative that there

be a clearly defined protocol surrounding the returns process
•
• The more efficient the return of faulty product processes the higher your
customer satisfaction ratings.