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Business to business - b2b - what is it, main concepts

Posted: Wed Dec 04, 2024 9:40 am
by olivia25
Classic e-business is officially called B2B (Business to Business) and refers to relationships between companies.

B2B includes preparing offers and orders, confirming receipt of ordered goods or services, payments, making transactions, searching for offers, preparing transaction documentation and marketing. B2B is a network of relationships connecting a company, its partners, intermediaries, suppliers, distributors, as well as points of sale and provision of services.

Individual trade intermediaries, such as manufacturers, wholesalers and suppliers, create supply chain links that can be expanded without limits. Therefore, the administration of such an yemen b2b leads extensive network is improved by automatic data transfer and the connection of information about sales and delivery dates. Many other elements can be added to the chain: planning, forecasting, storage, production, service. Internet technologies facilitate the management of these processes.


E-marketplace in B2B trade
Horizontal markets affect a variety of zones. The goods and services sold in horizontal markets are usually indirect goods or MRO. Horizontal markets are created by global corporations and market giants.

Vertical markets exchange goods within a single trade sector (e.g. cosmetics industry). In this market, goods directly related to production (direct goods) are sold.
Types of Purchases in B2B Trade
eProcurement is the organization of procurement stages based on system solutions that improve cooperation between contractors. It concerns all procurement processes from placing an order to its financing. Processing and circulation of documentation is automated thanks to electronic technologies.

The auction-tender model is a type of model used for one-time purchases of goods and services or for negotiating contract terms for recurring purchases.


Consumers are increasingly becoming convinced of services offered electronically. This may result in the rapid development of e-services in the near future. However, specialized network services require the user to have access to specific software.


Types of e-services
digital – access for registered and authorized users of a specific portal and internet platform. The Internet user uses e-services in accordance with the agreement or the portal regulations.

software that functions in the user's (company's) IT environment - the user who wants to use the application must first purchase a license for it, and then can install it and enjoy using it. It is possible to adjust the application's functionality to the user's needs based on the user's agreement with the licensor

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leased applications – specific services are made available in ASP mode, they do not require the purchase of a license, but only the conclusion of an e-service lease agreement. The application is stored on the provider's server, so the user uses it via the Internet using a browser or terminal. The method of using software in ASP mode belongs to the group of IT outscoring. Outscoring is understood as directing IT orders to an external company. Application lease methods are common on the IT services market and constitute a significant part of the revenues for e-enterprises.


Application Service Provider
Application Service Provider , abbreviated ASP is defined as services of leasing computer applications via the Internet. It refers to the methods of settling the application provider with its user on the basis of a license. In this model, there are no prepayments for the license for any period, but fees are paid for use. Based on the type of financial settlements for ASP, the name On-demand software was adopted , which in Polish means Software on Demand .

After technological improvements to the HTTP protocol, developers have noticed an increasing interest in the On-Demand Software license. Fees for this type of software usually relate to: the period of use, the size of the disk capacity, and the amount of traffic generated.


Among the numerous advantages of ASP, the following should be highlighted:
exemption from prepayment for software that does not burden cash flow

freedom of use, no need to purchase any additional licenses when using the application more frequently, or to purchase licenses "per seat" or "per user"

no requirement to update the application, which consequently exempts you from additional fees

such applications do not require compatibility with a variety of working environments and devices.

ASP has a few disadvantages, they are:
requirement for access to an internet connection

you cannot customize the functionality of the application in the same way as in a custom-made application

low availability of specialized applications.