B2b Procurement Process

846 Words4 Pages
The most fundamental difference between these two business models, is the customer itself, and the reason for procurement; to explain: The B2B buyer’s procurement process is part of their job, and they engage in the process because they are being paid to do so, and most likely they are spending somebody’s else money in the course. The B2B procurement specialist buys supplies and services needed for a day-to-day operation of their respective organizations. Their decision process is cold, practical, and logical. On the other hand, the B2C customer engages in a – what we could describe as a – leisure shopping, where the buyer searches for sales, and good deals. Their motivations are different, they tend to purchase what is trendy, and fashionable;…show more content…
• The approval processes In the case of the B2B, the approval process usually involves more than one decision maker, it typically requires a whole chain of negotiations, and complex approval process, since organizations order large quantities, and spend vast sums of money for the supplies. Nevertheless, the B2C customer does not goes through the approval process – at least not to such a degree – in most cases there is only one decision maker, and sometimes family when purchasing more costly items. • The volume For the most part, the relationship in B2B process is usually between supplier and an organization which is engaged in some sort of business activity, that creates offerings and value for the costumer, so the volume could be in the range of hundreds, and even thousands of items. On the contrary, the customer’s buying purchase is rather limited, and the customer buys on as-needed bases, from a variety of retailers, where price usually is the major…show more content…
• Value and frequency The nature of B2B transactions is such that they often need to be repeated in future, or even at regular intervals, and for that reason the whole process must be designed in a way which facilitates easy reordering and to edit their previous orders when required. Whereas, the B2C, expects to see more variety in the offerings, more visual aids such as graphic representations, and the customer values the ease of ordering, such as one-click, which was popularized by the Amazon. How do they fundamentally differ? The way those two business models differ, lies mainly in the fact that the B2B fulfils the supply part of the equation, while the B2C fulfills the retail needs of the customer. The B2B, in most cases might require, long term post purchase, customer and technical support, while the B2C customer values ease of fulfillment, low cost shipping, and easy returns, in other words a site that is simple, easy-to-navigate, attractive and
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