IBM SG24-6320-00 manual Value Chain, B2B direct, Demand chain

6320ch_sum_of_changes.fm Draft Document for Review July 28, 2004 7:33 pm

In this model, the business can be a retailer, a manufacturer, or any other business that sells goods or provides services directly to consumers.

B2B direct

The B2B direct model supports commerce transactions between two businesses or parties. The transactions may involve products, services, or information exchange. In the B2B direct model, customers may be business buyers, resellers, distributors, or trading partners. The customers obtain information about the products or servers and are able to purchase or otherwise obtain the goods or services directly from the seller.

2.5.2 Value Chain

Value chains support transactions involving multiple enterprises or parties. Products, goods, services, or information are delivered through the parties of the value chain from producers to end users. A value chain also has relationship and administrative aspects, that is, you can manage the relationship of the partners or enterprises in your value chain, as well as offer some administrative services to those parties. As a result, value chains must manage the two sides of their businesses: their customers and direct sales, and their channel partners and suppliers. Each of these sides requires its own management channels and practices.

In order to manage their relationships with partners or suppliers, value chain business models usually include a hub (in WebSphere Commerce known as a hub store). Value chain administrators can administer the operational aspects of the value chain in the hub store, including enabling partners or suppliers to participate in the value chain, that is, registering them, setting them up, creating collaborations. Partners and suppliers can also access the hub store to complete administrative tasks such as registering users.

In order to sell directly to customers (direct sales), value chains usually include a store front, where customers can purchase their good or services directly. WebSphere Commerce supports the transactions through, and relationship management of the following two types of value chains:

Demand chain

A demand chain is composed of the organizations that sell a business’ goods or services. An example of a demand chain would start with the buyers who make the purchase transaction, the resellers who sell the manufacturer’s goods, and the manufacturer who produce the goods. Direct sales channels are also supported by demand chains. In direct sales channels, the demand chain owner sells directly to customers or business partners.

24Keeping Commerce Applications Updated WebSphere Commerce 5.1 to 5.6 Migration Guide