E-commerce Issues for Small Business - Dissertation Example

As the paper declares Business to Business, Electronic Commerce has brought about a sea change in the way transactions are carried out between different entities in business. B2B provides a way for manufacturers to develop products for clients, circumventing the traditional channels involved in doing business. The manufacturer, vendors and customers can directly communicate with each other rather than letting intermediaries mediate. In facilitating easy access, E Commerce provides a cost saving method for different parties to a business to develop maximum productivity.

The geographical barriers to conducting trade or manufacturing no longer exist. A manufacturer can sell or market through the Internet on a ‘virtual’ platform but will make huge profits in the real world as he can now get through to a buyer or supplier any where in the world. According to the research findings specifically E Commerce integrates telecommunications, computers and stream lined work processes. Business to Customer e commerce enables customers to directly get in touch with manufacturers.

B2B helps organizations communicate. In both forms of this system, parties to a transaction avoid the unnecessary overhead costs and the impact of the technology does more to expand the business than before. The digitized transaction will require taxation and customs regulations to be reviewed to adapt to this change. In many parts of the world, resources are inadequate or stretched to produce mediocre good, which do not find worldwide markets. Even those firms, which aspire to international reach for their products, are hampered by poor infrastructure and unnecessary problems on the way.

Additionally there are government regulations, which have not reacted to changing technological environments as rapidly as they should. Partly this may be due to political compulsions especially in developing countries, which impede quick decisions and action. There are developing countries, which could be serious players in the B2B scenario but are not cost competitive enough. Supply Chain Management (SCM) has been an issue in developing countries where it is a relatively new tool for production enhancement.

The SCM model is delivered through channels using information technology and information exchange. For example, instead of having to actually send along inventory, a manufacturer can rely on the vendor managed inventory software for B2B, which relies on a certain level of information substituting actual inventory. Manufacturers principally use B2B processes, to pass down to suppliers their requirements of their manufacturing program. A traditional supply management program would have involved intricate formalities to be fulfilled.

Electronic trading improves productivity, greatly