Benefits of Business-to-Business

Why would retailing, the ultimate Business-to-Consumer (B2C) industry, benefit from Business-to-Business (B2B) electronic commerce? Wouldn't the nature of retailing make it unsuitable for B2B transactions?
Considering the depth and breadth of products and supplies used by retailers, it is ripe for B2B transactions. Using B2B ecommerce can help lower procurement costs. Working in conjunction with other retailers can introduce an economy of scale. Being connected to suppliers creates an efficient purchasing process. Business-to-Business transactions can improve cycle times and productivity.
Here are just a few of the possible uses of B2B sites by retailers:
Consolidating orders with other retailers to obtain discounts from manufacturers.
Auction off excess inventory for quick liquidation, freeing inventory dollars.
Exchange assets or sell them for cash.
Sell back-hauling services for the trucks used to distribute goods to the stores.
Arrange to share transportation costs on LTL shipments.
Post requests for proposal (RFP) or request for quote (RFQ) in one place saving time and effort while broadening response.
Some significant retailers and retail organizations are jumping on the B2B bandwagon. The National Retail Federation announced in January that it was joining in a B2B site with i2i Retail. Then, just one day after the first part of this series ran, Sears, Roebuck and Co. and Carrefour Supermarche announced plans for a major B2B site in conjunction with Oracle.
The two retail giants, Sears and Carrefour, are working with Oracle to launch a global business-to-business online exchange serving the retail industry. GlobalNetXchange will offer a global retail goods marketplace, supply chain management, and other collaborative solutions. Initially focusing on Sears and Carrefour's combined $80 billion supply chain purchases from 50,000 suppliers, partners and distributors, Sears and Carrefour expect GlobalNetXchange will significantly reduce their purchasing expenses and enhance supply chain efficiencies with their trading partners.
The ability of Internet marketplaces to connect international and geographical markets without major infrastructure investments makes it ideal for large and small retailers alike. In addition, B2B sites can offer services that make them valuable to retailers:
Content, such as product knowledge, news, and industry articles.
Buyer and seller ratings.
Logistics services.
Escrow and financial settlement.
Back-end integration with the retailer's computer systems.