Business To Business E -Commerce :
- Local LAN of business would normally follow TCP/IP protocol of internet
and is called corporate intranet. - Purchase order entered by business1 in its PC and electronically dispatched to vendor (by e-mail).
- Vendor acknowledges electronically the order.
- Vendor dispatches goods (physically) and delivery note electronically to
business1 - Business 1 can compare delivery note against order -both are in computer
readable form - Discrepancy note(if any) can be immediately sent to the vendor(business 2)
- Business 1 can carry out all local transactions using its LAN
- Local transactions are inventory update by stores - advice to accounts to
pay for goods taken into stock. - Accounts can make payment electronically to Vendor.
Implementing B2B E-Commerce requirements :
- .Agreed on formats for Purchase order, delivery note, payment order etc.
Standard known as EDI (Electronic Data Interchange Standard) is used to
send documents electronically. - Each Business must have corporate intranet and the two nets are connected by public switch telephone network (PSTN) or leased line.
- Transactions must be secure - particularly if PSTN is used.
- Secure electronic payment methods are required.
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