A foundational economic fact is that the total monetary volume of business-to-business (B2B) transactions significantly surpasses that of business-to-consumer (B2C) transactions. This is because a single finished consumer product often involves a long supply chain with multiple B2B transactions—from raw materials to manufacturing components to wholesale distribution—before the final B2C sale occurs.
Economic Scale of B2B vs. B2C Commerce
The greater volume of B2B commerce compared to B2C is a direct consequence of the complexity of modern production. Consider the fabrication of a smartphone. The final sale to a consumer is a single B2C transaction. However, leading up to that sale, numerous B2B transactions took place. The phone manufacturer bought processors from one company, screens from another, and batteries from a third. Each of those component suppliers, in turn, bought raw materials, manufacturing equipment, and logiciel from their own set of suppliers. This cascading effect, known as the supply chain, multiplies the number and value of transactions at each stage of production. Economists and policymakers track B2B activity closely as it serves as a leading indicator of economic health. A slowdown in B2B sales, particularly in sectors like manufacturing and construction, often precedes a downturn in the broader economy and consumer spending. This principle underscores why industries like logistics, corporate banking, and enterprise software are so massive, despite being largely invisible to the average consumer.
Type
Disruption
Utilisation
Precursors
- development of double-entry bookkeeping
- theories of industrial organization
- leontief’s input-output model of economics
- formalization of supply chain management as a discipline
Applications
- national economic forecasting and gdp calculation
- supply chain management and logistics planning
- investment analysis for industrial and commercial sectors
- government tax policy and trade regulation
- development of b2b payment and financing systems
Brevets :
Potential Innovations Ideas
!niveaux !!! Adhésion obligatoire
Vous devez être membre de l'association pour accéder à ce contenu.
DISPONIBLE POUR DE NOUVEAUX DÉFIS
Ingénieur mécanique, chef de projet ou de R&D
Disponible pour un nouveau défi dans un court délai.
Contactez-moi sur LinkedIn
Intégration électronique métal-plastique, Conception à coût réduit, BPF, Ergonomie, Appareils et consommables de volume moyen à élevé, Secteurs réglementés, CE et FDA, CAO, Solidworks, Lean Sigma Black Belt, ISO 13485 médical
Nous recherchons un nouveau sponsor
Votre entreprise ou institution est dans le domaine de la technique, de la science ou de la recherche ?
> envoyez-nous un message <
Recevez tous les nouveaux articles
Gratuit, pas de spam, email non distribué ni revendu
ou vous pouvez obtenir votre adhésion complète - gratuitement - pour accéder à tout le contenu restreint >ici<
Historical Context
Economic Scale of B2B vs. B2C Commerce
(if date is unknown or not relevant, e.g. "fluid mechanics", a rounded estimation of its notable emergence is provided)
Related Invention, Innovation & Technical Principles