Om Ltd. manufactures different models of cars and interacts with suppliers like steel, tyres, and glass through the internet. Tapan Ltd, a steel supplier to Om Ltd, also uses the i... Om Ltd. manufactures different models of cars and interacts with suppliers like steel, tyres, and glass through the internet. Tapan Ltd, a steel supplier to Om Ltd, also uses the internet for order placement, quality inspection, payment, and other activities. a) What is the nature of business they are into and identify its scope in the above lines? b) State two benefits of the nature of business identified above.
Understand the Problem
The question describes two companies, Om Ltd. and Tapan Ltd., that use the internet for various business interactions. The question asks to identify the nature of their business based on the description and state two benefits of that type of business.
Answer
A. B2B commerce in the automotive industry. B. Improved efficiency and stronger supply chain integration.
A. The nature of the business is B2B (Business-to-Business) commerce within the automotive industry. Om Ltd. interacts with suppliers like steel, tires, and glass, while Tapan Ltd. (a steel supplier) uses the internet to manage orders and payments with Om Ltd.
B. Two benefits of B2B are: Improved Efficiency: Automating processes like ordering, quality inspection, and payment reduces errors and saves time. Stronger Supply Chain Integration: Online interaction facilitates better communication and coordination between businesses, optimizing the supply chain.
Answer for screen readers
A. The nature of the business is B2B (Business-to-Business) commerce within the automotive industry. Om Ltd. interacts with suppliers like steel, tires, and glass, while Tapan Ltd. (a steel supplier) uses the internet to manage orders and payments with Om Ltd.
B. Two benefits of B2B are: Improved Efficiency: Automating processes like ordering, quality inspection, and payment reduces errors and saves time. Stronger Supply Chain Integration: Online interaction facilitates better communication and coordination between businesses, optimizing the supply chain.
More Information
B2B relationships are common within the automotive industry where manufacturers rely on many suppliers for components.
Tips
A common mistake is to confuse B2B with B2C (Business-to-Consumer).
Sources
- B2B Marketing | PDF | Market Segmentation - Scribd - scribd.com
- Purchasing Supply Management 13th Edition | Chegg.com - chegg.com
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