Business-to-business ( B2B or, in some countries, BtoB ) is a situation where one business makes a commercial transaction with another. This typically occurs when:
115-491: Business-to-Business companies represent a significant part of the United States economy . This is especially true in firms with 500 employees and above, of which there were 19,464 in 2015, where it is estimated that as many as 72% are businesses that primarily serve other businesses. One possible argument of economics to explain the levels of Business-to-Business activity is that it allows for business segmentation. B2B
230-753: A legal right , with the others being Papua New Guinea , Suriname and Liberia . In 2014 and again in 2020, the International Trade Union Confederation graded the U.S. a 4 out of 5+, its third-lowest score, on the subject of powers and rights granted to labor unions . Similarly, a 2023 study published by Oxfam found that the United States ranks among the worst among developed countries for labor protections . Some scholars, including business theorist Jeffrey Pfeffer and political scientist Daniel Kinderman, posit that contemporary employment practices in
345-423: A "supply chain". At the end of the supply chain, materials and finished products only flow there because of the customer behaviour at the end of the chain; academics Alan Harrison and Janet Godsell argue that "supply chain processes should be coordinated in order to focus on end customer buying behaviour", and look for "customer responsiveness" as an indicator confirming that materials are able to flow "through
460-520: A B2B context, large companies may have many commercial, resource and information advantages over smaller businesses. The United Kingdom government, for example, created the post of Small Business Commissioner under the Enterprise Act 2016 to "enable small businesses to resolve disputes" and "consider complaints by small business suppliers about payment issues with larger businesses that they supply." The principal difference between B2B and B2C
575-588: A bank, for example, may play a supporting role in certain supply chains, but acts as either the customer or the nearest supplier to the customer in the supply chain for security printing . Brown et al. refer to supply chains as either "loosely coupled" or "tightly coupled": Cutting-edge companies are swapping their tightly coupled processes for loosely coupled ones, making themselves not only more flexible but also more profitable . These ideas refer to two polar models of collaboration: tightly coupled, or "hard-wired", also known as "linked", collaboration represents
690-440: A close relationship between a buyer and supplier within the chain, whereas a loosely-coupled link relates to low interdependency between buyer and seller and therefore greater flexibility. The Chartered Institute of Procurement & Supply 's professional guidance suggests that the aim of a tightly coupled relationship is to reduce inventory and avoid stock-outs . There are a variety of supply-chain models, which address both
805-409: A company's decision-making on the number of suppliers it will engage with for each product or service as an important aspect of the design of a supply chain. Determining the number of suppliers logically precedes an RFP process for determining which suppliers will form part of the supply chain. Morgan refers to an "n + 1 rule" example in the business practice of IT component supplier Intel , whereby
920-565: A company. Starting in the 1990s, several companies chose to outsource the logistics aspect of supply-chain management by partnering with a third-party logistics provider (3PL). Companies also outsource production to contract manufacturers. Technology companies have risen to meet the demand to help manage these complex systems. Cloud-based SCM technologies are at the forefront of next-generation supply chains due to their impact on optimization of time, resources, and inventory visibility. Cloud technologies facilitate work being processed offline from
1035-585: A fifth of the global total. The U.S. not only has the largest internal market for goods, but also dominates the services trade. Total U.S. trade was $ 4.2 trillion in 2018. Of the world's 500 largest companies , 121 are headquartered in the U.S. The U.S. has the world's highest number of billionaires , with total wealth of $ 3.0 trillion. U.S. commercial banks had $ 22.9 trillion in assets in December 2022. U.S. global assets under management had more than $ 30 trillion in assets. During
1150-516: A flat retail rate for each item sold. Time is also different as B2B has a slower process than B2C which is concluded in shorter periods (that could be minutes or days). Business-to-business generally requires an upfront investment whereas business-to-consumers do not need a business to spend money on infrastructure. The last difference mentioned here is that in B2B, lagging in the digital transformation, has to deal with back-office connectivity and invoicing
1265-405: A fundamentally new system. This leads to a panarchical interpretation of a supply chain, embedding it into a system of systems , allowing to analyze the interactions of the supply chain with systems that operate at other levels (e.g. society, political economy, planet Earth). For example, these three components of resilience can be identified in relation to the 2021 Suez Canal obstruction , when
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#17327806708361380-438: A global map of the organization's supply network. In the 1980s, the term supply-chain management (SCM) was developed to express the need to integrate the key business processes, from end user through original suppliers. Original suppliers are those that provide products, services, and information that add value for customers and other stakeholders. The basic idea behind SCM is that companies and corporations involve themselves in
1495-422: A hire-and-fire policy, and job security is relatively low. Among OECD nations, the U.S. has a highly efficient and strong social security system ; social expenditure stood at roughly 30% of GDP . The United States is the world's largest producer of petroleum and natural gas . In 2016, it was the world's largest trading country and second largest manufacturer , with American manufacturing making up
1610-593: A measure of both production and income, grew by 2.3% in 2017, vs. 1.5% in 2016 and 2.9% in 2015. Real GDP grew at a quarterly annualized rate of 2.2% in Q1 2018, 4.2% in Q2 2018, 3.4% in Q3 2018, and 2.2% in Q4 2018; the Q2 rate was the best growth rate since Q3 2014, and the overall yearly GDP growth of 2.9% in 2018 was the best performance of the economy in a decade. In 2020, the growth rate of
1725-405: A mobile app which solves the common issue of inventory residing in areas with no online coverage or connectivity. Supply chain managers are under constant scrutiny to secure the best pricing for their resources, which becomes a difficult task when faced with the inherent lack of transparency. Cost benchmarking helps to identify competitive pricing within the industry but benchmarking across
1840-637: A number of different partners and suppliers, while B2C results in more seamless transactions as options, such as cyber-cash, allows the business to accept a wider variety of payment options. B2B typically only allows payment via credit card or invoice, making the purchasing process longer and more expensive than with B2C. B2B, as there are normally bigger amounts involved over longer periods of time, usually have higher costs than B2C, which consists of quick, daily transactions. Businesses typically want to buy on net terms, meaning that B2B merchants have to wait weeks, if not months to get paid for their goods or services. As
1955-422: A product design is completed, it drives the structure of the supply chain, limiting the flexibility of engineers to generate and evaluate different (and potentially more cost-effective) supply-chain alternatives. Design for Supply Chain is described as a process that aims to drastically reduce the product life cycle costs ... improve product quality, improve efficiency and improve profitability for all partners in
2070-440: A range of supply chain performance factors has been recommended as best practice. The SCOR model contains more than 150 key indicators which measure the performance of supply chain operations: see also Supply chain operations reference#Performance measurements . Debra Hofman has noted that "measuring supply chain performance is not a new practice. Most companies today measure at least some aspect of their supply chain and understand
2185-605: A recession in 2001 with an unusually slow jobs recovery, with the number of jobs not regaining the February 2001 level until January 2005. This "jobless recovery" overlapped with the building of a housing bubble and arguably a wider debt bubble, as the ratio of household debt to GDP rose from a record level of 70% in Q1 2001 to 99% in Q1 2008. Homeowners were borrowing against their bubble-priced homes to fuel consumption, driving up their debt levels while providing an unsustainable boost to GDP. When housing prices began falling in 2006,
2300-539: A result of the worldwide pandemic. Social distancing measures which took effect in March 2020, and which negatively impacted the demand for goods and services, resulted in the US GDP declining at a 4.8% annualized rate in the first quarter, the steepest pace of contraction in output since the fourth quarter of 2008. US retails sales dropped a record 8.7% in March alone. The US airline industry had also been hit hard, seeing
2415-476: A result, smaller businesses with less capital often struggle to stay afloat. In B2B, brand reputations greatly depend on the personal relationship between businesses. On the other hand, in B2C, the business's reputation is often fueled by publicity through the media. In many cases, the overall volume of B2B (business-to-business) transactions is much higher than the volume of B2C transactions. The primary reason for this
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#17327806708362530-487: A sequence of supply chain processes in order to meet end customer buying behaviour". Many of the exchanges encountered in the supply chain take place between varied companies that seek to maximize their revenue within their sphere of interest but may have little or no knowledge or interest in the remaining players in the supply chain. More recently, the loosely coupled, self-organizing network of businesses who cooperate in providing product and service offerings has been called
2645-697: A sharp decline in its revenues. The COVID-19 recession has been widely described as the most severe global economic downturn since the Great Depression and "far worse" than the Great Recession . In May 2020, CNN gave an analysis based on unemployment data that the US economy was perhaps the worst that it had been since the 1930s. By May 8, the US had reached a record 14.7 percent unemployment, with 20.5 million jobs lost in April. The Chairman of
2760-488: A ship blocked the canal for several days. Persistence means to "bounce back"; in our example it is about removing the ship as quickly as possible to allow "normal" operations. Adaptation means to accept that the system has reached a "new normal" state and to act accordingly; here, this can be implemented by redirecting ships around the African cape or use alternative modes of transport. Finally, transformation means to question
2875-515: A supply chain by exchanging information about market demand , distribution capacity and production capabilities. Keith Oliver , a consultant at Booz Allen Hamilton , is credited with the term's invention after using it in an interview for the Financial Times in 1982. The term was used earlier by Alizamir et al. in 1981, and Burns and Sivazlian in 1978. If all relevant information is accessible to any relevant company, every company in
2990-585: A supply chain seeks to match demand with supply and do so with minimal inventory . Various aspects of optimizing the supply chain include liaising with suppliers to eliminate bottlenecks; sourcing strategically to strike a balance between lowest material cost and transportation , implementing just-in-time techniques to optimize manufacturing flow; maintaining the right mix and location of factories and warehouses to serve customer markets; and using location allocation, vehicle routing analysis, dynamic programming , and traditional logistics optimization to maximize
3105-507: A supply chain, such as wholesale and retail determine their break-even point by considering transaction costs , relative to market price. Additionally, there are financial costs associated with all the stages of a supply chain model. The Global Supply Chain Forum has introduced an alternative supply chain model. This framework is built on eight key business processes that are both cross-functional and cross-firm in nature. Each process
3220-514: A supply relationship with upstream suppliers, including manufacturers, and form a sales relationship. As an example, Dell works with upstream suppliers of integrated circuit microchips and computer printed circuit boards (PCBs) . A vertical B2B website can be similar to the enterprise's online store. Through the website, the company can promote its products vigorously, more efficiently and more comprehensively which enriches transactions as it helps their customers understand their products well. Or,
3335-477: A tool for regulating the overall pace of economic activity. The U.S. economy grew by an average of 3.8% from 1946 to 1973, while real median household income surged by 74% (or 2.1% a year). Since the 1970s, several emerging countries have begun to close the economic gap with the United States. In most cases, this has been due to moving the manufacture of goods formerly made in the U.S. to countries where they could be made for sufficiently less money to cover
3450-482: A year (often seasonally). The supply chain for clothing often requires constant analysis of new fashion trends to manage the quantity needed for various markets. Supply chain security has become particularly important in recent years. As a result, supply chains are often subject to global and local regulations. In the United States, several major regulations emerged in 2010 that have had a lasting impact on how global supply chains operate. These new regulations include
3565-517: Is a high-level, industry-neutral enterprise process model that allows organizations to see their business processes from a cross-industry viewpoint. The PCF was developed by APQC and its member organizations as an open standard to facilitate improvement through process management and benchmarking, regardless of industry, size, or geography. The PCF organizes operating and management processes into 12 enterprise-level categories, including process groups, and over 1,000 processes and associated activities. In
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3680-409: Is also the world's fourth largest high-technology exporter . The U.S. ranks second in the world by number of patent applications . Consumer spending comprised 68% of the U.S. economy in 2022, while its labor share of income was 44% in 2021. The U.S. has the world's largest consumer market . The nation's labor market has attracted immigrants from all over the world and its net migration rate
3795-680: Is among the highest in the world. The U.S. is one of the top-performing economies in studies such as the Ease of Doing Business Index , the Global Competitiveness Report , and others. The economic history of the United States began with British settlements along the Eastern seaboard in the 17th and 18th centuries. After 1700, the United States gained population rapidly, and imports as well as exports grew along with it. Africa, Asia, and most frequently Europe, contributed to
3910-519: Is both the largest company and the largest private sector employer in the world. Walmart employs 2.1 million people worldwide and 1.4 million in the U.S. alone. There are nearly thirty million small businesses in the U.S.. Minorities such as Hispanics , African Americans, Asian Americans, and Native Americans (35% of the country's population), own 4.1 million of the nation's businesses. Minority-owned businesses generate almost $ 700 billion in revenue, and they employ almost five million workers in
4025-481: Is fueled by high productivity , well developed transportation infrastructure , and extensive natural resources . Americans have the sixth highest average household and employee income among OECD member states. In 2021, they had the highest median household income . The U.S. has one of the world's highest income inequalities among the developed countries . The largest U.S. trading partners are Canada , Mexico , China , Japan , Germany , South Korea ,
4140-526: Is in terms of creating demand. In other words, it is the ability of a product's design to generate demand by satisfying customer expectations. But product design affects not only demand generation but also manufacturing processes, cost, quality, and lead time. The product design affects the associated supply chain and its requirements directly, including manufacturing, transportation, quality, quantity, production schedule, material selection, production technologies, production policies, regulations, and laws. Broadly,
4255-463: Is increasingly being utilized in supply chain management, especially in the strategic purchasing and supply management sector. Effective application of big data can improve the performance of supply chain activities through improved decision-making capabilities. Moore et al. note a trend towards strategic supply-base reduction as a mechanism for leading businesses to reduce costs and improve supplier-related performance, and similarly Ogden identifies
4370-448: Is managed by a cross-functional team including representatives from logistics, production, purchasing, finance, marketing, and research and development. While each process interfaces with key customers and suppliers, the processes of customer relationship management and supplier relationship management form the critical linkages in the supply chain. The American Productivity and Quality Center (APQC) Process Classification Framework (PCF) SM
4485-402: Is more significant than ever. In addition, as supply, and therefore competition, among companies for the limited market demand increases and as pricing and other marketing elements become less distinguishing factors, product design likewise plays a different role by providing attractive features to generate demand. In this context, demand generation is used to define how attractive a product design
4600-551: Is often contrasted with business-to-consumer (B2C) trade. B2B involves specific challenges at different stages. At their formation, organizations should be careful to rely on an appropriate combination of contractual and relational mechanisms. Specific combinations of contracts and relational norms may influence the nature and dynamics of the negotiations between firms. Vertical B2B is generally oriented to manufacturing or business. It can be divided into two directions: upstream and downstream. Producers or commercial retailers can have
4715-409: Is that in a typical supply chain there will be many B2B transactions involving subcomponents or raw materials , and only one B2C transaction, specifically the sale of the finished product to the end customer. For example, an automobile manufacturer makes several B2B transactions such as buying tires, glass for windows, and rubber hoses for its vehicles. The final transaction, a finished vehicle sold to
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4830-489: Is that the first one refers to commerce transactions between manufacturer and retailer, and the second one it is the retailer supplying goods to the consumer. In B2B there are business people on both sides, whereas in B2C there is normally one business person and one consumer. In the first case, the decision is pursued by need (because the other business needs it), and in the second case, they are expectations rather than needs. B2B has many sellers and different stores, whereas B2C,
4945-526: Is the currency of record most used in international transactions and is the world's reserve currency , backed by a large U.S. treasuries market , its role as the reference standard for the petrodollar system , and its linked eurodollar . Several countries use it as their official currency and in others it is the de facto currency . Since the end of World War II , the economy has achieved relatively steady growth, low unemployment and inflation, and rapid advances in technology . The American economy
5060-428: Is usually just one supplier. B2B concentrates on raw data for another company, but B2C focuses on producing something for consumers. A B2B transaction entails direct-sourcing contract management, which involves negotiating terms that establish prices and various other factors such as volume-based pricing, carrier and logistics preferences, etc. B2C transaction is clearer, it has spot sourcing contract management that offers
5175-702: The extended enterprise , and the use of the term "chain" and the linear structure it appears to represent have been criticized as "harder to relate to the way supply networks really operate. A chain is actually a complex and dynamic supply and demand network. As part of their efforts to demonstrate ethical practices , many large companies and global brands are integrating codes of conduct and guidelines into their corporate cultures and management systems . Through these, corporations are making demands on their suppliers (facilities, farms, subcontracted services such as cleaning, canteen, security etc.) and verifying, through social audits , that they are complying with
5290-458: The 2013 Savar building collapse with more than 1,100 victims have led to widespread discussions about corporate social responsibility across global supply chains. Wieland and Handfield (2013) suggest that companies need to audit products and suppliers and that supplier auditing needs to go beyond direct relationships with first-tier suppliers (those who supply the main customer directly). They also demonstrate that visibility needs to be improved if
5405-480: The British Empire at the top. The economy maintained high wages, attracting immigrants by the millions from all over the world. In the 1820s and 1830s, mass production shifted much of the economy from artisans to factories. New government regulations strengthened patents. Early in the 19th century, more than 80 percent of Americans engaged in farming. Most of the manufacturing centered on the first stages of
5520-603: The European Commission issued a Communication concerning "a better functioning food supply chain in Europe", addressing the three sectors of the European economy which comprise the food supply chain: agriculture, food processing industries, and the distribution sectors. An earlier interim report on food prices (published in December 2008) had already raised concerns about the food supply chain. Arising out of
5635-498: The Great Recession of 2008, the U.S. economy suffered a significant decline. The American Reinvestment and Recovery Act was enacted by the United States Congress, and in the ensuing years the U.S. experienced the longest economic expansion on record by July 2019. The New York Stock Exchange and Nasdaq are the world's largest stock exchanges by market capitalization and trade volume . The U.S. has
5750-570: The Importer Security Filing (ISF) and additional provisions of the Certified Cargo Screening Program. EU's draft supply chain law are due diligence requirements to protect human rights and the environment in the supply chain. With the increasing globalization and easier access to different kinds of alternative products in today's markets, the contribution of product design to generating demand
5865-501: The U.S. president and Congress . The "Baby Boom" saw a dramatic increase in fertility in the period 1942–1957; it was caused by delayed marriages and childbearing during the depression years, a surge in prosperity, a demand for suburban single-family homes (as opposed to inner city apartments), and new optimism about the future. The boom peaked around 1957 and then began to fade. A period of high inflation, interest rates, and unemployment after 1973 weakened confidence in fiscal policy as
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#17327806708365980-488: The US Federal Reserve , Jerome Powell , warned that it may take "an extended time" before the US economy fully recovers from weak economic growth, due to the pandemic, and that in the foreseeable future the US can expect "low productivity growth and stagnant incomes". By May 31, 2020, more than forty million Americans had filed for unemployment benefits. By June 2020, the slump in US continental flights due to
6095-523: The United Kingdom , Taiwan , India , and Vietnam . The U.S. is the world's largest importer and second largest exporter . It has free trade agreements with several countries , including Canada and Mexico (through the USMCA ), Australia, South Korea, Israel, and several others that are in effect or under negotiation. The U.S. has a highly flexible labor market , where the industry adheres to
6210-410: The financial crisis of 2007–2008 , when GDP fell by 5.0% from the spring of 2008 to the spring of 2009. Other significant recessions took place in 1957–1958, when GDP fell 3.7% following the 1973 oil crisis , with a 3.1% fall from late 1973 to early 1975, and in the 1981–1982 recession, when GDP dropped by 2.9%. Recent, mild recessions have included the 1990–1991 downturn, when output fell by 1.3%, and
6325-549: The required standard . A lack of transparency in the supply chain can bar consumers from knowledge of where their purchases originated and facilitate socially irresponsible practices. In 2018, the Loyola University Chicago 's Supply and Value Chain Center found in a survey that 53% of supply chain professionals considered ethics to be "extremely" important to their organization. Marshall L. Fisher (1997) asks
6440-538: The 1960s, 2.1% in the 1970s, 2.4% in the 1980s, 2.2% in the 1990s, 0.7% in the 2000s, and 0.9% from 2010 to 2017. Reasons for slower growth since 2000 are debated by economists and may include aging demographics, slower population and growth in labor force, slower productivity growth, reduced corporate investment, greater income inequality reducing demand, lack of major innovations, and reduced labor power. The U.S. ranked 20th out of 220 countries in GDP per capita in 2017. Among
6555-437: The 19th century, recessions frequently coincided with financial crises . The Panic of 1837 was followed by a five-year depression, marked by bank failures and unprecedented unemployment. Because of the great changes in the economy over the centuries, it is difficult to compare the severity of modern recessions to that of early recessions. Recessions after World War II appear to have been less severe than earlier recessions, but
6670-417: The 2001 recession, in which GDP slid by 0.3%; the 2001 downturn lasted just eight months. The most vigorous, sustained periods of growth, on the other hand, took place from early 1961 to mid-1969, with an expansion of 53% (5.1% a year), from mid-1991 to late 2000, at 43% (3.8% a year), and from late 1982 to mid-1990, at 37% (4% a year). Debt held by the public, a measure of national debt, has risen throughout
6785-525: The 21st century. Rising from 31% in 2000 to 52% in 2009, and reaching 77% of GDP in 2017, the U.S. ranked 43rd highest in debt out of 207 countries. In the first two quarters of 2020 amid Donald Trump 's presidency, the U.S. economy suffered major setbacks beginning in March 2020, due to the novel coronavirus and having to "shut-down" major sectors of the American economy. As of March 2020, US exports of automobiles and industrial machines had plummeted as
6900-439: The B2B buyers surveyed in their study stating that they preferred online purchasing. In B2B commerce, it is often the case that the parties to the relationship have comparable negotiating power, and even when they do not, each party typically involves professional staff and legal counsel in the negotiation of terms, whereas B2C is shaped to a far greater degree by economic implications of information asymmetry . However, within
7015-676: The Federal Reserve's 2% target rate. The following table shows the main economic indicators in 1980–2023 (with IMF staff estimates in 2024–2028). Inflation below 5% is in green. (in Bil. US$ PPP) (in US$ PPP) (in Bil. US$ nominal) (in US$ nominal) (real) (in Percent) (in Percent) (in % of GDP) U.S. nominal GDP was $ 19.5 trillion in 2017,
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#17327806708367130-513: The GDP has started to drop as a result of the COVID-19 pandemic , resulting in the GDP shrinking at a quarterized annual growth rate of −5.0% in Q1 2020 and −32.9% in Q2 2020, respectively. As of 2014, China passed the U.S. as the largest economy in GDP (PPP) terms, measured at purchasing power parity conversion rates. The U.S. had the highest GDP (PPP) figures for more than a century prior to that milestone; China has more than tripled
7245-400: The U.S. Americans have the highest average employee income among OECD nations. The median household income in the U.S. as of 2008 is $ 52,029. About 284,000 working people in the U.S. have two full-time jobs and 7.6 million have part-time ones in addition to their full-time employments. Out of all working individuals in the U.S. , 12% belong to a labor union and most union members work for
7360-506: The U.S. growth rate for each of the past 40 years. As of 2017, the European Union as an aggregate had a GDP roughly 5% larger than the U.S., although the former is a political union not a country. The United States', however, remained the world's largest economy with the highest nominal GDP. Real GDP per capita (measured in 2009 dollars) was $ 52,444 in 2017 and has been growing each year since 2010. It grew 3.0% per year on average in
7475-426: The U.S. labor force in 2017, the fourth largest labor force in the world behind China, India, and the European Union. The government (federal, state and local) employed 22 million in 2010. Small businesses are the nation's largest employer, representing 37% of American workers. The second-largest share of employment belongs to large businesses employing 36% of the U.S. workforce. White collar workers comprise 44% of
7590-635: The United States Employment The United States is a highly developed mixed economy . It is the world's largest economy by nominal GDP ; it is also the second largest by purchasing power parity (PPP), behind China . It has the world's sixth highest per capita GDP (nominal) and the eighth highest per capita GDP (PPP) as of 2024. The U.S. accounted for 26% of the global economy in 2023 in nominal terms, and about 15.5% in PPP terms. The U.S. dollar
7705-477: The United States relating to the increased performance pressure from management, and the hardships imposed on employees such as toxic working environments, precarity , and long hours, could be responsible for 120,000 excess deaths annually, making the workplace the fifth leading cause of death in the United States. As of December 2017, the unemployment rate in the U.S. was 4.1% or 6.6 million people. The government's broader U-6 unemployment rate, which includes
7820-538: The assumptions of globalization, outsourcing, and linear supply chains and to envision alternatives; in this example this could lead to local and circular supply chains. Supply chain resilience has been identified as an important business issue. The United Kingdom's Confederation of British Industry reported in 2014 that a significant number of businesses had reshored parts of their supply chain to European locations, with many identifying supply chain resilience as "a key factor in their decision to do so". Incidents like
7935-406: The bankruptcy of Lehman Brothers and bailouts of several other financial institutions. The Bush administration (2001–2009) and Obama administrations (2009–2017) applied banking bailout programs and Keynesian stimulus via high government deficits, while the Federal Reserve maintained near-zero interest rates. These measures helped the economy recover, as households paid down debts in 2009–2012,
8050-816: The consumer, is a single ( B2C ) transaction. B2B2C means "business-to-business-to-consumer". According to the TechTarget website, the purpose of the terminology is to "extend the business-to-business model to include e-commerce for consumers". B2B2C aims to "create a mutually beneficial relationship between suppliers of goods and services and online retailers". According to Lomate and Ramachandran, it enables manufacturers (the first "B" in B2B2C) to connect with, understand and serve their end customers ("C") without undermining their sales and distribution networks, including online sellers (the second "B") or excluding them from continuing customer engagement . Economy of
8165-457: The coronavirus pandemic had resulted in the US government temporarily halting service of fifteen US airlines to 75 domestic airports. The New York Times reported on June 10, 2020, that "the United States budget deficit grew to a record $ 1.88 trillion for the first eight months of this fiscal year ." The US economy recovered from the COVID-19 pandemic in 2021, growing by 5.7%, which
8280-434: The cost of shipping plus a higher profit. In other cases, some countries have gradually learned to produce the same products and services that previously only the U.S. and a few other countries could produce. Real income growth in the U.S. has slowed. In the 1970s and 1980s, it was popular in the U.S. to believe that Japan's economy would surpass that of the U.S., but this did not occur. The United States economy experienced
8395-598: The developing country public health setting, John Snow, Inc. has developed the JSI Framework for Integrated Supply Chain Management in Public Health, which draws from commercial sector best practices to solve problems in public health supply chains. Similarly, supply chain mapping involves documenting information regarding all participants in an organization's supply chain and assembling the information as
8510-538: The efficiency of distribution. The term "logistics" applies to activities within one company or organization involving product distribution, whereas "supply chain" additionally encompasses manufacturing and procurement, and therefore has a much broader focus as it involves multiple enterprises (including suppliers, manufacturers, and retailers) working together to meet a customer need for a product or service. However, John Mills et al . note that "early research" on supply chains focused on internal supply relationships within
8625-483: The enacting of policies that can improve occupational safety and health management in organizations. In fact, international organizations with presence in other nations have a responsibility to ensure that workers are well protected by policies in an organization to avoid safety related incidents. Many agribusinesses and food processors source raw materials from smallholder farmers. This is particularly true in certain sectors, such as coffee , cocoa and sugar . Over
8740-407: The face of change". For a long time, the interpretation of resilience in the sense of engineering resilience (or robustness) prevailed in supply chain management, leading to the notion of persistence . A popular implementation of this idea is given by measuring the time-to-survive and the time-to-recover of the supply chain, allowing identification of weak points in the system. More recently,
8855-833: The first tier, and so on. The phrase "supply chain" may have been first published in a 1905 article in The Independent which briefly mentions the difficulty of "keeping a supply chain with India unbroken" during the British expedition to Tibet . A typical supply chain can be divided into two stages namely, production and distribution stages. In the production stage, components and semi-finished parts are produced in manufacturing centres. The components are then put together in an assembly plant. The distribution stage consists of central and regional distribution centres that transport products to end-consumers. Mentzer et al. suggest that at least three entities are required for there to be
8970-423: The flow of goods in distribution channels within the supply chain in the most efficient manner. In sophisticated supply chain systems , used products may re-enter the supply chain at any point where residual value is recyclable. Supply chains link value chains . Suppliers in a supply chain are often ranked by "tier", with first-tier suppliers supplying directly to the client, second-tier suppliers supplying to
9085-547: The flow of information and finances is part of the chain as well as the product or service. Fazel Zarandi et al. add "buyer-seller relations" (at each stage), in addition to the flow of information, as the third main component of a supply chain. Mentzer et al. remind readers also that the focus of a supply chain is on the product or service in its end state: they refer to "the supply chain for candy " and "the supply chain for clothing". Individual supply chain actors may be positioned at different points in different supply chains:
9200-438: The government. The decline of union membership in the U.S. over the last several decades parallels that of labor's share of the economy. The World Bank ranks the United States first in the ease of hiring and firing workers. The United States is the only advanced economy that does not legally guarantee its workers paid vacation or paid sick days , and is one of just a few countries in the world without paid family leave as
9315-470: The interpretations of resilience in the sense of ecological resilience and social–ecological resilience have led to the notions of adaptation and transformation , respectively. A supply chain is thus interpreted as a social-ecological system which – similar to an ecosystem (e.g. forest) – is able to constantly adapt to external environmental conditions and – through the presence of social actors and their ability to foresight – also to transform itself into
9430-432: The largest in the world. Annualized, nominal GDP reached $ 20.1 trillion in Q1 2018, the first time it exceeded $ 20 trillion. About 70% of U.S. GDP is personal consumption, with business investment 18%, government 17% (federal, state and local but excluding transfer payments such as Social Security, which is in consumption) and net exports a negative 3% due to the U.S. trade deficit. Real gross domestic product ,
9545-409: The last decade. The proportion of Americans employed by small business versus large business has remained relatively the same year by year as some small businesses become large businesses and just over half of small businesses survive for more than five years. Amongst large businesses, several of the largest companies and employers in the world are American companies. Amongst them are Walmart , which
9660-572: The modern U.S. Presidents, Bill Clinton had the highest cumulative percent real GDP increase during his two terms, Reagan second and Obama third. The development of the nation's GDP according to World Bank : U.S. real GDP grew by an average of 1.7% from 2000 to the first half of 2014, a rate around half the historical average up to 2000. Nominal GDP sector composition, 2015 (in millions of dollars) at 2005 constant prices Nominal GDP Sector Composition, 2016 (in millions of dollars) at current prices. There were approximately 160.4 million people in
9775-546: The money supply, which also encouraged more spending. Ideas about the best tools for stabilizing the economy changed substantially between the 1930s and the 1980s. From the New Deal era that began in 1933 to the Great Society initiatives of the 1960s, national policymakers relied principally on fiscal policy to influence the economy. During the world wars of the twentieth century, the United States fared better than
9890-483: The motives for and performance efficacy of vertical integration differ by global region. Incorporating SCM successfully leads to a new kind of competition on the global market, where competition is no longer of the company-versus-company form but rather takes on a supply-chain-versus-supply-chain form. The primary objective of SCM is to fulfill customer demands through the most efficient use of resources, including distribution capacity, inventory , and labor. In theory,
10005-409: The need for a more comprehensive measurement program." However, the abundance of options for potential performance metrics to use is seen as a challenge for supply chain managers. One approach is to relate multiple measures in a hierarchical structure so that interdependencies and the contribution of multiple indicators to the "key" or most significant metrics can be more easily seen. Hofman suggests that
10120-516: The only years since 1947 where this occurred, presenting a significant barrier to recovery. Real GDP regained its pre-crisis (late 2007) peak by 2011, household net worth by Q2 2012, non-farm payroll jobs by May 2014, and the unemployment rate by September 2015. Each of these variables continued into post-recession record territory following those dates, with the U.S. recovery becoming the second longest on record in April 2018. A significant recession, as defined lost economic output, occurred during
10235-602: The part-time underemployed , was 8.1% or 8.2 million people. These figures were calculated with a civilian labor force of approximately 160.6 million people, relative to a U.S. population of approximately 327 million people. Between 2009 and 2010, following the Great Recession, the emerging problem of jobless recoveries resulted in record levels of long-term unemployment with more than six million workers looking for work for more than six months as of January 2010. This particularly affected older workers. A year after
10350-443: The past 20 years, there has been a shift towards more traceable supply chains. Rather than purchasing crops that have passed through several layers of collectors, firms are now sourcing directly from farmers or trusted aggregators. The drivers for this change include concerns about food safety , child labor and environmental sustainability as well as a desire to increase productivity and improve crop quality. In October 2009,
10465-443: The products and do not sell the products. It is merely a platform to bring sellers and purchasers together online. The better platforms help buyers easily find information about the sellers and the relevant information about the products via the website. A good example of a horizontal B2B model is bankers vs corporate lawyers. A 2022 Amazon report highlighted a "rapid transformation of B2B e-procurement in recent years", with 91% of
10580-469: The question in a key article, "Which is the right supply chain for your product?" Fisher, and also Naylor, Naim and Berry (1999), identify two matching characteristics of supply chain strategy: a combination of "functional" and "efficient", or a combination of "responsive" and "innovative" (Harrison and Godsell). Mentzer et al. distinguish between "direct supply chains", "extended supply chains", and "ultimate supply chains"; in their usage: In each case,
10695-588: The reasons for this are unclear. At the beginning of the century, new innovations and improvements in existing innovations opened the door for improvements in the standard of living among American consumers. Many firms grew large by taking advantage of economies of scale and better communication to run nationwide operations. Concentration in these industries raised fears of monopolies that would drive prices higher and output lower, but many of these firms were cutting costs so fast that trends were towards lower prices and more output in these industries. Many workers shared
10810-619: The recession ended in June 2009, immigrants gained 656,000 jobs in the U.S., while U.S.-born workers lost more than a million jobs, due in part to an aging country (relatively more white retirees) and demographic shifts. In April 2010, the official unemployment rate was 9.9%, but the government's broader U-6 unemployment rate was 17.1%. Between February 2008 and February 2010, the number of people working part-time for economic reasons (i.e., would prefer to work full-time) increased by 4.0 million to 8.8 million, an 83% increase in part-time workers during
10925-607: The rest of the combatants because none of the First World War and relatively little of the Second World War were fought on American territory (and none on the then-48 states). Yet, even in the United States, the wars meant sacrifice. During the peak of Second World War activity, nearly 40 percent of U.S. GDP was devoted to war production. Decisions about large swaths of the economy were largely made for military purposes, and nearly all relevant inputs were allocated to
11040-624: The rising eurozone unemployment rate in the mid-1980s and has remained significantly lower almost continuously since. In 1955, 55% of Americans worked in services, between 30% and 35% in industry, and between 10% and 15% in agriculture . By 1980, over 65% were employed in services, between 25% and 30% in industry, and less than 5% in agriculture. Male unemployment continued to be significantly higher than those of females (at 9.8% vs. 7.5% in 2009). The unemployment among Caucasians continues being much lower than those for African-Americans (at 8.5% vs. 15.8% also in 2009). The youth unemployment rate
11155-406: The success of the supply chain depends on the product design and the capabilities of the supply chain, but the reverse is also true: the success of the product depends on the supply chain that produces it. According to an industrial engineering study which looked at a process for Design for Supply Chain (DFSC), since the product design imposes multiple requirements on the supply chain, then once
11270-460: The success of these large firms, which typically offered the highest wages in the world. The United States has been the world's largest national economy in terms of GDP since around 1890. For many years following the Great Depression of the 1930s, when the danger of recession appeared most serious, the government strengthened the economy by spending heavily itself or cutting taxes so that consumers would spend more and by fostering rapid growth in
11385-554: The supplier's supplier to the customer's customer". It includes delivery and order fulfillment performance, production flexibility, warranty and returns processing costs, inventory and asset turns, and other factors in evaluating the overall effective performance of a supply chain. A supply chain can often be split into different segments: the earlier stages of a supply chain, such as raw material processing and manufacturing , determine their break-even point by considering production costs relative to market price. The later stages of
11500-471: The supply cannot be directly controlled and that smart and electronic technologies play a key role to improve visibility. Finally, they highlight that collaboration with local partners, across the industry and with universities is crucial to successfully manage social responsibility in supply chains. This incident also highlights the need to improve workers safety standards in organizations. Hoi and Lin (2012) note that corporate social responsibility can influence
11615-414: The supply chain has the ability to help optimize the entire supply chain rather than to sub-optimize based on local optimization. This will lead to better-planned overall production and distribution, which can cut costs and give a more attractive final product, leading to better sales and better overall results for the companies involved. This is one form of vertical integration . Yet, it has been shown that
11730-418: The supply chain. Supply chain consultant Anthony Tarantino has identified a number of best practices affecting the resilience and operation of supply chains, including the formation of multi-disciplinary centres of excellence, hybrid supply chain organizations which optimize the balance between centralization and de-centralization, and more extensive use of both structured and unstructured data . Big data
11845-446: The three key indicators of a well-functioning supply chain are: A Cranfield University boardroom survey in 2010 found evidence that many organizations recognized the importance of the supply chain contribution to their business success, with a focus on cost, customer lead-time and customer quality being the primary performance indicators. Supply chain resilience is "the capacity of a supply chain to persist, adapt, or transform in
11960-448: The trade of the colonies. These 13 colonies gained independence from the British Empire in the late 18th century and quickly grew from colonial economies towards an economy focused on agriculture . In 180 years, the United States grew to become a huge, integrated, and industrialized economy, which made up about a fifth of the world economy . In that process, the U.S. GDP per capita rose past that of many other countries, supplanting
12075-455: The transformation of raw materials, with lumber and sawmills, textiles, and boots and shoes leading the way. The rich natural resources contributed to the rapid economic expansion of the nineteenth century. Ample land allowed the number of farmers to keep growing; but activity in manufacturing, services, transportation, and other sectors grew much faster, so that by 1860 the population was only about 50 percent rural, down from over 80 percent. In
12190-497: The two reports, the Commission established a "European Food Prices Monitoring Tool", an initiative developed by Eurostat and intended to "increase transparency in the food supply chain". In March 2022 the Commission noted "the need for EU agriculture and food supply chains to become more resilient and sustainable". The supply chain in the fashion industries has some unique properties, as clothing fashion changes several times
12305-426: The two-year period. By 2013, although the unemployment rate had fallen below 8%, the record proportion of long term unemployed and continued decreasing household income remained indicative of a jobless recovery. However, the number of payroll jobs returned to its pre-recession (November 2007) level by May 2014 as the economy recovered. After being higher in the post-war period, the U.S. unemployment rate fell below
12420-569: The upstream and downstream elements of supply-chain management (SCM). The SCOR ( Supply-Chain Operations Reference ) model, developed by a consortium of industry and the non-profit Supply Chain Council (now part of APICS ) became the cross-industry de facto standard defining the scope of supply-chain management. SCOR measures total supply-chain performance. It is a process reference model for supply-chain management, extending "from
12535-472: The value of securities backed by mortgages fell dramatically, causing the equivalent of a bank run in the essentially unregulated non-depository banking system, which had outgrown the traditional, regulated depository banking system. Many mortgage companies and other non-depository banks (e.g., investment banks) faced a worsening crisis in 2007–2008, with the banking crisis peaking in September 2008, with
12650-443: The war effort. Many goods were rationed, prices and wages controlled, and many durable consumer goods were no longer produced. Large segments of the workforce were inducted into the military and paid half their wages; roughly half of those were sent into harm's way. The approach, advanced by British economist John Maynard Keynes , gave elected officials a leading role in directing the economy since spending and taxes are controlled by
12765-465: The website can be created for business, where the seller advertises their products to promote and expand transactions. A good example of a vertical B2B model is manufacturers vs wholesalers. Horizontal B2B is the transaction pattern for the intermediate trading market. It concentrates similar transactions of various industries into one place, as it provides a trading opportunity for the purchaser and supplier, typically involving companies that do not own
12880-427: The workforce as of 2022, up from 34% in 2000. The nation's private sector employs 85% of working Americans. Government accounts for 14% of all U.S. workers. Over 99% of all private employing organizations in the U.S. are small businesses. The 30 million small businesses in the U.S. account for 64% of newly created jobs (those created minus those lost). Jobs in small businesses accounted for 70% of those created in
12995-423: The world's largest gold reserve , with over 8,000 tonnes of gold. In 2014, the U.S. economy was ranked first in international ranking on venture capital and global research and development funding. The U.S. spends around 3.46% of GDP on cutting-edge research and development across various sectors of the economy. The U.S. has produced the world's highest number of Nobel laureates in the economics field. It
13110-501: Was 18.5% in July 2009, the highest rate in that month since 1948. The unemployment rate of young African Americans was 28.2% in May 2013. Supply chain A supply chain is a complex logistics system that consists of facilities that convert raw materials into finished products and distribute them to end consumers or end customers . Meanwhile, supply chain management deals with
13225-554: Was its best performance since Ronald Reagan 's presidency (1981–1989). 2021–2022 marked a historical inflation surge in the United States, with the Consumer Price Index inflation rate hitting 9.1% higher in June 2022 than June 2021, constituting a 41-year high inflation rate with critics blaming the Federal Reserve among other factors. Inflation rate reached 4.9% in April 2023, which was roughly 3% above
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