Business-to-Business Electronic Commerce

Internet is used to transmit EDI documents in three basic ways : - Company-to-Company - Hub and Spokes - EDI Service Bureau Business-to-business electronic commerce emphasis on: - Security - Payment

The Internet is being used to transmit EDI documents in three basic ways :-

• Company-to-Company
  This is where large EDI-enabled trading partners transmit EDI documents prepared using traditional EDI translation software over the Internet. Software such as Premenos Templar are used to achieve this.

• Hubs and Spokes
  A large company will set-up an EDI server at its location, which trading partners can access over the Web with proprietary software which allows both EDI via e-mail as well as using Web-based forms.

  An example of this would be Boeing (www.boeing.com) where its customers can order any of 410,000 different Boeing parts over the Web.

• EDI Service Bureau
  Client-members use a Web browser to transmit EDI documents to other client-members. Bigger service bureaus may integrate their existing VANS (used by larger companies) with their Web-only system (used by smaller companies. An example of this is GE TradeWeb (www.getradeweb.com)

In a typical business-to-business electronic commerce environment, security is important to ensure authentication of the buyer or seller, non-repudiation of the transaction and encryption.

In the areas of payment, businesses don't use credit cards for payment unless it is for small business-to-business electronic commerce e.g. Grainger Inc (www.grainger.com). Traditional business-to-business infrastructure will still be in effect. However, pilot systems are being conducted in areas like electronic cheques to cater for payment for business-to-business.