Most online B2B services appearing recently aim to leverage the Internet to reduce the costs of doing business. But can they really reduce costs? B2B typically takes the form of automated processes between business/trading partners and is performed in much higher volumes than B2C applications. In order to understand the opportunities for B2B e-commerce we need to look at how a business operates in a market and identify the opportunities that exist for introducing internet solutions in streamlining the business processes.
You, or your accountant, should already be tracking your operating costs. Tracking your key expenses is vital to finding the minimum cost required to do each task successfully. Once you've quantified each expense separately, it will be easier to identify where you can save money. Sometimes finding one key expense that can be reduced can make the difference between success and failure.
Operating costs generally include personnel, facilities, loan payments, taxes, depreciation, licenses, Internet services, legal and professional services, office supplies, subscriptions, travel and entertainment, and advertising or marketing. When you examine each item carefully, you will see that with some licenses, for example, there is little option for reducing cost because they include fixed rates. Other costs, such as personnel, are almost completely in your power to change. Lowering expenditures in these fields can be as simple as conserving resources.
Many B2B enterprises and ASPs offer services. They have saved many companies from ruin and brought others unnecessary expense. You will have to decide for yourself if they can help and how. These companies serve their customers by providing functions more cheaply than their customers could do the functions themselves. The newly emerging ASPs help small businesses by renting or leasing them Internet access to software only when they need it.


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