B2B

B2B, or business-to-business, describes transactions, services, or partnerships between two companies rather than between a company and an individual consumer. In logistics, B2B fulfillment typically involves manufacturers, wholesalers, and distributors shipping bulk goods to other businesses — such as retailers or commercial buyers — instead of to end consumers.

How B2B Works in Logistics

In a B2B model, one business supplies goods or services that help another business operate or resell products. For example, a manufacturer may send pallets of inventory to a retailer’s distribution center. These transactions often require larger order volumes, customized delivery schedules, and complex warehouse management systems (WMS) to handle inventory efficiently.

Key B2B Characteristics

• Bulk Orders: Shipments are typically large and palletized, with a focus on wholesale or replenishment orders.
• Supply Chain Integration: Businesses rely on real-time data sharing between suppliers, warehouses, and retailers.
• Delivery Requirements: B2B logistics may involve scheduled dock appointments, labeling compliance, and electronic data interchange (EDI).
• Relationship-Driven: Contracts and partnerships are long-term, emphasizing reliability and service-level agreements (SLAs).

Examples of B2B Transactions

• A manufacturer shipping goods to a national retailer.
• A company providing raw materials to a production facility.
• A software firm selling logistics management tools to a 3PL provider.

Related Blogs

• Guide to B2B Fulfillment Services: Streamlining Your Operations

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