What Is Collaborative Commerce (C-commerce)?

Collaborative commerce (C-commerce) involves the optimization of supply and distribution channels in order to capitalize on the global economy and use new technology efficiently. In collaborative commerce, organizations coordinate with each other to maximize their efficiency and profitability.

Companies may use or share the same technological platforms or transact business with each other and at times may integrate vertically to some degree. Collaborative commerce involves companies transacting business with other companies through electronic channels.

C-commerce happens when companies work together using technology and electronic platforms to maximize their efforts by optimizing their supply and distribution channels.

Understanding Collaborative Commerce (C-commerce)

Collaborative commerce (C-commerce) is a new focus for organizations attempting to become more profitable and competitive. Collaboration promotes fresh views of suppliers, competitors, and customers. A goal of collaborative commerce is for a business to move away from production and sales, shifting towards the integration of various businesses.

Example of Collaborative Commerce

For example, XYZ Company has been producing and marketing widgets for decades. Recently, ABC Company revolutionized the widget industry and can now make them cheaply and more efficiently. XYZ Company decides to collaborate with ABC Company and starts marketing, selling, and servicing ABC Company's widgets.

XYZ Company is able to increase its profitability because it no longer has to pay for all of the expenses to manufacture its own widgets. Instead, it focuses on the higher margin business of marketing, selling, and servicing another company's product. ABC Company's revenue benefits also because of the massive number of widgets XYZ Company sells on their behalf.