Business-To-Business (B2B) eCommerce and Electronic Data Interchange (EDI) technologies “creates an environment for an effective and efficient global economy” (Ray Walker). B2B technologies allow for the rapid and economic transmission of business documents. Any business that does not effectively leverage B2B technologies will likely perish in the long run in a global economy. The exchange of paper documents such as purchase orders and invoices are increasingly becoming a non-economical practice.
The Basics of B2B and EDI Technologies. B2B eCommerce is conducted globally usually over the internet, using telecommunications carriers, or dedicated communications lines. B2B eCommerce at its essence is data transfer of business documents that occurs between two computer systems. Each system belongs to each of the businesses in the B2B relationship. See What is B2B eCommerce? for more information of B2B and EDI technologies.
Examples of Where Businesses Can Leverage B2B and EDI technologies.
Below are some examples and ideas where businesses can leverage B2B and EDI technologies.
- Supplier eInvoicing. eInvoicing is fairly common between large businesses. The initial EDI enablement costs are low compared to the high transaction volumes. The challenge of eInvoicing comes with exchanging electronic invoices with small suppliers and businesses. See posting, Free B2B Electronic Invoicing For Small Suppliers, as an eInvoicing solution for small suppliers. Also, EDI – a Burden or Strategic Necessity for Suppliers?
- Value Added Networks (VAN) Versus Direct Connection. There are advantages and disadvantages to conducting B2B eCommerce through either VANs or directly connecting to trading partners. See posting, EDI Over Internet or Through VANs: Where Best to Do B2B eCommerce?
- Supply Chain Transparency. To have supply chain visibility between your customers and suppliers, B2B eCommerce is key. See posting, Try Offering Supply Chain Transparency To Your Trading Partners.
- Synchronizing B2B Data Streams. With the near-real-time flow of electronic documents such as purchase orders and invoices, there are now more opportunities to synchronize these B2B data streams such as the real-time matching of documents. See posting, Synchronize Data To Leverage New Supply Chain Technology.
- Degrees of B2B Collaboration and Integration. There are four types of business collaboration that are defined by the level of B2B data integration between two businesses. See posting, The Relationship Between Business Collaboration and B2B Integration.
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Tags: B2B, EDI, Integration