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Tuesday, November 27, 2007

Why big corporate using B2B service instead of doing themselves?

It is crucial for a company that able to trade with all its trading partners electronically.

Despites this, many businesses still receive business-critical information from their SME trading partners through fax, email or phone even though all these manual processes are slow, inefficient and error-prone.

I think these maybe some of the reasons why they not going to connect all their trading partner themselves.

  • Cost – software ownership cost, cost for software customization, software support/maintenance cost, infrastructure setup cost, technical staffing cost.
  • Speed – total time and effort spent to connect to all trading partners is slow.
  • Skillset and resource – require extra resource to track different project for various trading partner and also to support the trading partner.
  • Different protocol and data format – different data format and protocol used when connecting to various trading partners, eg: EDI, XML, RNIF AS2, HL7

Benefits of using B2B service:

  • Speed – speed up the implementation of a new trading relationship, as B2B service provider will help to build the electronic trading communities.
  • Cost savings – avoid costly software and customization, infrastructure and technical staff.
  • Control over a single source – document can be track and monitor over a single source and single data format and also single protocol.
  • Efficiency – free up the in-house resources to devote more time and effort to core business activities.

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