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Showing posts with label B2BSP. Show all posts
Showing posts with label B2BSP. Show all posts

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.