78 percent of Companies Say Digital B2B Integration Improved Supply Chain Performance

Try to imagine enterprise management without using multiple systems. It seems impossible, doesn't it? Nowadays, various software is used to manage customer and supplier relationships, documents, sales, etc. It is typical for business partners to build their business processes based on software from different suppliers, developed with the help of various technologies.

However, it can have negative ramifications that might include the following: 

● Blocked access to valuable and relevant data

● Lost orders

● Unfulfilled agreements

● Lost revenue opportunities, etc. 

Initially, digital Business-to-Business (B2B) integration helped companies exchange business documents with suppliers and customers, saving time and money and improving service quality.  

Nowadays, this is the business model for partner collabora 78tion that involves integrating disparate systems, such as data formats, to create a unified platform for exchanging data, automating business processes, and streamlining operations.

For example, you are a retailer who wants to buy products from your supplier. You prepare an order in your ERP or purchasing system. This order is securely transmitted to your supplier via the internet and processed by the supplier. Then, your supplier sends back an order confirmation.  

After processing the order, the supplier sends an advance shipping notification that you integrate into your ERP system. Your supplier ships the order and sends an invoice to you. You send a payment order to the supplier to confirm payment details.

B2B integration can encompass the following:

● Electronic data interchange (EDI)

● Application programming interfaces (APIs)

● Web services and other forms of data exchange

How Can B2B Integration Benefit Businesses?

According to the IDC report, “Next-Generation B2B Integration Enables a Digital-First, Resilient Supply Chain”, US-based organizations mark a wide range of its benefits, including reduced operational (40%) and logistics (30%) costs, faster time to market (35%), and better inventory turnover (30%).

 B2B integration can improve collaboration with suppliers, customers, and other partners, enabling more effective communication and faster response times. 

B2B integration can help companies increase efficiency by streamlining business processes, reducing manual data entry, and automating tasks, leading to increased efficiency and reduced costs. Reducing manual data entry can help minimize errors and improve data transfer accuracy (29%).

Building B2B integration, you can gain real-time visibility into inventory levels, production schedules, and shipping status, allowing your business to make more informed decisions and respond quickly to changing market conditions.

B2B integration can also improve collaboration with suppliers, customers, and other partners, enabling more effective communication and faster response times. This can help businesses deliver better customer service and improve customer satisfaction.

How to Build a Resilient Supply Chain Based on B2B Integration?

Besides a thorough understanding of the company’s business processes, building a resilient supply chain requires a reliable and scalable integration solution that ensures regulatory compliance and provides monitoring and control mechanisms.

SAP provides various B2B integration solutions, including SAP Business Technology Platform, SAP Business Network, and SAP Analytics and Insights solutions. For example, system integration is one of the SAP BTP pillars. This solution helps companies integrate their IT environment with their partners’ and customers’ systems to improve collaboration efficiency. 

The LeverX Group experts have an extensive understanding of supply chain processes. They are ready to help you complete the  B2B integration steps. 

1. We identify your supply chain areas and business processes that must be integrated with your partners' systems.

2. SAP offers B2B integration solutions. We help you choose the right one that will fit your business needs and support the integration of multiple data formats and protocols, including EDI, APIs, and web services.

3. Our experts help you determine the most effective communication methods, data formats, and data exchange protocols. After that, we will help you build the integration between your system and your partners' systems to ensure the integration is scalable, reliable, and secure. 

4. Supply chains are subject to extensive regulatory requirements. The LeverX Group experts will ensure that your B2B integration complies with industry standards and regulations. 

5. To enable continuous and efficient collaboration with your partners, we help you establish monitoring and control mechanisms that provide real-time visibility into your B2B integration processes and analytics. We will also help you secure reporting tools that enable you to identify areas for improvement.

What to Consider When Developing B2B Integration?

While there are many points to consider when developing B2B integration, the following three , are key to establishing the most effective integration for your enterprise:

● Business needs: Identify the specific business needs the B2B integration should meet. This includes transaction types, frequency, volume, and the specific business processes to integrate.

● Technical capabilities: Assess the technical capabilities of both the sending and receiving systems to ensure they can support the required integration. This includes evaluating the system's compatibility and identifying necessary modifications or upgrades.

● Scalability and flexibility: B2B integration should be designed to accommodate future growth and changes in business needs. This requires a scalable, flexible architecture that can handle increased transaction volumes and support new business processes.

If you are ready to launch your B2B integration project, the LeverX Group experts will be happy to help you assess the integration readiness of your supply chains and implement the project.  

Dmitry Antanovich:

Solutions Director, Digital Supply Chain at LeverX Group North America

I am passionate about finding the right solution for a customer's requirements using the portfolio of SAP solutions. I have over 17 years of SAP experience and an extensive technical understanding of SAP solutions, architecture, and overall software architecture.