- Did you know there are 25 steps in every B2B transaction?
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- B2B Oustourcing Glossary of Terms
- Click here to access a glossary of common technical terms and acronyms used when discussing B2B Outsourcing
What are B2B Managed Services?
A practical definition
B2B Managed Services can be defined as an outsourced solution that provides the technical infrastructure, process support and skills to deliver effective B2B transactions and supply chain management.
What does this actually mean?
Early B2B solutions focused on replacing manual business documents and processes with automated alternatives that could be shared electronically between trading partners. The benefits achieved revolved around improving response times and reducing data errors. Increases in business efficiency were significant – reducing costs while increasing profitability.
As all major marketplaces have become more global, the exchange of information with growing trading communities in different regions has become exponentially more expensive and complex.
At the same time, early successes in automating simple documents such as invoices and purchase orders demonstrated how business processes could be successfully re-engineered. This has led to the extension of B2B solutions deeper into the business functions of organisations, such providing visibility from order to fulfilment.
While early B2B solutions were implemented and maintained internally, the increase in cost and complexity is making the support of a global B2B infrastructure in-house increasingly challenging. Even though B2B services touch many business divisions, few organisations see them as core to the business.
Instead the ability to engage a third party B2B supplier with a global footprint and local support offers a means to ensure the organisation always has access to the latest technology. In addition, it is protected from the myriad of technical standards and trading regulations that represent huge impediments to organisations trading effectively with partner communities worldwide.
Little surprise that the Yankee Group reports 60% of companies have already outsourced some part of their supply chain operations, either globally or domestically. The question appears to be not whether to use B2B Managed Services but where it is best for your organisation.