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From EDI B2G to B2B, the Leap Towards Efficiency

04/12/2017

EDI B2G to B2B

Relations between companies and the public sector are getting increasingly closer. Efficiency and tax control are the main trigger driving governments to promote e-management systems for services procurement, payments to suppliers, submitting VAT information, etc. This growing trend worldwide is pushing companies to adapt their internal information management processes to a new digitized environment, based on EDI (Electronic Data Interchange) systems.

The obligation imposed by governments has prompted many businesses to take the technological leap to comply with legislation in their relations with Public Administration, for example by rolling out an e-invoicing solution. For many companies, this switch is the first step towards the digital transformation, not only in the B2G scope but also in all their business relations.

The aim is to leverage the investment and technology, applying it to the rest of the company’s in-house processes and commercial transactions in the B2B area. The higher the number of trading partners (customers, suppliers, logistic operators, etc.) and EDI messages exchanged, the more profit there is to be made.

The advantages for a company of addressing digital transformation are summarized in one: cost savings. But there are other benefits derived from the competitive edge honed by working with EDI solutions:

  • Automation of transactions
  • Quicker response times
  • Minimizing errors
  • Increasing productivity
  • Integrating all business and trading partners
  • Providing information on process status
  • Improving service to end users
  • Optimizing financial ratios
  • Enhanced security and confidentiality in communications.

According to the latest “Billentis” report, by 2020, 60% of companies will be forced, either by legislation or by important trading partners, to exchange their invoicing in electronic format only. This scenario poses challenges in the mid- to long-term for businesses of all sizes and sectors. Larger companies already using EDI systems play a crucial role in extending the use of B2G to B2B, encouraging the global dematerialization of business communications.

EDICOM, customized solutions

Although the biggest obstacle that companies see in approaching digital transformation of their internal processes is the economic cost involved, in many cases it is actually more to do with overcoming a cultural barrier and fostering a change in business mentality.

EDI system providers currently offer different rollout models, adapted to the reality of each type of company (size, sector, turnover, etc.). The great initial advantage of working with a partner like EDICOM is, firstly, that it provides an outsourcing service that lets you delegate all the resources required to implement your EDI communications project. Secondly, that all the solutions required by the client take place in the cloud through the EDICOM B2B Cloud Platform. This means saving on infrastructures.

The integrated EDI solution lets you easily manage all your e-transactions and documents from your company’s own ERP (internal management system). This is a multi-sector, multi-standard and multi-protocol solution, which integrates with any ERP on the market (SAP, Oracle, Baan, Navision, etc.). Likewise, it is ready to issue e-invoicing in compliance with the requirements of more than 60 countries around the world, allowing multinationals to centralize their transactions in a single platform.

The EDICOM Web EDI manual solution is a low cost and highly reliable option for B2B Cloud-based electronic interchange. When message volumes are low, EDICOM deploys low-cost models that can be quickly rolled out for sending and reception of messages through web interfaces. This model is suitable for small and medium-sized companies that need to do EDI but lack the necessary resources to implement an integrated solution.

As occurs with any EDI solution, the main benefit of this technology is that it allows a smooth and secure exchange of messages between companies. This boost efficiency, simplifies transactions and increases the economic saving.

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