The Business Case
Part 2: The Solution
In several ways, B2B managed services helps companies resolve the issues that may have prevented them from benefiting from B2B e-commerce. B2B managed services, or outsourcing, provides:
Enhanced Agility by...
- Shielding a business from complexity. With existing standards constantly evolving—trading partners undertaking their own technology refreshes at a pace to suit their business needs, new customer wins, or new suppliers providing better deals—the technical infrastructure of a supply chain changes on a regular basis. B2B outsourcing insulates companies from ongoing technical complexity by placing the responsibility for supporting multiple standards and translation between them in the hands of the outsourcing service provider.
- Extending IT departments. B2B outsourcing immediately extends the capabilities of the IT department, especially in small and mid-sized enterprises that simply cannot afford the overhead of a dedicated B2B support team. In-house staff are free to focus on activities that deliver unique value and competitive advantage to the company.
Increased Speed through...
- Delivering rapid implementation. B2B outsourcing enables rapid rollout of a B2B solution, whether it is extended to more existing trading partners, to new customers or suppliers or expanded into new geographies. The managed services supplier should offer support for whatever B2B and transport protocols a partner wants to use, as well as local language skills, and support for country or industry-specific documents such as customs or hazardous materials declarations.
- Supporting accelerated growth. Companies that are able to meet new market opportunities or quickly respond to supply chain disruptions are likely to outperform their competition. To do this requires a flexible B2B platform, robust processes that have been proven over the long term, and a global support organization to provide B2B technical and business expertise. Research repeatedly shows1 that the lack of such expertise—in sufficient quantities and on a global basis—is a major barrier to deploying B2B solutions rapidly or making the most of them once they are in place. A B2B outsourcer can offer dedicated community management services to help bring on board and manage trading partners quickly and smoothly.
Reduced Risk in the form of...
- Lowering the investment risk. B2B Outsourcing ensures that the cost of a B2B e-commerce solution becomes a predictable expense, through monthly subscription fees which usually are clearly linked to the volume of transactions being processed or network capacity used.
- Better future-proofing of your B2B solution. B2B outsourcing providers are committed to continually improving the B2B capabilities and service levels they offer. This usually far exceeds any commitment achieved and maintained internally.
Enhanced ROI through...
- Minimizing upfront investment. B2B outsourcing allows businesses to leverage the existing infrastructure of the B2B outsourcer with minimal capital investment in technology or new staff and skills when developing or expanding B2B capabilities. Leveraging that existing infrastructure also delivers the bottom-line benefits of your B2B program—such as savings on transaction handling costs and fewer errors in transactions—within months rather than years.
- Lowering the Total Cost of Ownership (TCO). B2B outsourcing reduces the TCO of a B2B solution. Because technical infrastructure and scarce and expensive skills are leveraged across many customers, an outsourcer can deliver a B2B solution at lower cost than is possible in-house. Generally, customers report TCO savings averaging between 20% and 40% each year to achieve the same B2B objectives, compared to running a solution in-house.
The benefits of B2B outsourcing can make a powerful difference to a company's bottom line and competitive positioning.
