All business companies are looking to speed up order processing, minimise mistakes and save time from doing repetitive work. However, a lot of B2B deals are still dependent on humans having to enter the same data into multiple systems.
A quotation is prepared by a supplier, sent to the buyer and the information entered into the buyer's software. The buyer then generates a PO and returns it. Those details are re-entered by the supplier prior to preparing the order. Invoices, deliveries and payments notifications are similar.
This 'repetitive task' is more than just paperwork. This is because businesses employ their own systems which do not talk to each other.
While document automation can be a part of the solution, connecting businesses goes the extra mile. A social B2B network enables buyers and suppliers to integrate their processes, enabling the passing of business data as structured data between the two.
Document automation in B2B business is used to automate and streamline the generation of business documents.
Document automation is a technology that cuts down on manual efforts in the creation, processing and sharing of business documents.
These documents for B2B transactions contain:
- Quotes and quote requests
- Purchase orders
- Sales invoices
- Delivery receipts
- Payment confirmations
If two trading partners are connected to the same network then a document issued by one business can be received as structured information by the other business. The recipient team doesn't have to re-enter all of the items in the PDF.
Document automation is a larger process linking the businesses that interact with documents daily.
It's no longer adequate to use traditional ERP systems.
Enterprise resource planning systems (ERP systems) are used to support the management of a company's own operations. They can be responsible for buying, selling, stocks, accounts, etc., in the company.
But two companies can utilize different ERP systems completely different. However, even if both are operating well on the inside, they don't have to have direct access to the transactions data.
This creates a connection point of employees. They download files, read emails, copy information and enter the same information into another system.
A B2B network that's connected fills this void. It offers an environment in which trading partners can share transaction data, rather than having to leave each partner in isolation.
It's not just the aim of managing documents for one company. This is to eliminate data duplication in each business transaction.
The Three Layers of Business Automation
There are three layers of automation at which we can help with a connected B2B network.
1. Document Automation
Documents can flow from a buyer system to a supplier's system and vice versa when a buyer and a supplier are linked, as structured data. A supplier's quotation may be added to the Buyer's system and a purchase order may be sent to the supplier without the need to re-key it.
This process can be used for invoices, delivery receipts and payment confirmations.
2. Internal Workflow Automation
Documents can also be used to initiate the next step in a business.
A quotation, which has been accepted, can be used for preparing a purchase order, for example. An order can be confirmed and this can be used to create an invoice. The delivery data may be used to update the stock-keeping level, and the invoice data may be used to help draw up the payment records.
Staff still have the responsibility for making decisions which are important. The system is used to transfer repetitive information.
3. Cross Company Automation
This is where it is most beneficial to have the business-to-business connection.
The data from the buyer's purchase order can be used for the supplier's order information. The buyer's records can be updated with the supplier's invoice. Both enterprises deal with the same information from the same transaction instead of having to enter the information twice.
This feature helps to minimize repetitive tasks and avoid discrepancies in the entire transaction by automating the generation of documents, workflows, and integration with B2B systems.
When the Trading Partners Are Not Connected, How Can AI Help?
Not all suppliers and/or customers will be members of a shared network as a matter of course. While some businesses will still be sending documents via email, PDF or spreadsheet, others will be completely different.
The gap can be closed with the help of AI, which can automate data extraction. It can extract the valuable information from the received documents and convert it to structured data for consideration and action.
This enables companies to minimise manual data entry even if a trading partner isn't connected.
AI extraction is a means to an end, though. If both businesses are linked, information can be transferred directly from its origin, without having to be taken from a separate file.
More Business Connections Lead to More Value
A connected network becomes increasingly useful the more suppliers and customers are networked.
Now suppose that a business has 20 different suppliers. Automation is limited to the single supplier if it's connected. The more suppliers are added, the more incoming quotations, orders, and invoices can be automatically moved.
It's the same for customers. Customers can electronically submit structured purchase orders and electronically receive quotations and/or invoices without the need of manual entry.
With the growing network, businesses save time transferring information and have more time to manage their real business.
The Implications of Scaling Up for Growing Businesses
If the business is involved in many B2B transactions then it has to deal with a lot of repetitive data entry. This can lead to delayed order processing, potential errors, and challenges with maintaining accurate records.
The connected B2B network transforms the way that trading partners communicate. Rather than having each document treated as a unique document to process, businesses can start the automation process with the transaction itself.
Pomanager makes this vision a reality in the business world by allowing suppliers and customers to connect, share documents and conduct business in a single integrated environment.