What are B2B Managed Services?

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 of the major marketplaces have become increasingly global, the exchange of information with growing trading communities in different regions of the world has become exponentially more complex and therefore more expensive.

At the same time, early successes in automating simple documents such as invoices and purchase orders have demonstrated how business processes could be successfully re-engineered. This has led to an extension of B2B solutions which are found deeper into the business functions of organisations, an example of this would be providing supply chain visibility all the way 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 their business.

Instead, the ability to engage a third party B2B supplier, such as GXS,  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 is best for your organisation.

If you would like to learn more about B2B Managed Services and how it can help your company then please visit our dedicated microsite www.b2boutsourcing.co.uk.