Transactions between businesses can be complex. B2B transactions normally involve several different parties, each of whom typically has a different system for invoicing.
Another problem is that transactions might be taking place across countries, currencies and tax systems. Data might also be structured in different formats, which adds to the need for enterprises to put resources towards sorting it all out.
On top of that, most enterprises still deal with paper invoices. It’s easy to understand that errors are thrown into the equation when invoices are handled manually. The chance of human error is multiplied when you think that many organizations themselves are muddled – with each function (finance, procurement) sitting in their own areas with little communication across departments.
Add all of these factors together and it’s easy to see how transaction chaos comes into play.
What can be done to fix this?
Enterprises need a system that’s simple, efficient and streamlined. The problem is a lot of small businesses don’t have the necessary resources to turn invoice complexity into these positive elements of doing business.
The end-goal that enterprises should be looking for is the ability to:
1. Manage profitable relationships
2. Streamline interactions between parties
3. Execute on the transactions themselves
Basware’s solutions help companies of all shapes and sizes to streamline their processes. To do this we suggest a focus on seven key areas:
1. Adopting a single data model so that employees have access to consistent, accurate information. This leads to fewer errors
2. Enabling effective multi-enterprise commerce by allowing key information to pass between companies regardless of their level of technical sophistication
3. Allowing businesses to have more rewarding conversations and overcome disputes quickly, easily and cost-effectively
4. Ensuring organizations can connect to the right systems, avoiding the technical barriers that can hold them back
5. Getting the data and analytics needed to make informed decisions, and gain a 360 degree view of all transactions
6. Achieving true neutrality between buyers and suppliers so everyone can trade freely no matter where they are or what systems they have in place
7. Becoming more agile so that businesses can scale up or down as required
Complexity can be scary, but managed well; can ensure that B2B commerce is an asset rather than something to be afraid of.
Embrace the B2B revolution!