New Strategies

Using B2B Outsourcing to Manage the ERP to B2B Integration Process

by Mark Morley

Managing the integration of ERP and B2B systems is a complex process. ERP systems are typically at the heart of many business processes. B2B systems manage electronic business transactions across many trading partners. Trying to integrate these two systems, while trying to maintain continuity of business processes, can be a difficult task to manage. Ensuring that all users have access to one consolidated view of real-time enterprise information allows a company to make improved management decisions. Integrating ERP to B2B systems also helps to improve the flow of information across enterpriserelated business processes.

The ideal time to re-evaluate the integration strategy between ERP and B2B platforms within a company could be following a divestiture or restructuring process or perhaps when switching to a new ERP system provider. Starting with a clean sheet of paper can have many advantages. Many companies today are starting to realize the benefits of ERP and B2B integration, especially when trying to consolidate numerous instances of an ERP system which may be housed in different locations around the world.

ERP and B2B integration projects need to be implemented across the extended enterprise—from internal users across many different departments through to customers, suppliers, logistics partners, distributors, retailers and service organizations. Managing the integration expectations of all these different users can be a challenge, especially if the users are spread around the world.

ERP and B2B integration projects quite often require a set of specialized skills that may not exist within a company’s IT department. One of the key resources that is required during an ERP-related project is mapping. Maps will typically need to be rewritten during an ERP upgrade and most companies do not have access to numerous mapping resources in order to get the work completed in a short period of time. Using outside mapping resources could be a more cost-effective way to achieve this. If the correct resources are not put in place, then delays can be experienced during new ERP rollouts or upgrades.

Due to the demands placed on a company’s IT resources during an ERP-related project, outsourcing the management of a B2B infrastructure and any associated integration to an ERP system can bring significant operational and financial benefits to a company. Quite often, B2B outsourcing vendors can effectively act as an extension of a company’s IT department. What are the key drivers for companies who may want to integrate their ERP and B2B systems?

• ERP data is sourced externally
• Data quality compromises ERP value
• Poor B2B integration limits visibility
• High B2B availability is critical

ERP Data is Sourced Externally—ERP systems use information from a variety of external sources: customers, suppliers, distributors, logistics providers and financial services institutions. Whether it is receiving an advanced shipping notice, an invoice, a customs declaration form or payment information from a bank, external data feeds need to be highly available, otherwise this will prevent the ERP platform from running efficiently.

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