B2B portals enable companies to efficiently integrate resources across a pipeline from suppliers to final customers by reducing the back and forth communication inefficiency associated with invoicing, payments and stock movements. As goods travel up and down the supply chain, paperwork is sent back in its place; integrating computer systems, or using a platform that interfaces between each system, reduces the time spent on such data transactions.
The use of B2B portals extends beyond processing invoices and payments however. Tighter integration of stock management systems enables interchange of additional data, allowing each link of the chain to offer their customers an enhanced service.
Taking the example of a river again, the supplier at the start of the chain may experience an increased cost for one of their raw materials. In a traditional scenario, the supplier needs to get the message to each of their customers downstream. The message can be sent to customers early, or when they place their order, which can delay the purchase. Either way, pricing updates will cause a lag for each member of the chain. The same situation applies if the cost of raw materials drops.
Using an integrated supply chain management platform, any supplier in the chain can update their prices and the changes will be immediately reflected in the purchasing systems of their customers. The delay in transmitting pricing changes upstream and downstream is negated.
By allowing for immediate pricing updates to be automatically shared between systems, each supplier and buyer will be able to see at a glance what the up-to-the-minute price of any component is. This will allow them to provide accurate prices and quotes to their own supplier. And by making pricing transparent between supply chain partners, a high degree of trust can be built into the chain.
To find out more about how a B2B Portal could benefit your business and those of your supply chain partners, please give us a call.