Backoffice AI Blog

While e-commerce continues to grow in importance for B2B sellers, it's crucial to understand why it will likely remain just one component of the overall order mix. The reality of B2B ordering processes is deeply rooted in established technical systems and workflows that continue to serve businesses effectively.

EDI: The Hidden Giant of B2B Orders

Electronic Data Interchange (EDI) accounts for a substantial percentage of B2B orders, particularly among larger organizations. This often-overlooked system continues to dominate for several reasons:

• Direct integration between buyer and seller systems
• Automated processing of routine orders
• Established standards that work across industries
• Deep integration with existing ERP systems
• Efficient handling of large, recurring orders

Many major retailers, manufacturers, and distributors have invested heavily in EDI infrastructure over decades, making it their preferred ordering method.

ERP Systems and Purchase Order Workflows

For companies not using EDI, the ordering process is typically driven by their Enterprise Resource Planning (ERP) system's requirements and workflows. Here's how this commonly works:

1. Purchase Orders Must Start in the ERP
   • Companies require all purchases to be initiated within their ERP system
   • This ensures proper approvals, budget tracking, and audit trails
   • The PO creation process is integrated with inventory and accounting functions
2. Email-Based Order Submission
   • Once approved, many ERP systems automatically generate purchase order documents
   • These systems often include functionality to email the PO directly to vendors
   • Buyers are accustomed to this workflow as it maintains their internal controls
   • Sales representatives receive these emailed POs and process them in their systems
3. Phone Orders
   • Many buyers still prefer to call in orders, especially for:
     • Complex or rush orders requiring immediate attention
     • Orders needing special pricing or terms
     • Situations requiring clarification or technical discussion
   • These calls are often followed by emailed PO documentation

Where E-commerce Fits

Given these realities, B2B e-commerce serves important but specific functions:

• Product research and discovery
• Access to technical documentation and specifications
• Simple reorders of standard items
• After-hours ordering capabilities
• Self-service for smaller, straightforward purchases

Planning for Multiple Channels

Successful B2B sellers need to accommodate all these ordering methods:

• Maintain robust EDI capabilities for large customers
• Ensure sales teams can efficiently process emailed purchase orders
• Provide phone ordering options with trained staff
• Offer e-commerce as an additional channel for appropriate situations

Looking Forward

While e-commerce platforms continue to evolve, the fundamental nature of B2B ordering systems means that EDI and ERP-generated purchase orders will remain significant portions of the order mix. However, new AI technologies are revolutionizing how these traditional ordering methods are processed.

For example, Backoffice AI offers innovative solutions that streamline the processing of emailed purchase orders. Our technology:

• Automatically converts PDF purchase orders and other order documents into actionable data
• Eliminates manual data entry and associated errors
• Validates imported data to identify inconsistencies before processing
• Seamlessly integrates the extracted order information into existing ERP systems
• Reduces order processing time while improving accuracy

This type of AI-driven automation represents the future of B2B order processing - not by forcing customers to abandon their preferred ordering methods, but by making the handling of these orders more efficient. Successful organizations should focus on:

• Supporting multiple ordering channels efficiently
• Understanding which customers prefer which methods
• Ensuring smooth processing regardless of order source
• Maintaining flexibility to meet varying customer needs
• Implementing AI solutions like Backoffice AI to automate manual processes
• Continuously improving order accuracy and processing speed through automation

The key to success isn't maximizing e-commerce adoption, but rather ensuring that all ordering channels - EDI, emailed POs, phone orders, and e-commerce - work together seamlessly to serve customers effectively. With AI-powered solutions handling the conversion and validation of traditional order documents, companies can maintain their customers' preferred ordering methods while dramatically improving their internal efficiency.

Backoffice AI offers efficient integration options for businesses looking to streamline their order processing. This article explores how our platform can integrate with your existing systems to automate data extraction from order emails.

The Advantages of Integration over Manual Data Entry

1. Increased efficiency and speed in order processing
2. Improved data accuracy by eliminating human error
3. Scalability to handle growing order volumes
4. Better resource allocation, freeing staff for strategic tasks

Integration Methods

Backoffice AI offers two primary integration methods:

1. API Integration

Our API allows direct access to extracted order data, offering:

- Flexibility in data utilization
- Real-time updates
- Seamless incorporation into existing workflows

This method is ideal for businesses with an EAI tool / middleware app or ability to integrate directly from their existing systems.

2. Pre-built Connectors

For quicker implementation, we offer pre-built connectors for popular systems including:

• Shopify
• BigCommerce
• Magento
• Acumatica 
• NetSuite

These connectors provide a plug-and-play solution, reducing integration time and complexity.

Choosing the Right Integration Approach

Consider these factors when selecting an integration method:

• Current systems in use
• Order volume
• Available technical resources
• Future growth plans

Additional Benefits of Integration

Integrating Backoffice AI can lead to:

• Improved customer satisfaction through faster order processin
• Enhanced business intelligence from centralized, digitized data
• Competitive advantage through operational efficiency

Conclusion

Integrating Backoffice AI with your existing systems offers significant improvements in efficiency, accuracy, and scalability. Whether you choose API integration or pre-built connectors, our solution can adapt to your specific business needs.

For more information on integrating Backoffice AI with your systems, please contact our support team.

Business customers today expect the convenience of self-service portals from manufacturers and distributors. They want to look up product information, check product availability, view pricing, pay invoices, check order status and shipment information without waiting for a response from customer support or a sales rep. However, a significant hurdle remains to getting customers online: many customers still send email orders from their internal systems, avoiding the hassle of entering data twice—once in their system and again in the supplier’s portal. Here’s how manufacturers and distributors can enable effective self-service while addressing this challenge.

The Need for Self-Service

Business customers are used to quick and easy online tools in their personal lives and expect the same at work. A good self-service portal offers:

• 24/7 Access: Customers can get product details, check stock, see prices and look-up order details anytime.
• Simplified Ordering: Streamlined processes save time (even if they still send email orders)
• Easy Payments: Online portals make paying invoices faster and easier.

The Double Entry Challenge

Customers often place orders through their own systems, which then send these orders via email. Asking them to re-enter orders into a separate portal is inefficient and error-prone. To overcome this, suppliers must provide solutions that integrate smoothly with customers’ systems.

Strategies to Avoid Double Entry

1. System Integration:

   • Develop APIs that connect customer order systems with the supplier’s portal.
   • Use middleware to ensure orders placed in the customer's system are automatically transmitted to the supplier's portal.

2. Electronic Data Interchange (EDI):

   • Implement EDI to transfer orders automatically from customer systems to supplier systems.
   • Highlight EDI benefits like fewer errors and faster processing.
3. Transform Email Orders to Digital Orders
   • Deploy AI Tools to turn Email Orders into regular Digital Orders 
   • Backoffice AI can help you with this.
4. User-Friendly eCommerce Sites:

• • Design intuitive, easy-to-use eCommerce sites / user portals.
  • Offer training and support to help customers get started.

Conclusion

Shifting to self-service portals in the B2B world is challenging, especially with the issue of double entry. By support customers’ processes and "the way that they do business" and providing user-friendly tools and AI Order Email transformations, manufacturers and distributors can make this transition smoother. These strategies will enhance customer satisfaction and streamline operations, benefiting everyone involved.