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.

Subject: Proposal for Implementing Backoffice AI to Boost Sales Efficiency

Dear [CFO’s Name],

I hope this message finds you well. I am writing to propose an initiative that can significantly enhance our sales efficiency and drive revenue growth: the implementation of Backoffice AI for our sales team.

The Challenge

As you know, our sales representatives thrive on selling and building customer relationships. However, a significant portion of their time is consumed by administrative tasks, particularly order entry. This manual process, especially for orders received via email, is not only tedious but also time-consuming. It's a bottleneck that hinders our sales team from focusing on their primary role—selling.

The Solution: Backoffice AI

Backoffice AI can revolutionize our order processing by automating the extraction of order details from emails and entering them into our system. Here’s why I believe this implementation is crucial:

• Efficiency Boost: By automating order entry, we can significantly reduce the time our sales reps spend on administrative tasks. This will free them up to engage more with customers and close more deals.
• Error Reduction: Automated data entry minimizes the risk of errors, ensuring that our order processing is more accurate and reliable. Catching errors early in the process prevents costly processing, shipping, and error resolution expenses down the line.
• Enhanced Focus: Sales reps can review orders for accuracy without getting bogged down in data entry, allowing them to maintain their focus on high-value activities.
• Better Use of Technology: Implementing Backoffice AI aligns with our goal of leveraging advanced technology to improve efficiency and decision-making. This is a great opportunity to experiment with AI to improve our sales and order processes.
  
  

Proposal for a Trial

To ensure that we can build a solid financial model for a general rollout, I propose starting with a trial phase. This will allow us to:

• Assess the effectiveness of Backoffice AI in our specific context.
• Quantify the time savings and error reduction.

By analyzing the results of the trial, we can develop a comprehensive financial model that demonstrates the ROI and supports a company-wide implementation.....and the Backoffice AI team will take on the work of doing the financial modeling for us.

Next Steps:

I recommend initiating a trial phase with a select group of sales reps. This trial will provide the data we need to make an informed decision about a full rollout. I am confident that the results will speak for themselves, showcasing the significant benefits of this investment.

I look forward to discussing this proposal with you in more detail and obtaining your approval to proceed with the trial.

Thank you for considering this initiative.

Best regards,

[Your Name]
[Your Position]
[Contact Information]

Sales representatives thrive on selling, not paperwork. Every single great sales rep that I have worked with HATES paper work. So, reducing their administrative burden can significantly increase your revenues and their job satisfaction. Here’s how:

Sales reps are most effective when they concentrate on selling. One of the most tedious and time-consuming tasks for them is order entry (followed by Quoting). Manually processing orders, especially those received via email, can be a huge pain, taking up valuable time that could be spent on more productive activities. This is where back-office AI can make a significant difference.

By automating the process of extracting order details from emails and entering them into the system, AI can dramatically reduce the effort required for order processing. Sales reps can always review the orders to ensure accuracy, but they no longer need to spend hours on data entry. This automation not only saves time but also reduces the likelihood of errors, making the entire process more efficient.

Reducing administrative tasks for sales reps enhances their ability to sell, increases job satisfaction, and drives revenue growth. Investing in Backoffice AI to automate your sales admin processes can unlock the full potential of sales teams, leading to greater business success. Contact us to learn how.