Why E-commerce Will Remain Just One Part of B2B Order Channels

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.