B2B Integration : A Practical Guide to Collaborative E-commerce

Components, Benefits, Challenges and Applications of B2B Integration 33
customer demands. B2Bi makes it faster, easier and safer for companies
to bring into their ambit new associates and automate cross-enterprise
business processes with them. Only a tightly integrated and highly
automated organization can have this level of flexibility and adaptability
to newer partners.
2.3.2. Real-time information
B2Bi enables the secured exchange of real-time partner-specific and
task-specific business information over the Internet, which has unlimited
benefits. It gives companies the 'power of now'.
As an example, let us assume that a company has seamlessly
integrated its logistics system with all of its major shipping vendors.
With this integration, the company will have a consolidated real-time
view of shipments from multiple vendors. Even the company's direct
customers can securely access up-to-the-second shipping information
through its corporate Website or via direct B2B links.
2.3.3. Lower transaction costs
Through B2Bi, companies reduce not only the B2B transaction costs
but also the complexity associated with them, while maintaining complete
business logic.
We are not talking about some small savings here. By exchanging
business transactions electronically, companies can save as much as
80% of the costs associated with conducting these same transactions
on paper.
According to a recent report from Goldman Sachs, Ford and GM,
companies predict a savings of up to 20% from their Internet-based
supply chain management systems. Likewise, British Telecom expects a
90% per transaction cost savings from its B2Bi efforts.
The report also stated that currently less than 0.5% of all intercompany
transactions take place electronically. By 2004, this number is
expected to be more than 10% driven by the cost savings associated
with e-commerce.