Direct B2B Integration

Direct B2B Integration means your organisation selecting a software vendor based on your business requirements and the use of internal resources to implement, manage and support the B2B Integration solution. Typically companies can expect to pay vendors license fees, 18-25% of the license price in annual maintenance then cover the cost of implementation, training, management and support using internal resources.

Running a project in this fashion can yield increased control of B2B Integration projects. Should a customer or trading partner make a request, it’s your own resources that can respond to meet the requirement. The only limitation is your own IT budget or the number of resources you have applied to respond or manage inbound requests.

In the direct model, companies can leverage recent internet connectivity standards such as AS2 to ensure efficient real time connections with trading partners. The direct model was the model of choice approximately five years ago, when companies elected to bring in-house B2B Integration project in order to reduce third party costs and increase control. Typically, such companies made this choice in the face of the only real alternative at the time – the EDI Value Added Network (VAN). The EDI VAN had for years offered secure reliable exhange of business information across global supply chain communities, but VAN vendors prices were perceived as expensive and the solution lacked the support of internet technologies and real time processing.

When managing Direct B2B Integration, companies must consider the total cost of implementing, managing and supporting the solution. Your IT resources will have to manage requests from trading partnerships and if your community is large and globally located, challenges could be presented in administration and support. Consider carefully if you have multiple trading partners each with their own requirements for B2B Integration – while the upfront investment may look advantageous, such a footprint may end up to be a drain on internal resources.

Advantages

  • Direct control of B2B Integration
  • Real time, scalable infrastructure
  • Lower EDI VAN charges

Challenges

  • Administration and management of trading partners
  • Resources must support the application
  • Potential rise in total cost of ownership (TCO)