Marketplaces and aggregators will agree that the volume of business and number of B2B invoices raised is staggering. It is a blessing if cash registers are ringing without a break and no one is complaining about it. However, the entire process after an order is received, till the product is delivered seems like a logistics nightmare, not just the first time, but every time. Supply chain managers must be the most overworked lot with humongous caffeine intake to keep their adrenaline going in the high-pressure line of their work.
As an individual, if my juicer breaks down, I will just place an order for a single piece, and that will be delivered to my doorstep in a couple of days. However, the probability of thousands of people ordering the same juicer from popular marketplaces or in-stores is reasonable for the seller to source it from the supplier in advance so that they do not lose on the sales front. This is the reason the B2B sales are always a volume business and represent what goes behind the stalls where consumer goods for individual shoppers are sold. It is a vast network of B2B trades that result in constant buying and selling of goods in bulk and categories so that the shipping cost is reduced. In some countries, B2B sales are also known as wholesale sellers and they propel their business using Order-to-Cash (O2C) Software.
While the stalls might be filled with colorful consumer goods for individual shoppers, behind the scenes, a vast network of businesses is constantly buying and selling goods in bulk. From factories supplying raw materials to retailers stocking their shelves, the volume of these business-to-business or B2B transactions is staggering. It’s like a hidden world of commerce, driving the wheels of the economy.
The days B2B is interchangeably used with D2B or direct-to-business. However, there is a slight difference that B2B involves all transactions that are between two businesses and D2C is sans intermediaries like wholesale stockists. It should be noted that B2B sales are large in terms of the transacted values. However the number of invoices may be more in B2C as there is a larger customer base. The entire volume can easily be handled by using a proper O2C that will help streamline the order management as an end-to-end cycle.
For instance, you step on the favorite toy of your golden retriever and now don’t wish to face your paw-buddy without replacing it. You search for the same toy in the pet toys sections and add it to the cart. You proceed to checkout using your credit card. The merchant gateway checks with your bank before authorizing the payment. Once the payment is finished and the order is confirmed, the online seller packs and ships your doggo’s toy.
You get an alert that your package will be out for delivery on a particular day so that you can make arrangements for it to be received. All the stages are part of the order-to-cash process. Likewise, big orders of B2B are processed using O2C software so that there are no hassles in the next tier and demands are balanced for the product.
Role of O2C In B2B
As B2B’s size and complexity are vast and keep growing owing to the consumption stories worldwide, the crucial role of order-to-cash software is increasingly replacing the traditional enterprise versions that had many gaps. There are many who feel that B2B is higher in terms of value and not a number of transactions and automated O2C is not necessary. However, the benefits of O2C software far outweigh the initial skepticism. The following points highlight why O2C is more efficient in a B2B setting from a scale-based perspective:
- Large Volumes Processed Seamlessly
Automation removes redundant features and repetitive tasks by populating the data from customer records. Invoicing is error-free as it is matched with client details, order copies, discount codes, and other relevant information. If a customer is placing multiple orders and wants the delivery to be staggered, the information is processed likewise without any confusion.
Manual data entry is time-consuming and prone to human errors that occur because of omission or fatigue of staff. Automation frees up the employee’s time and allows them to focus on other interpersonal skill requisites like building client relationships. The software is expandable and can handle large volumes of invoices without creating any lags.
- Customization Is Easy
B2B customers always complain that their vendors do not cater to additional requests that can be expected from B2C partners. However, with O2C software, any specific needs of the customer like an itemized invoice are easily handled through automation that can process the specific needs. When B2B vendors start going an extra step for customers, the loyalty and satisfaction will stay with them for a long period.
- Improved Cash Flows
Timely invoicing helps their customers clear the dues as and when the agreed date approaches. Most customers will be happy to pay the dues to avail of discounted pricing of being a good and steady customer. Automated aging analysis helps in reducing the DSOs and risk is mitigated before its onset.
- Better Compliance
When the invoices are raised in time, the related reports will be generated in a manner that the business is always ready for any kind of audit. The software enables a paperless transaction and leaves a digital trail that helps in tracking every transaction.
Conclusion:
As the world is growing and there is a seismic shift in the way operations are handled using business process automation and BI tools for better efficiency and predictive analysis, staying behind is not an option for anyone who is driven about their business. Using O2C software will help with a scaling business that is bound to become more complex with its growth. Achieving the efficiency levels with growth will matter and the cost-benefit will tip towards the advantages. So, you can rest assured and choose an O2C software for your B2B operations after reviewing the service providers.
