Regardless of whether a business operates in the real world or online, the power to connect applications and processes with those of their supply chain partners is a necessity. While many traditional companies have been through the trenches when it comes to establishing their supply chains, there are far more online merchants struggling to understand how it works. As their businesses continue to grow at an incredible pace, online companies are realizing that Business Interoperability is more than just a matter of customer service or operational efficiency. It is a matter of survival.
The most basic definition of Business Interoperability is the ability to exchange information, and most companies are able to do this today using a wide range of technical solutions, from EDI to XML to value-added network services. But as more and more business is conducted electronically, the definition of Business Interoperability needs to be expanded. Companies have the ability to share data, but are they confident that the information is accurate, up to date, and being shared in an efficient manner? Is it in a format that all of their trading partners are able to process? And most importantly, how can companies achieve tighter integration with trading partners to reduce the risk of human error?
Traditional companies want to squeeze every last penny of cost out of the supply chain. Online companies are eager to plug into the supply chain as a matter of survival. And the savviest among all these companies are looking for ways to transform their supply chain into more of a profit center. We see these trends often in the retail sector, where the large retailers are imposing more and more demands on their suppliers to synchronize product information and tighten up business processes, and manufacturers are putting pressure on their resellers to be more active in marketing their products. By improving their Business Interoperability, companies can meet these demands and gain an all-important competitive edge in what is an increasingly “virtual” supply chain.