Midmarket supply chains are going digital
Midmarket companies are outpacing their enterprise counterparts in digital transformation. Here’s why.
In the face of pervasive supply chain disruption, including the COVID-19 pandemic, businesses of all sizes have been forced to adapt quickly and find new ways to operate more efficiently. While this has spurred increased investment in B2B integration overall, it’s notable that smaller and midmarket companies are now accelerating their investment in digital transformation at a greater rate than larger companies.
Prior to the pandemic, many midmarket companies improvised with a patchwork of limited EDI solutions and manual processes. For many, going digital seemed too daunting, the risk of disrupting “good enough” processes too great, and the lack of understanding of how and where to begin too confusing. However, pandemic lockdowns and remote work quickly changed the midmarket mindset, and now they are playing catch-up.
The fact that midmarket companies are embracing digital transformation is particularly remarkable given the additional challenges these companies often face, including a need for more resources and expertise and competing priorities. But these companies also realize that streamlining and increasing the breadth of their trading partner can both protect existing business and expand their reach to grow their business.
One major way that mid-market companies have found success is by shifting to digital and automating more of their transactions. Automation offers clear benefits for midsize companies by streamlining processes and allowing these companies to grow more quickly.
For very simple EDI connectivity, basic EDI solutions may suffice. However, there’s the option of enterprise-level B2B managed services for more complex internal and external integrations. However, that leaves the midmarket to determine which type of EDI or B2B integration solution is best for them. The answer for many companies may lie in a single solution that offers a customizable combination of approaches.
Boosting digital transformation by investing in a digital foundation
In a recent paper by Supply Chain Brain, the authors suggest looking into a cloud-based scalable B2B integration platform, “Whether you choose a self-service integration service or a fully managed one, the switch to cloud-based, fully integrated technology is no longer a luxury in today’s supply chain but an imperative,” they write.
A scalable, cloud-based digital foundation can integrate both internal and external data sources in one platform to ensure quality data exchange and visibility down the supply chain while reducing resource-intensive B2B management. By adopting these types of solutions, midmarket companies are increasing collaboration across their supply chains, streamlining processes and solving problems in real-time. Importantly for the budget-conscious, a scalable B2B integration platform provides an entry point for the midmarket. These companies may need more time to be ready for a fully managed service but need to feel confident in their purchase of a future-proof digital foundation that is resilient in changing market conditions and scalable for business growth.
For the midmarket scalable B2B integration offers many additional benefits
In addition to the well-known benefits of EDI, scalable B2B integration offers these added advantages:
- More scalable: Easily and quickly onboard new trading partners, comply with local and international standards, add and remove users and integrate internal applications as needed.
- More self-service: Balance your resources and match your budget to your needs. No more waiting for IT or third-party vendors to get back to you.
- More secure: Cloud-based platforms are typically more secure than on-premises solutions, including non-repudiation, physical security, data encryption and security audits.
- More reliable: Seek a provider with multiple data centers on different continents to ensure business continuity and fast, reliable completion of mission-critical business transactions.
- More resilient: Be more responsive to changes in the market, scale the size of your global reach and manage complexity as your business grows or quickly change direction in the face of disruption.
OpenText has helped over 35,000 companies, large and small, create more resilient supply chains.
Speak to one of our experts today to help you plan the next best steps in your digital journey.