Government is a Major Driver of B2B Commerce
While organizations of all kinds the world over benefit from B2B technology and practices, one of the most prominent is government, according to Bob Cohen, North American vice-president for Basware.
“Governments are forerunners in pushing connected commerce,” he wrote in his column Paythink recently. “More than fifty governments around the world are in the process of implementing e-invoicing mandates and are pushing for a supportive infrastructure to enable agile e-commerce.”
He cited tax compliance and fraud reduction as significant drivers in the push, noting that efficiency and savings were major factors domestically, with the U.S. multi-agency Invoice Processing Platform resulting in a $20 processing cost reduction on federal invoice processing.
For the European Union, borderless commerce has been the goal, he said, with an interoperable e-invoicing standard. Government suppliers must now conform to the standard, which is causing it to proliferate within private industry as well.
Other benefits emanating from government e-commerce include the untethering of financial process, he added, through the exploitation of cloud technology and mobile platforms. Business and supplier networks, experiencing rapid growth, are simplifying and accelerating governmental requisition processes in turn.
Finally, he noted, the increasing demand for real-time payment and financing options by businesses in general have made government uptake of B2B prudent in any case. And the analytics that modern B2B methodologies and systems enable are causing both governmental purchasing systems and suppliers to grow ever more efficient over time.