Overview of BX SupplierConnect
BX SupplierConnect is a fully managed Web-based data exchange service that enables Oil & Gas Suppliers to send and receive orders-to-cash business documents such as Orders, Invoices, and Remittance docs. It takes P2P trading documents from both Oil & Gas Suppliers and Operators then translates it to the trading partner’s desired format, thereby automating the process which results in process efficiencies and cost savings for both partners.
Business Xchange has been providing electronic invoice, purchase order, and B2B document exchange services for over 25 years. We realize that one of the major components to orders-to-cash initiatives within the Oil & Gas Industry is a smooth and efficient customer on-boarding process.
25 years of experience in AR Automation has given Business Xchange a unique advantage in dealing with, and providing, cost-effective solutions to the many challenges that Oil & Gas Suppliers face when trying to reduce Days Sales Outstanding and automate many inefficient Order to Cash processes.
BX SupplierConnect utilizes BX Onboarding methodologies and best practices to significantly reduce customer onboarding times. In certain cases we have reduced the onboarding process by as much as 80 percent, which represents a significant win to Suppliers.
BX Onboarding delivers efficiencies in Order to Cash Management through technology, data transmission, business processes, and people. Coupled with this is Actian Business Xchange’s 10 years of Onboarding experience that is specific to the Oil and Gas industry.
Common Challenges and Issues Facing Oil & Gas Suppliers
The main challenges and issues that affect Oil & Gas Suppliers include:
- Inefficient Order to Cash document transfer processes result in unnecessary costs to both Supplier and Operator
- Delays associated with processing and approving invoices result in higher Days Sales Outstanding
- Increased DSO figures can often cause working capital shortages and unexpected cash flow needs
- Lack of transparency on invoice status can result in frustration between Supplier AR teams and client AP teams
- Slower than anticipated invoice payments negatively impact relationships between Suppliers and Operators
- Lack of Order to Cash automation results in higher administrative and IT overhead that could be utilized on other initiatives and projects
Oil & Gas Suppliers are continually striving to build better relationships with Operators. There are a number of ways these relationships can be improved, including: better communication, sharing best practices, improving performance levels, and better Health and Safety records. One of the main challenges remaining within these relationships is delays with Supplier invoice payments, which come up time and time again at quarterly performance reviews.
Operator payment terms specified in Supplier contracts can be 30, 45, or even 60 days; but whatever the terms are, this figure is rarely met on a consistent basis. While there are a number of reasons why this pain point exists, it often falls back to inefficiencies in the AR / AP process and partner infrastructure shortcomings. The Supplier Accounts Receivable departments are monitored by KPIs such as Days Sales Outstanding (DSO), and while they strive for meeting their targets the supplier payment terms are rarely being met. This has an ongoing negative impact on the working capital cash flow of Suppliers.
To view more issues and challenges faced by Stakeholders Click on the relevant link below.
Benefits of BX SupplierConnect
Oil & Gas Suppliers receive many benefits from using Pervasive BX SupplierConnect, including:
- Significant Reductions in Days Sales Outstanding
- Automating the invoice sending process and reducing costs associated with inefficient Accounts Receivable (AR) processes
- Speeding up Invoice to Cash cycle — reducing Days Sales Outstanding and improving overall working capital
- Reducing inefficiencies within AR process including rework, validation, and error processing
- Providing a transparent communication and information sharing layer to make invoice status visible to clients
- Better cash flow management with no late or rejected invoice surprises
- Improving efficiencies and freeing up AR and IT resources
- Better Operator relations and more productive quarterly performance reviews as DSO has been removed from discussions with our clients
- Improvements in overall client relations
- Significant cost savings over alternative EDI and paper based systems and processes
- Potential to free up IT to focus on other initiatives
- Operator on-boarding completed up to 80 percent faster
- Potential cost savings over traditional EDI
- Automated B2B document transfer and validation results in decreased administrative costs
- Managed cloud based service results in decreased IT Costs
- Increased uptime reliability as service is cloud based with Microsoft Azure
To view role specific benefits from BX SupplierConnect by Stakeholders click on the relevant link below.
Features of BX SupplierConnect
The main features of BX SupplierConnect have been carefully planned and developed with over 25 years of close cooperation with Suppliers.
The main features of BX SupplierConnect include:
- Automatic document transfer – Ability to receive and deliver your documents in your trading partners preferred file format (PIDX, EDI, SAP iDoc, XML, CSV, etc.)
- Batch file processing offering the ability to either transmit documents in batches or by upload facility
- Custom validations including 3-way document match
- Prior to delivery, specified fields in the transaction are checked against information contained in validation tables
- Validation checks can also include required field checks, data type checks, in balance checks, and other more customized validations
- Account information monitoring, order status, invoice detail reports, and purchase history records updated 24/7 for you and your trading partners
- Efficient and proven methodology for fast onboarding of trading partners
- Auto archive capability extendable to many years
- KPI Dashboards for tracking a range or Order to Cash metrics including: orders, invoices and remittance processing times, and associated KPI trends
For a full overview of BX SupplierConnect modules
New Technologies & the Impact of PIDX Standards
As Suppliers explore and adopt new technologies and streamline the AR process to improve cash flow associated with outstanding invoices, they are increasingly looking for more efficiencies and AR cost savings. This may even include mandating their Operators to conform to standards such as PIDX for streamlining the data transfer of field tickets, orders, invoices, payment remittance, and a myriad of other documents. The PIDX standard used in combination with the elimination of inefficient stages in document flow, gives AR departments a far better chance of reducing the gap to meeting the DSO KPI targets set by their CFOs.
In addition to helping reducing the DSO gap, the PIDX standard offers further savings for the internal IT team responsible for implementing, automating, and supporting the AR Systems. Pervasive customers have achieved up to 80 percent faster enablement of their Operators as a result of the unique methodologies and best practices Pervasive adopt when implementing BX SupplierConnect for Suppliers using the PIDX standard.
BX SupplierConnect uses a wide range of PIDX standards. For a full list of supported PIDX standards click below.