Order and order response user story

Using eOrders is a key part of streamlining your business administration and creating a safer and more secure way to manage your orders and deliveries. For example, as a buyer you can receive an order confirmation that can be digitally documented with the commitments the supplier gives for the delivery. And as a seller, eOrders can be used to optimise stock and create better delivery security for all customers.
Let's illustrate with a use case.

Order and order response - user story

An SME supplier (NorSupplier AS) from Norway has entered into an agreement with a customer in Finland. The customer uses an ordering solution to send orders to all their suppliers, both domestic and foreign. FinCustomer OY has demanded in the contract that NorSupplier AS must receive an electronic order and send an electronic order response to confirm it. NorSupplier AS has sent an electronic catalogue so the buyers atFinCustomer OY can search for products and services offered from NorSupplier AS in their own ordering solution when they have a need for products and services. FinCustomer OY has a policy that the buyers must choose products that will reduce the company’s environmental footprint.NorSupplier AS has included environmental information on a product level in their catalogue.

A buyer from FinCustomer OY uses the ordering solution's search engine to find products and services. They put the products marked with environmental properties in the shopping basket and add accounting information, e.g., a project number and buyer´s reference, and send the order to their manager for approval. The manager approves the order, and the order is sent to seller digitally. The order contains a unique order number that will be used to match the invoice in the solution. 

The seller receives the order and automatically saves the order into its sales solution or manually registers which products or service FinnCustomer OY wants. 
The solution can perform an automatic lookup against the stock. Based on the available products and services, an order response is created and sent to FinnCustomer OY. If the solution is not capable of a fully automated process, you can create the order response using your solution manually.

The buyer from FinnCustomer OY checks the order response and if the delivery is ok. The next step is the delivery of physical products or services at the specified location. The order in the solution is updated and ready to be used in the matching process against the invoice.

The delivery from NorSupplier AS is received and recorded in the solution. Any deviations are noted so that a fully automatic match of the invoice can take place.

The same process, using Peppol BIS and Peppol Network, can be used for other buyer / supplier relations. This will save time by avoiding using different channels for orders and order confirmations.

  • Uses a system to create an order will streamline subsequent processes, e.g., invoices.
  • By sending an order for approval, the risk of incorrect orders is reduced (you avoid committing the business before approval has taken place).
  • Increased agreement loyalty, traceability, and control for the orders can lead to better prices at the next tender.
  • Buyers receive a standardised order confirmation that can be documented with the commitments the supplier gives for the delivery.
  • It provides the option for an electronic receipt of products using the solution to reduce the risk of loss and also provides orders with updated information to automatically match invoices.
  • Can capture data that can be reused in new tenders.
  • Has the ability to measure purchasing patterns in terms of environmental and social responsibility, which gives the company a better understanding. Environmental information, added to the catalogue, can influence purchasing patterns in the company.
  • Creates reports for the authorities about the environmental footprint, and VAT is more easily calculated when the information is in a machine-readable form.
  • High quality information in digital orders makes it possible to automatically match the incoming invoice against the order that has been sent with the aim of achieving an efficient process, thus saving time.
  • When information is in a solution, an audit can be performed more efficiently.
  • All customers use a uniform way of ordering products and services with the aim of reducing internal costs.
  • Orders in standard format can be automatically imported into the sales solution, thus avoiding manual processing and reducing possible human errors.
  • The high quality of the information from the order will reduce the risk of incorrect delivery. Both parties can document what has been ordered and what has been delivered.
  • An electronic order can be used to create an order response, greater quality and higher efficiency.
  • Data from orders and order confirmations can be used to create invoices.
  • Orders can be usen to optimise stock and create better delivery security for all customers.
  • Increases their turnover.
  • Can send transactions domestically and across borders in one format and via one channel (Peppol Network). This will reduce integration costs by replacing one-to-one integrations with one instead of many.
  • By using a standard format for the exchange of orders and order response, costs are reduced when it comes to solution development.
  • As the market (customers-buyers and suppliers) becomes more mature and arrangements have been made to connect buyers and suppliers more easily via one network, the service is easier to sell to the market.

Nordic SME - what to do to get digital

To get digital means you improve all your processes and become competitive in your national, Nordic and European market using a single solution, not sticking to a manual and inefficient way of communicating with your customers and suppliers. Here are some suggestions for how to get digital:

  • Ask your solution provider if they can send and receive transactions using a standard format (Peppol BIS), and send and receive transactions through the Peppol network, both nationally and across borders
  • If you do not use a solution, you can find a list of solutions that can perform national and cross border transactions here
  • As a supplier it is important for you to be able to present your product and services, not only in your own web shop, but also in your customer’s solution. Look at the solution’s capabilities and ask them to help you send and receive a Peppol BIS order and order response through the Peppol
  • If your solution wants to implement Peppol BIS, they can ask for information from your Peppol authority:

PEPOL authorities

Sweden: peppol@digg.se 
Finland: rte@valtiokonttori.fi 
Iceland: hjalp@fjs.is
Denmark: peppol@erst.dk 
Norway: peppolmyndighet@dfo.no