Size Doesn’t Matter to Donkeys

Should it to you?

When it comes to treats, my donkeys don’t seem to care how big the cookie is – just that they are getting something.  Thus, I keep my donkeys lean and my costs low by breaking their special horse treats in two before letting the boys scarf them down.  Likewise, I break our dog treats in 2 or 3 before dispersing to the pack.  Polly in particular has benefited from a lean diet supported by pieces of biscuit as opposed to the whole thing.  Of course, I could just purchase smaller treats, and sometimes I do.  But what about your company?  When it comes to your EDI and B2B programs, do  you go for the small provider or the big one?  For you, does vendor size matter?

In recent articles in EC Connexion and the VCF Report, I outlined my thoughts on the pending GXS/Inovis merger.  In the former I focused more on the B2B practitioner and what it might mean for them.  In the latter I leveraged some of the first and provided a higher-level view focused on the business and managerial reader.  In both I pointed out that what you get out of the merger depends on how you and your company reacts.  There is enormous potential in the merger, but companies will only benefit if they hold the new company accountable for brining the right mix of solutions to the table – a mix the merged company will have access to, but might not fully exploit.

However, this merged company will be best positioned of all extant B2B players to provide the full end-to-end services on a global basis.  In fact, others who claim to be global will – when you look under the hood – only have one or two people in emerging markets like China, India and Brazil where the merged company will have significant resources in those locations.  In this case, size does matter.  If you have global operations – whether it be your own enterprise or companies in your extended supply chain (supplier, supplier’s supplier, customer, customer’s customer) you must consider the ability of your B2B partner to help you manage that ever changing supply chain as you move production from country to country and from far offshore to a mix of far and near shore manufacturing, and as you change your mix of carriers as production changes. 

Successfully implementing, maintaining and managing a global business requires that your partners be there – and that they have been there doing what you need done for a while.  You need them to be smarter than you when it comes to new countries and new regions.  There is no use partnering if the partner can’t bring something to the table.  There isn’t another B2B player that has the global reach within their own organization than the GXS/Inovis merger will bring.  Much of that comes from GXS, but with the addition of Inovis’ unique solution offerings, the global capabilities of the merged company will be significant. 

No matter the size of your business, if you do business globally, size should matter to you.  There are other fine players in the space – Tie Commerce is one smaller player with strength in Europe, the US and Brazil – but if you truly need round-the-world visibility, accountability, presence and capability, your partner’s size will matter.  Don’t underestimate the knowledge that doing business in a country can bring, or that being able to do business in nearly 20 languages can get you.  Legal, business and technical knowledge are all there for leveraging.  The question is, if size does matter and you choose the merged company, will you demand that they leverage their size (both global presence and overall solution set) to help you do business better with enhanced global visibility, data quality and synchronization, compliance management and full, uninterrupted end-to-end automation?  Or will you just ask them to do what you’ve always done – automate purchase orders, invoices and ship notices and call it a day.  If that’s all you do, your stakeholders won’t be happy and, when it comes to your B2B partner, size really won’t matter after all.

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