# Ordering

Based on success with automation of invoicing, there is a growing interest in automation of the ordering process as well. This approach has two dimensions: Support further automation of invoicing and using structured catalogues as basis for ordering. Implementing electronic ordering is an important step for many companies towards full procurement automation.

For the sellers, the approval, picking and invoicing can be automated significantly.

For the procuring agency, approval and accounting of invoices can be automated and ordering can be structured by use of catalogues.

Other potential benefits of electronic ordering are, among others:

• Can be used by procuring agencies as step towards automation of procurement. The flexibility of the specifications allows the buyers to gradually automate and structure ordering, based on a cost/benefit approach.
• SME can offer their trading partners the option of exchanging standardized documents in a uniform way and thereby move all orders into electronic form.
• Large companies can implement standardized documents for general operations and implement custom designed bi-lateral connections for large trading partners.
• Can be used as basis for restructuring of in-house processes of orders and invoices.
• Significant saving can be realized by the procuring agency by automating and streamlining in-house processing.
• Significant saving can be realized by the sellers by automating and streamlining in-house processing. Linking to picking and invoicing can be improved significantly based on increased order quality, restructuring of invoice dispute resolution and shorter payment cycles.
• For the procuring agency, invoice automation and ordering can be structured.

When implementing electronic ordering, it is common to decide between one of the three processes listed below.

This is the simplest, most straight-forward of the three. It is a one-directional flow of electronic purchase order from a buyer to a supplier.

sequenceDiagram

    participant c1 as Buyer P2P
    participant c2 as Supplier O2C

    Note over c1, c2: Order only
    c1->>c2: Order

The order only process includes the following document types: Order.

This is slightly more advanced, and adds an order response document that is sent back/returned from the seller to the buyer with a suitable business response.

This is the most common electronic order process today.

sequenceDiagram

    participant c1 as Buyer P2P
    participant c2 as Supplier O2C

    Note over c1, c2: Ordering
    c1->>c2: Order
    c2->>c1: Order response

The ordering process includes the following document types: Order and Order response.

The most complete but also most complex process of the three. Not only does it give both trading partners full visibility and traceability into the whole order process, it also enables the buyer to change or cancel existing orders electronically.

sequenceDiagram

    participant c1 as Buyer P2P
    participant c2 as Supplier O2C

    Note over c1, c2: Advanced ordering
    c1->>c2: Initial order
    c2-->>c1: Order agreement
    c1-->>c2: Order change
    c1-->>c2: Order cancellation
    c2->>c1: Order response 

The advanced ordering process includes the following document types: Initial order, Order agreement, Order change, Order cancellation and Order response.