Deciding on the right EDI services

This is especially true for smaller businesses that are completely new to Electronic Data Interchange. Navigating all the different solution types, message requirements, and varying costs between providers can be a significant challenge. So, decision-makers need guidance in order to make the right choice for their business…

In this blog, we guide you through how to assess what type of EDI service is right for your business and the key questions to consider when approaching different providers.

You’ll learn:

We have highlighted the most frequently asked questions that our team receives from clients when assessing different EDI services. But if you’d like to discuss your unique business needs, then feel free to schedule a meeting.

The beauty of EDI is that there is such great scope and flexibility when it comes to the exchange of important information across your supply chain network.

The two message types that most businesses start with are orders and invoices. As you’ll likely agree, these are some of the most commonly used documents that sit at the core of an organisation’s operations.

Therefore, digitising the exchange of these vital business documents between trading parties can free up valuable time for teams, as well as increase the accuracy and speed of processing.

Whilst orders and invoices may be the base message set to start with, there are a whole array of other EDI message types that you can utilise.

Depending on the EDI protocol you are following, the messages you can exchange will vary. However, there are many similarities in message categories that run across the different protocols, including (but not limited to):

For example, you can view the full list of EDIFACT messages and compare the differences with the list of EANCOM messages.

The EDI message set you require depends on the retail partner you wish to connect with. Your organisation’s internal processes may also indicate the EDI messages and formats that need to be enabled for your systems.

If you are in the process of setting up a trading relationship with a retailer, usually, they will provide you with their set of requirements. This documentation is commonly referred to as a Message Implementation Guide (MIG). A MIG will typically include the EDI message types that they mandate for their suppliers to use, as well as the specific EDI protocol(s) they follow.

We have familiarity with the general EDI requirements for the top retailers and distributors across many industry verticals. You can view our Trading Network to get an idea or talk to our team directly to outline your requirements.

Organisations looking at onboarding EDI services have a choice of strategy. Depending on requirements and the organisational structure, there’s a choice between an on-premise EDI solution or an external SaaS (Software as a Service) provider.

An on-premise EDI solution is often referred to as a legacy system. This is because the technology tends to be older, and therefore, less sophisticated.

Legacy systems are entirely managed in-house by the organisation. This includes the initial technical installation, daily running, and any necessary updates (e.g. security and legislative requirements), of the EDI solution.

The main downfalls of on-premise EDI are that it is:

To avoid all the headaches described above, we recommend that all EDI newcomers onboard with a dedicated SaaS provider.

With SaaS EDI, organisations have an additional choice as to their setup; a web-based EDI portal, or the integration of EDI with existing business systems/applications.

Granted, an integrated EDI solution is slicker by automating even more processes within a business, but it is not always the right choice. Don’t get us wrong, we are huge advocates for integrating automation services, but the business need must warrant it.

We would not recommend integrated EDI solutions to clients that would not fully benefit from it. E.g. organisations wanting an EDI connection for just one trading partner and with simple message types would be much more suited to a web-based platform setup.

With a lower cost and quicker onboarding time, businesses with this simpler setup can get up and running with EDI in next to no time. This is particularly important for SMEs starting with their first big retailer contract that mandates EDI. Speed, cost, and ease of use are vital to maintaining Business As Usual (BAU).

So how to ensure you’re making the right choice for your business? We have summarised some key indicators to help guide you in the right direction.

The number of trading partners you need to connect with through EDI will impact your choice of setup.

An organisation with a large network of trading connections, each with its own message requirements and EDI protocols will benefit from integrated EDI services or middleware EDI to facilitate this scale and complexity.

However, an organisation that only needs simple connections with a handful of trading partners will gain greater ROI (Return On Investment) from a web-based EDI platform.

The type of trading partners your organisation has is also a factor to consider when deciding what EDI services to onboard. Whether your trading partner is a retail marketplace, a third-party warehouse, or a dropship manufacturer could indicate the need for a wide variety of standard and bespoke message types, making integration the most optimal solution.

There can be a lot of smoke and mirrors regarding the cost of business automation and EDI services. This can make comparing providers and solutions confusing for organisations that want to make the most cost-effective choice. Understanding the pricing structures and the determiners of cost is vital before agreeing on a contract.

To support organisations navigating this, we have put together some insight into factors and features that affect the cost of an EDI solution.

Not all EDI solutions are made equal. Understanding the required features and functionalities for your EDI setup will help determine costs:

The vast majority of EDI companies charge their customers to use a Value-Added Network (VAN) to send messages and documents to trading partners. With a VAN, users pay for every transaction, based on the number of characters in a document.

VAN charges can be expensive, they often make it very difficult to forecast how much an EDI solution will cost and companies are often penalised when they grow (and their VAN traffic increases). Companies are also often caught out by the small print, such as minimum record lengths, envelope costs, and more.

This is why when exploring the options available to your business, you must ensure that you understand the costing model and that the pricing of the solution you choose is completely transparent.

At Transalis, we offer this exact transparency, no smoke and mirrors and no hidden fees. The price you’re quoted is the price you’ll pay. Take a look at our EDI solutions or even use our eDI Freedom calculator to work out which is the best option.