When to consider changing your EDI provider?

Although moving to a new EDI provider might sound daunting, if your current EDI provider is underperforming, then failing to explore alternative providers could be just as damaging

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Although moving to a new EDI provider might sound daunting, if your current EDI provider is underperforming, then failing to explore alternative providers could be just as damaging. An EDI system that is well designed, secure and reliable, built on sound infrastructure, with a knowledgeable, proactive support team, can deliver substantial cost savings, business benefits and opportunities for organisations at every stage of development and maturity.  

The challenge for many businesses is identifying the EDI provider with the blend of technical, commercial and project management expertise that can deliver the EDI platform that can bring those opportunities to fruition.  

Take a look at this checklist below. If your current EDI provider is not delivering on any one of these performance areas, then it is time to look for a new EDI provider.  

Checklist: Reasons to Change Your EDI Provider  

  • Missed growth targets due to the inability to scale properly.  
  • Loss of customers because of an inability to handle their required capabilities.  
  • Inability to meet ERP or trading partner project deadlines, resulting in delayed payments.  
  • Slow and complex supply chain systems causing monetary losses and wasted efforts on fixes.   
  • Using multiple EDI providers leading to increased costs.  
  • Increased costs from trading partners, such as chargebacks.   
  • Inability to accommodate current or future trading partners, leading to loss of potential revenue.  
  • Manual and resource-intensive processes making the supply chain inefficient and error-prone.  
  • Lack of visibility across the supply chain.  
  • Dependence on multiple disparate systems, increasing overall costs.  
  • Dependency on employee legacy knowledge risking data integrity and potential data loss.  
  • Competitive disadvantage due to current EDI solutions, negatively impacting brand reputation.  
  • Inability to move quickly, affecting mergers and acquisitions or scalability efforts.  

By addressing these points, businesses can evaluate whether their current EDI provider meets their needs or if a change is necessary to enhance efficiency, reduce costs, and support growth.  

Today, 85% of companies, including giants like ASDA, Mercedes and LEGO rely on EDI solutions to thrive amid recent challenges. Your search for the right provider is as unique as your supply chain challenges.  Firstly, it is important to consider if you need support or if you can manage EDI In-House. The complexity of integrating and managing EDI across global partners requires evaluating the level of support needed from a vendor. If you prefer to use a managed service EDI however, you will need to assess whether your vendor handles EDI system management. This should include technical maintenance, transaction monitoring and trading partner specifications.  Should you prefer to manage your EDI in house, consider if your vendor provides tools for EDI management. The integration, oversight, and daily handling will need to be covered by internal teams, therefore it’s important to consider if you have the resources, internal support and costs required for this.  

Secondly consider if you would choose Cloud EDI or On-Premises EDI. The need for flexible, rapid solutions in a changing business landscape supports a cloud-based approach, offering cost-effectiveness and adaptability. However, companies avoiding third-party reliance may prefer the one-time expenses of self-managed on-premises solutions, especially with fully-staffed IT teams.  

Lastly, you should also consider if your EDI provider supports supply chain partners. It is important to consider how a provider benefits existing and future supply chain partners. Your ideal partner will provide an EDI solution that enhances your appeal as a trade prospect. One crucial point to look out for when selecting an EDI provider is whether they support supply partners by offering responsive solutions for global reach. 

Your EDI provider should enable you to build positive supplier relationships. They will utilise their EDI expertise and existing integrations to help your organisation to gain network-wide visibility.  This also encompasses efficient onboarding and offboarding. It is crucial to choose an EDI provider who offers faster onboarding whilst accommodating wide-reaching communication protocols. These specifications are ideal for dynamic supply networks and cannot be overlooked when choosing your EDI provider.  

On-Premises EDI Solutions. On-premises EDI solutions are deployed on-site via in-house servers. An on-premise EDI is more suitable for companies with existing EDI experience or small supply chains.   

Cloud-Based EDI Solutions. Cloud-based EDI can be accessed via a network connection they are often thought to boost efficiency, visibility and collaboration in an organisation’s operations. Examples include EDI via VAN (Value Added Network) and Web EDI.

Key Takeaways

  • If your current EDI provider is hindering your growth targets or losing customers due to inadequate capabilities, it might be time to consider a change.
  • Evaluate your resources, expertise, and budget to decide the best EDI Provider for your business.
  •  Choose Between the flexibility of Cloud-Based or the control of On-Premises EDI Solutions
  • Choose an EDI provider who will support your  supply chain partners and be a partner you can grow with.