Breaking EDI Myths – Considerations, Implementation, Cost And More
It’s Halloween time, but we’ll tell you no scary or horror tales. Only true stories about how businessmen avoid EDI implementation. Really…They are missing so many opportunities because of EDI myths we are going to break now.
Today we will try to show you that shifting to EDI may be painless and comfortable. Many companies usually have some EDI considerations and questions like “Do we need it?”, “How much will it cost” or “Will we benefit from this?” and often get wrong answers. A qualified explanation of EDI integration steps including investments amount and the volume of positive benefits may reveal all hidden points and help to make the right decision.
- EDI cost. For many people EDI integration or implementation may seem costly at the first sign. Of course, shifting to EDI is expensive, but the cost may be tailored according to your company’s actual needs and transactions volume. A small company can start from a couple of transactions using third-party EDI service, and after some time start smooth further EDI integration. Anyway, the result will show that it really worth it. Also, EDI cost may be justifiable in cases when large hubs refuse to work with small- and middle-size supplying companies who do not support EDI. This leads to market loss and closing off potential business sources for such suppliers which is more expensive than implementing EDI solution. A good painless way of EDI integration is EDI outsource. If your company has not many transactions in operation, you can choose a third-party company for programming, mapping and sending transactions.
- EDI is considered a complicated process and many companies are trying to avoid this integration. Any new practice may be considered a difficult and even “unreal” task. However, EDI integration really streamlines your business – you only need to take the first step. Step by step integration will change all the processes in your company and you will see how the internal operation can be forced. Moreover, your communication with your business partners will become easier and more productive.
- Some business owners think that EDI integration may negatively influence an everyday workflow in the company. The time for EDI implementation may be very short – it depends on your goals, your budget and the solution you choose. Even the first steps of EDI integration will show that working process becomes faster and more productive. Large amount of mistakes and failures are reduced (including manual ones). Now operations take less time and effort – transactions processing now can be started and ended during one working day instead of a week. Freed man-hours are directed to critical business tasks. You have more free time to think over business optimization and finding new markets.
- There is a myth that EDI integration brings too many bugs with it. New EDI software passes a range of tests and approvals before it goes in operation. All processes are carefully tested, not only within the company, but also with trading partners. Each new business communication will pass a critical stage – rules compliance, testing documents, finding failures and excluding them. Usually, before going to production, all operations are checked and approved.
- EDI is going to disappear. Sometimes people are arguing that EDI technology will be soon replaced by new ones. However, today EDI growth in the USA and in other parts of the world show that EDI approach is constantly developing. EDI was in business for decades and has already showed its potential. Today EDI technologies are constantly developing, and companies who are now strongly connected to electronic data interchange invest in its further development.
Of course, new formats appear and it may seem they are going to replace EDI. But as it was said above, EDI is now too solid to disappear because of a new solution. Too much time was spent for its global integration, so it will definitely stay with us for decades more. If you want to learn much more, join EDI Academy seminars and online webinars.