Streamlining EDI and NetSuite Integration: A Comprehensive Case Study on Supplies Outlet

Last Updated on March 6, 2025 by Tatyana Vandich

Introduction to EDI Integration and NetSuite ERP

For companies that handle large volumes of transactions, Electronic Data Interchange (EDI) is an indispensable solution. EDI automates order processing, inventory management, and financial transactions. When EDI is integrated with a reliable Enterprise Resource Planning (ERP) system like NetSuite, it can significantly boost business efficiency, reduce manual tasks, and minimize errors.

In this case study, we’re sharing how Supplies Outlet — a printer cartridge retailer out of Nevada—managed to streamline their processes with a fully managed EDI integration service.

We’ll also dive into the roles of NetSuite, EDI, and a few different integration methods, giving you some ideas on how you might improve your own operations.

About Supplies Outlet: Enhancing Operational Efficiency

Supplies Outlet has been around for 18 years, selling both compatible and remanufactured printer cartridges. They’re known for good prices, quality products, and solid customer service. As their customer base and trading partners grew, the old-school manual processes started to hold them back. They needed something that could scale and automate order processing and real-time inventory management—so they turned to advanced EDI integration.

What is NetSuite ERP and Why It Matters?

NetSuite is a cloud-based ERP system that companies use to manage finances, inventory, orders, and customer relationships. It is an all-in-one business platform that helps centralize data, automate many important workflows, and track information in real time.

When integrating EDI with NetSuite, electronic document (or EDI transaction set) from suppliers and distributors is fed directly into the system, ensuring fast and accurate processing of electronic transactions. This is super important for any business trying to stay competitive these days.

The Critical Need for EDI Integration in Modern Business

Electronic Data Interchange (EDI) is a highly standardized method for exchanging business documents in electronic format between trading and business partners.

Instead of manually inputting purchase orders, invoices, and shipping notices, EDI automates the whole process, which cuts down on errors and speeds things up.

For Supplies Outlet, the lack of EDI automation led to several operational challenges:

• Complex EDI Exchanges: Managing connections with multiple trading partners and processing diverse EDI document types.
• Manual Data Entry: High risk of errors and inefficiencies due to manual input of orders, invoices, and inventory updates.
• Limited Automation: Slow order fulfillment and difficulty tracking real-time inventory.
• Data Silos: Fragmented information across various systems impeded swift decision-making.

To overcome these hurdles, Supplies Outlet partnered with EDI2XML for a fully managed EDI integration service that streamlined communication between the company and its business partners.

Exploring EDI Integration Methods: Options for Every Business from EDI2XML

When businesses implement EDI, they have several integration options:

1. On-Premise EDI Software: Installing EDI software on company servers, and managed internally. This method requires significant IT resources for maintenance and updates.

2. Cloud-Based Fully Managed EDI Service: A third-party provider handles all aspects of EDI integration, from setup to ongoing support, allowing businesses to focus on core operations.

1. HTTP EDI Web Service (REST API): EDI2XML Web Service is a powerful HTTP service that enables seamless conversion between EDI and XML messages. It detects the message format – EDI or XML – and converts it to the required format, making integration and data exchange smoother and faster for your business.

Supplies Outlet chose a Fully Managed EDI Service to eliminate the burden of managing EDI internally while ensuring seamless data exchange between NetSuite and its trading partners.

How the Fully Managed EDI Service Transformed Supplies Outlet’s Operations

By implementing a cloud-based integration platform from EDI2XML, Supplies Outlet automated its EDI workflows. Key aspects of the solution include:

Processing Incoming EDI Documents

• The EDI2XML processor is set up to check specific mailboxes every 15 minutes for incoming EDI documents. It routinely handles EDI transaction like EDI 846 for inventory inquiries, EDI 855 for order acknowledgments, EDI 856 for shipping notices, and EDI 810 for invoices. This regular checking ensures that even during busy periods, no new documents gets noticed promptly.
• Functional acknowledgments EDI 997 are automatically sent back to trading partners as soon as each document is received. This means that partners got immediate confirmation that their data had reached the system, which helps maintain smooth and reliable communication.
• Once the document is in, is’s transformed using the REST API into formats that NetSuite ERP can understand. This transformation happens automatically, so there’s no manual fuss, and the data gets pushed directly into the system for processing.
• On top of that, automated email notifications keep the Supplies Outlet team in the loop by providing details about the received documents, like the type and the time they were processed. This extra step makes it easier for the team to monitor and manage incoming data without constantly checking the system manually.

Managing Outgoing EDI Documents

• Every 15 minutes, the processor checks NetSuite for any new orders. This frequent check helps ensure that no order is missed, keeping the process almost real-time.
• After identifying new orders, the processor pulled all the relevant data from NetSuite using the REST API. This data is then converted into the x12 EDI 850 format, tailored to match each trading partner’s specific requirements. This customization is critical for ensuring that the data is compatible and easy for partners to process.
• Finally, the completed documents are securely sent off to the trading partners’ mailboxes via FTP. This secure transfer process uses encryption to protect the data during transmission, so it’s both reliable and compliant with industry standards.

Key Benefits of Enhanced EDI Integration

The implementation of the EDI integration significantly reduced manual data entry for Supplies Outlet. According to Jerry Farrell Chief Operations Officer, “We eliminated all of our manual entry.” While some exceptions remain, such as handling orders from terms customers who do not pay at the time of checkout, the vast majority of orders—approximately 90%—are processed seamlessly without any manual intervention. Even for scenarios requiring additional action, such as backorders identified through EDI 856 messages from primary vendors, the efficiency of the system has drastically minimized manual workload and streamlined operations.

The integration has significantly reduced processing times and improved order accuracy for Supplies Outlet. According to Jerry Farrell “The platform has been built to eliminate human error by automating data entry. All metrics and product details are already included, which prevents mistakes caused by manual input. If there’s any error, like selecting the wrong product or quantity, it’s typically due to user choices during order placement, not the system.”

Jerry also highlighted the economic benefits of automation, stating: “The reduction in manual work has decreased the workforce needed for these processes. While it’s always a balancing act between job creation and operational efficiency, leveraging automation is an economical decision every business must consider. The speed at which we now process orders, verify them with vendors, and receive tracking information is a huge cost-saver. We no longer have to deal with emails or copy-pasting tracking numbers manually.”

Jerry also shared additional insights about the integration’s impact on their operations: “The platform has significantly reduced processing time. If there’s ever a backorder situation, it’s a vendor-based issue outside the EDI system’s scope. Manual intervention is required in about 10% of such cases, but the automation handles the rest efficiently.”

Thus, fully managed EDI integration has led to significant operational improvements:

• 90% Reduction in Manual Data Entry: Automation minimizes human error and expedites transaction processing.
• Enhanced Data Accuracy: Real-time validation reduces discrepancies in order processing.
• Seamless NetSuite Integration: Immediate synchronization of order data, inventory, and financial records.
• Scalability for Future Growth: The solution easily accommodates additional trading partners and increased transaction volumes.
• Improved Trading Partner Relations: Faster and more accurate data exchange strengthens collaboration and reliability.

Why Supplies Outlet Chose EDI2XML for Their Integration Needs

Supplies Outlet’s decision to partner with EDI2XML was influenced by several key factors:

• Comprehensive Managed Service: Eliminates the need for in-house IT management of EDI processes.
• Cloud-Based Security and Reliability: Ensures compliance, data security, and operational continuity.
• Custom-Tailored Solutions: Addresses the specific business needs of Supplies Outlet.
• Proven Expertise: A solid track record in successful EDI and eCommerce integrations, providing confidence in the solution’s efficacy.

The collaboration between Supplies Outlet and EDI2XML extends beyond EDI. Jerry Farrell added:

“Working with Pierre and your team has been extremely helpful, from data migration between platforms to broader technical support. We’ve experienced near 99.9% uptime with minimal disruptions, and the team’s responsiveness has been outstanding over the past two years. It’s been a pleasure to work with EDI2XML and Pierre, who originally supported our sister company, Digital Dolphin Products, before we adopted EDI for Supplies Outlet.”

Frequently Asked Questions (FAQs) About EDI and NetSuite Integration

What is Electronic Data Interchange (EDI)?

EDI is a standardized method for exchanging business documents electronically, automating processes such as orders, invoices, and shipping notices to reduce manual entry and errors.

How does NetSuite ERP enhance business operations?

NetSuite is a cloud-based ERP that centralizes data management, automates workflows, and provides real-time insights, leading to improved financial, inventory, and customer relationship management.

What are the benefits of a fully managed EDI integration service?

A fully managed EDI integration service means you don’t have to worry about any of the technical details. From the get-go, our team handles all the communication with your trading partners, takes care of the system setup tailored to your business needs, and continually monitors every transaction to ensure everything runs smoothly. This end-to-end approach minimizes risks and errors, letting you focus on your core operations while we ensure a secure, efficient, and compliant EDI process throughout.

Which industries can benefit from EDI and NetSuite integration?

Any industry with high transaction volumes—such as retail, manufacturing, logistics, and distribution—can benefit from integrating EDI with NetSuite to enhance operational efficiency and reduce errors.

What kind of support do I get during and after the integration?

With a fully managed service, you get hands-on support right from the start and ongoing help afterward. It’s not just about fixing issues—it’s more like a partnership where the provider helps you optimize the system as your business evolves.

Conclusion: Driving Business Growth with EDI and NetSuite Integration

By adopting a fully managed EDI integration service, Supplies Outlet has really cut down on manual processing and improved order accuracy. The smooth integration with NetSuite now gives us real-time visibility into operations, which has boosted collaboration with trading partners. For any business trying to streamline their EDI processes, a fully managed service is a pretty powerful solution to help boost efficiency, accuracy, and scalability.

If your company is considering EDI integration, contact EDI2XML to explore how a tailored solution can enhance efficiency and scalability for your business.

Tatyana Vandich

Tatyana Vandich is a seasoned marketing professional with a focus on technology and business solutions. She regularly contributes to the EDI2XML blog, sharing insights on EDI, data integration, and digital transformation to help businesses improve operational efficiency.

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