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PROs & CONs of Common EDI Translation Methods for SMEs

This post was updated to reflect current trends and information.

An article on our parent site, Namtek Consulting Services, called “Finding the Middle Ground with EDI Software & Services, ” explains the three most common options Small and Medium Enterprises look into when beginning to use EDI to exchange documents with their Trading Partners.

These 3 options consist of:
  1. Building an EDI translation tool from scratch and doing all communication in-house
  2. Going with a large, reputable EDI Vendor to outsource your EDI
  3. Buy an EDI translation tool, targeted solely to developers

Here are the PROs and CONs for each:

1.    Homegrown EDI Software

With this option, your company must have an in-house IT team, with the necessary EDI knowledge and experience to handle EDI capabilities and requirements.

PRO: The IT team is capable of developing their own EDI translation software to integrate within their ERP system for optimal performance. The whole process will be customized to their exact needs.

CON: This process usually ends up being very expensive and time-consuming for everyone involved. On top of it, many SMEs cannot afford to have their own in-house IT department and EDI experts.

2.    Prominent EDI Vendor

PRO: Large vendors help you connect to the retail industry’s largest network of Trading Partners.

CON: These Vendors are not cheap! Get ready to pay high monthly fees and to wait months at a time to hear back from their Support team.

3.    EDI Translators for Developers

PRO: These tools are affordable to buy, consisting only of a low one-time fee.

CON: Because these translation tools are used and maintained by developers, it requires knowledgeable resources in-house and ongoing support within the company to preserve all EDI capabilities. Your in-house team will need to handle all EDI mapping and requirements for each Trading Partner connection. Therefore, the cost to buy the translation tool may be within budget, but it will cost your company time, effort and in-house IT wages to complete the whole EDI project.

The best option? An EDI Fully Managed Service that is: Affordable, handles ALL EDI mapping, and has a great support team. Take a look at EDI2XML!
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EDI Communication Over The Years

This article went on to describe the beginnings of EDI in the business world and how far we’ve advanced with technology to simplify these B2B transactions with EDI2XML.  Read more

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The Flexibility & Affordability of EDI Managed Service

This post was updated to reflect current trends and information.

EDI communication, although it may still have a bad rep for being too complex and expensive, is growing in popularity amongst businesses. It still remains to be the best and most secure method of exchanging electronic information between Trading Partners. Does it have to be so complex and expensive? Not at all! It’s whom you choose to hire as your EDI Provider that makes all the difference. Most large Providers are not flexible enough to deal with Small and Medium Enterprises. This was a problem in which our EDI experts realized over 20 years ago and eventually found a solution.

Read: What is EDI (Electronic Data Interchange)?

The Solution – Fully Managed EDI Service

EDI2XML is a translation tool that converts EDI documents to XML/CSV format (based on a pre-defined schema) for incoming documents (and vice versa for outgoing documents). XML is a format that is easily readable by any business person, no matter their IT or EDI knowledge. It is also easier to integrate this XML document into the company’s management system – automating and simplifying the whole communication process. On top of all this, we understand that not all businesses have an internal IT team, which makes implementing new software solutions difficult and complicated for the business executives. We then needed another solution to another problem. We came up with EDI2XML Managed Services.

Basically, this SaaS cloud offering enabled companies to exchange via EDI with their Trading Partners without lifting a finger. How great is that? Our team picks up any incoming EDI documents straight from the customer’s Trading Partner’s mailbox, converts it into the desired XML format of the customer, and sends it to the customer or integrates the data straight into their management system. Outgoing documents works in the opposite way; we pick up any outgoing XML files extracted from the management system, we convert it into EDI format to then send it straight to the Trading Partner.

Key Benefits of Managed EDI Solution

  • Improves customer/partner relationships
  • Doing business with the large retailers, who require their partners to use EDI, is finally made possible
  • Staff can focus on their core business tasks rather than on manual data entry for incoming orders
  • The B2B flow of information is enhanced and simplified
  • Exchanging via EDI is affordable for the smaller companies
  • Improves order processing cycle time reductions; invoices and POs can be processed within hours rather than days/weeks
  • Documents are more accurate (reduced errors) as there is no manual data entry required
  • Cash flow is also improved since electronic invoicing via EDI increases the speed of payment by the customers
  • Employees can quickly access order statutes or other important information to make strategic decisions

All in all, EDI2XML has indeed eliminated many supply chain inefficiencies that companies are living with today and has provided accuracy and timeliness for order processing. Our team is also very flexible and understands that EDI communication can differ between companies, retailers, etc. After being in the EDI communication business for over 20 years, we’ve seen a lot! Selling a solution is not the way to go – it’s about solving a problem by improving processes. Let us handle your EDI communication process.

Contact us for a free EDI Consultation so we can better understand your EDI requirements, specific to your business

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– Fully managed EDI service VS HTTP Web Service: Which is Better for Your Business ?
– API Web Service for EDI X12 exchange – Discover the advantages