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A must-have guide for a successful systems integration with EDI

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Introduction

The concept of Electronic Data Interchange (EDI) is still very abstract for a business owner up until today. More often, as soon as an SME (small to medium-size enterprise) is requested by an important partner to comply with electronic data interchange process or do EDI, everyone gets on a big pig panic inside the enterprise, and all reinforcements are being called to help with such project.

Why Integration projects are nightmare?

EDI IntegrationIn fact, large chains are extremely important customers for many small and medium size enterprises. It is therefore essential, even vital, for many of them to follow the requirements imposed by those major retailers. Actually, all the large chains use mainly EDI format to exchange business transactions with their partners.

However, it can be risky for a company to embark on EDI integration without carefully evaluating business processes and needs.

 

Recommendations and steps for a successful integration

More than any other IT solution, EDI technology can profoundly modify several business processes of the company. EDI integration projects, must be planned and executed, according to a coherent process. Here are the different steps:

Step-1 Preparing of an EDI implementation team

It is essential that senior management be involved in any EDI integration project and implementation, at least at a high level.

Ideally, the EDI implementation team should include representatives from different departments, such as operations management, sales and information services.

It is important for the team to design together a good flow of information, so everyone understands the issues, the scope, and the benefits of the project. A project manager, should be assigned to take charge of such a mandate.

Step-2 Setting a project timeline

The implementation team should set and ETA and develop a plan with a complete list of tasks, resources required, and delivery estimates.

Step-3 Choice of standards

While the choice of standard of EDI format and communication protocols is very limited, this phase consists on just reviewing and making sure all specs and documentations are in place for the kick-off.

Step-4 Choice of documents for EDI transaction

Often, trading partners specify the EDI standard and the type of documents they will send or accept. Sometimes partners use only a few of the possible documents such an Invoice EDI 810 form and purchase orders EDI 850 form.

Step-5 “On premises” or “cloud” based or EDI Web Sevice?

There are many ways to do EDI. It is depending of the anticipated transaction volume, or the size of the business. Going with a software solution deployed “on-premises” or adopting a “cloud based software” or maybe EDI Web Service

♦ The Cloud-based EDI Service is an excellent solution for Small and Medium-sized enterprises that do not have a budget for large EDI projects, and who do not have experienced staff with EDI exchange.

Learn more about EDI Solution as a Service for SMEs 

♦ The other way to get the most out of EDI, is by adopting a full EDI integration with your internal software management system like your ERP, CRM etc.

♦ EDI2XML Web Service, is for developers and businesses, interested in building their own EDI (Electronic Data Interchange) integration flows and programs. Normally, these individuals, are capable of interacting with external API and Web Services to translate EDI to XML and XML to EDI, and have the resources and expertise to work with Web Services and HTTP requests in order to achieve their goals. EDI2XML web service, is the premier choice for IT people as a reliable service to accomplish such integration projects.

Step-6 File Integration or direct system integration

When it comes to integration, the implementation should be decisive on how the integration to their CRM/ERP is going to happen: there are (2) methods to do such an integration; either through file integration, Where the ERP has already some built-in jobs to import data based on specific format, or direct integration. Obviously, this decision is also dependent on whether the software management system is a legacy system or a modern one, fully loaded with all kinds of API and programming interfaces. This part can be the most difficult and lengthy part, unlike what most people think…

Step-7 Integration project testing

Pilot projects are conducted both within the company and with external business partners. EDI test should be of a specified duration. They will help identify possible loopholes and establish a problem-solving plan. Technical employees should be trained in the technical aspects of EDI.

Step-8 Setting up

The implementation of the EDI system must be combined with several factors in order to be successful: adequate users training, proper implementation plan, and establishment of an emergency procedure.

For a small to medium-size enterprises, EDI integration is a good deal. An Electronic Data Interchange (EDI) capable enterprise retains an important customer or supplier and have a lot of opportunities to enter into new contracts with large companies.

For many years our EDI2XML service has been offering up-to-date integrated solutions at an affordable cost. We have been helping companies of all sizes, to optimize operations and improve their competitiveness.

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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!
Free EDI consultation
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Why EDI is becoming the #1 method for B2B Transactions

B2B communication and EDI

For a while, EDI was not well liked amongst Small & Medium Enterprises. These companies were finding it to be too slow, too complex and way too expensive. They then resorted to a lot of manual data entry for orders as they would receive orders and invoices via email or fax. However, over the years, things have changed…a lot and for the better. 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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Related Posts:
– Must-Have Integration between E-Commerce and Business Systems
– Fully managed EDI service VS HTTP Web Service: Which is Better for Your Business ?
– API Web Service for EDI X12 exchange – Discover the advantages