Should EDI Be Outsourced

Electronic Data Interchange or EDI has become increasingly popular since the early 90s. Often driven by large organizations, such as retail chains, large warehousing, and distribution provider, etc., with high transaction volume to reduce costs. Costs incurred through manual data entry work, print documents such as orders confirmation, shipping documents, etc.

The problem now is that you only have a small number of customers who do EDI, but usually, each one of them has developed a standard ERP solution that fits them and they force you now to comply with this standard even if it does not fit your system.

Your organization needs a modern EDI translator to develop a map that translates into your customer's standard file format that your system can understand and vice versa. Documents emanating from your system will have to be translated/mapped to the file/transaction that can be read by your customer's ERP Solutions.

Unfortunately, EDI has one major drawback. As mentioned, the first EDI usually implemented in a larger organization and then driven to their vendors. Organizations are more likely to develop their own standards in the existing ANSI X12 (mainly deployed US / Canada) or EDIFACT (mainly deployed in Europe and Asia).

This standard is then forwarded to their trading partners. This trading partner or vendor could be a larger organization that has the resources to maintain their own EDI department, but they can also smaller organizations that do not have the resources available to have their own EDI department or person.