When businesses first start using Electronic Data Interchange (EDI), they usually do not buy EDI software. It is usually cheaper for businesses that are just starting out with EDI to use a Value Added Network (VAN) or an EDI services company. Businesses usually start looking at EDI software as they start adding more trading partners and their EDI transaction volume starts going up. At some point it starts to be more cost-effective to buy EDI software rather than continue to pay high transactions fees to VANs and EDI service providers.
What is EDI Software? EDI software is used to import and export electronic business documents in an industry-standard data format from one business’ computer system to another business’ system using data communications. EDI software is used by a business’ internal IT staff. More and more EDI software is being offered as a Software-as-a-Service (SaaS).
What are the Benefits of Using EDI Software Versus Using a EDI Service Provider?
For medium and large businesses, there are many benefits to buying EDI software. Benefits include:
- Fixed Cost Versus Transactional Costs. EDI software offers a way to reduce and stabilize EDI costs if your Business-To-Business (B2B) transaction volume is growing and you are continually adding trading partners.
- Strengthen Ties With Customers and Suppliers. If you use EDI software versus using a third-party provider, you will develop a closer relationship with your business customers and your suppliers. For many large businesses, more business transactions flow through EDI interfaces than through web sites, e-mail, telephone, face-to-face, or regular mail.
- Gain A Strategic Capability. As more business transactions convert from paper to electronic, B2B integration and EDI is becoming a core business function for many businesses.
See postings: B2B eCommerce Resources | B2B eComerce & EDI Trends for more information.
Tags: B2B, EDI, Integration, VAN