EDI System

An EDI system is most often a solution to a business’ EDI needs. This can be to fulfill customers’ EDI mandates or manage a rapidly growing supply chain.

EDI systems often include EDI integration into backend ERP, accounting, warehousing or supply chain management systems. In addition, an EDI system will include communication, translation and mapping functionalities. Most EDI system vendors actually have its main business in providing consulting services rather than selling EDI system of pre-configured software. The difficulty for someone in the market for EDI systems is to know whether the product being acquired is mostly software or mostly services, since most vendors seem to claim the same benefits.

When the decision is made to buy an EDI system, the decision of which vendor to purchase from becomes important. Regardless of the type of solution, a number of issues should be contemplated in choosing an EDI system. These factors include:

• Standards supported
• Ease of use and customization
• Software maintenance
• Special features
• Technical support
• Vendor experience
• Platforms supported

The EDI system you purchase should support all standards in use within your company and within the trading partner’s company. At a minimum, the EDI system should support ANSI X12 and the industry subsets of X12, and the same for UN/EDIFACT. The EDI system must be able to support multiple versions of the EDI standards since trading partners frequently use different versions.

Since trading partner EDI mapping – identifying the optional segments and elements to be used in transaction sets – is done with each trading partner, the EDI system should be easy to customize for each trading partner. In fact, in addition to having an easily customizable EDI system, EMANIO provides EDI kits that makes it truly simple to begin transacting with many hundreds of major trading partners.

Since EDI standards will change, the EDI system will need to readjust. In choosing an EDI system, consider the cost and timeliness of standards upgrades. Most EDI system vendors update packages as the standards are updated, but how those changes are provided to customers vary from vendor to vendor. Ensure that the EDI system is easily modified.

Depending on the particular EDI application, special features such as encryption techniques, control reporting and audit reports may be important in the EDI system.

One of the most important considerations in purchasing an EDI system is the post-sale support. Services should include: a vendor hotline staffed with competent technical people who can provide rapid answers to issues or problems, and account representatives who are able to help with installing of the EDI system as well as addressing any issues after it is installed. Always request references!

Another factor to consider with an EDI system is the financial stability and experience of the vendor. Does the vendor have experience in your industry, with your application? What is their financial stability? There are many small vendors of EDI systems, few of which can be considered either financially stable or experienced. You need to ensure that the EDI systems vendor will be there to support you over the long haul.

In general, an EDI system is acquired for a specific hardware platform, most usually PC based, although some companies need multi-platform EDI systems.

What type of EDI System is best for your small business?  The answer to that question will ultimately depend on how well the EDI System meets the unique requirements of your business.  How many different trading partners does your EDI System need to support? How much growth does your EDI System need to allow for?  Are you going to run the EDI System in house or are you thinking of hiring an outside company to host the EDI System for you?  These and other questions will guide you to the EDI System that will be best for your business, now and in the future.

Regardless of which EDI System you select, it is important to be prepared for implementing and deploying an EDI System.  Unlike many other types of other business software, an EDI System has a single goal – the translation of EDI data.  Because of this, small business owners often do not think of their EDI System as a critical component of their IT system. An EDI System must be thought of as a critical component of the business because of the many advantages that an EDI System can bring to any small business.  A properly implemented EDI System can significantly reduce costs, improve the accuracy of data, and provide you with a competitive advantage.  Selecting the right EDI System will let you focus more of your time on running your business, and less on managing your EDI System.