Web Based EDI
Many people will often confuse Web based EDI with Internet based EDI. While the two terms may sound very similar, the solutions they are in fact very different. Web based EDI is generally used to describe EDI systems that can be accessed and used via a Web browser. These systems are based on what is known as the "Software as a Service" principle where the user will pay a monthly fee in exchange for access to the Web based EDI system. Web based EDI began to increase in popularity early after the turn of the century as more and more smaller businesses wanted access to an easy to use, easy to adopt EDI system that was affordable. For businesses just getting started with EDI the Web based EDI approach is one that is often a great starting point. There are pitfalls, however, and as most businesses learn, once the volume of transactions increase the cost of a Web based EDI system can skyrocket.
Advantages of EMANIO vs. Web Based EDI
* Affordable price point, often less than the first year of Web Based EDI cost
* No per transaction charges, lets you scale without excess fees
* Automated system lets you completely make EDI self-sufficient
* Full integration capabilities to any back-end system
* In-house system means your data stays behind your firewall
The Promise of Web Based EDI
Web based EDI is often the cheapest and easiest way for businesses to begin transacting with their trading partners using EDI. Many of these systems have established relationships with large retailers like Wal Mart, Target etc., so they hide all the complexities of traditional EDI setup and configuration from the user. Additionally, with most packages available for as little as $50 per month, Web based EDI can be quite affordable - at least at first blush. there are of course some limitations. With a Web based EDI system you will be limited to trading with trading partners that the system supports; if you have a specific request for a trading partner that they do not support you may not be able to use EDI for that partner. Additionally, if you are looking to integrate your EDI data with your ERP or accounting system, most Web based EDI systems provide a very limited range of options. An additional limitation of Web based EDI is that often they do not support a full range of X12 transaction sets, limiting the kind of EDI you can support. Even with some of these limitations in mind, however, the low cost, ease of use and ease of implementation is very attractive to low-volume users of EDI.
Pitfalls of Web Based EDI While Web based EDI holds a lot of promise there are some severe drawbacks. The first one is one of security. While all Web based EDI systems use encryption to allow you to access the systems securely, it is important to remember that the EDI data ultimately resides on their servers, outside your firewalls; and anyone who has witnessed some of the security breaches of the past five years knows that even banks often have a hard time keeping data secure. Beyond the security aspect however there is also a cost consideration. Since most Web based EDI systems charge based on a variable rate that is based on the number of kilocharacters you send, Web based EDI can become quite expensive quite quickly. It's very common for some users of Web based EDI systems to work their way up to as much as $1,000 to $2,000 in fees per year.
The Problem with Scheduling & Error Management Web Based EDI
Among some of the concerns that many customers raise when discussing web based EDI there are two that are frequently brought up. The first is a concern focused on scheduling. Specifically, with Web based EDI services when the data is sent and or received to your trading partners is not up to you. The reason is that web based EDI services will batch all the data received from all the subscribers and send and receive at set intervals to reduce their own operating costs. While this results in more affordable rates it means that a web based EDI service will force you to live by a schedule that is out of your control. An equally vexing problem is that of lack of response to problems. Many customers of web based EDI services often complain that when there are errors in data sent or received, the troubleshooting of those problems can take a very long time and cause significant delays. The reason for this is simple, with a web based EDI service you do not control your data, so you must rely on what is typically a small, understaffed organization to try and identify your problems.
As businesses begin the path towards EDI adoption it may be easy to assume that the low entry price of web based EDI services is the best option; and for many companies it will be. Web based EDI, however, can have significant problems related to cost, service and control that will ultimately make it too expensive for most businesses. |
