10 Key Features to Consider When Choosing an EDI Solution

It is important to evaluate your organization's needs, including current processes, transaction volumes, and trading partner requirements. These characteristics will ensure that your EDI solution aligns with your business objectives and operational demands. 

In order to assess current processes, it is necessary to map out the existing business operations: what areas need streamlined processes, what areas would benefit from  reduced manual work, how can EDI integrate with current systems (ERP, CRM, inventory management systems…) and in which part of the processes can we reduce errors? Those are the questions we need to lay out in order to understand what type of EDI will best suit business needs and improve processes. 

Evaluate the volume of transactions your business handles daily, weekly, and monthly. This includes orders, invoices, shipping notices, and every supply chain document exchanged with trading partners. They vary widely depending on the type of business: in Vendor Managed Inventory (VMI) or 3rd-Party Logistics (3PL) supply chains, for instance, the volumes are typically very high. Understanding the volume of documents your company handles is essential to choosing the right business process and scaling effectively. 

Like your company, trading partners can have their own preferences for EDI standards or protocols. Selecting the right EDI solution that supports your partner’s standards is important to facilitate seamless communication with everyone.  

There are typically 2 types of EDI services tailored to different business needs. These are the EDI solutions that help to improve supply chain messaging and enhance business operations between trading partners: 

• Web EDI - This is an entry-level solution ideal for companies introducing EDI to their processes with a low volume of transactions. With this solution, you can exchange business documents through a web interface. It is straightforward and does not require technical expertise. 

• Integrated EDI - This solution, suitable for businesses with a high volume of transactions, allows you to connect directly with your ERP and other business systems, automating data exchange, reducing manual entry, and improving data accuracy in your workflow. 

Once you have decided which type of EDI solution best suits your business, the next step is to examine the features of your EDI provider and how those attributes will benefit your organization and your communications with your trading partners. 

When evaluating an EDI provider's expertise, consider how long they have been active in the EDI field and whether they have experience working with companies of a similar size to yours. It's important to check if they have references in your industry and understand its specific requirements. Additionally, assess the expertise level of their project team to ensure they can effectively support your EDI implementation and ongoing needs. 

Choose an EDI provider with an extensive network.  An extensive network means the provider has established connections with a wide range of businesses, which can significantly simplify the process of connecting with your current and future trading partners.  

Choose a provider that offers a secure SaaS (Software as a Service) solution, ensuring the solution's security and compliance with necessary protocols. Additionally, consider features like message translation capabilities and other important characteristics that may not be essential now but could become valuable in the future. 

When choosing an EDI solution, it's crucial to ensure it is scalable, allowing you to easily onboard additional trading partners as needed. It can also be advantageous to select an EDI provider that offers a variety of supply chain solutions, such as warehouse management, transport management, and ecommerce solutions. Opting for a provider with a comprehensive range of solutions can save you the hassle of dealing with multiple vendors for additional integrations. 

Pricing flexibility is crucial. As the market evolves, so does your business, which may see fluctuations in monthly transaction volumes, trading partner onboarding, updates, and upgrades. All these factors can have an impact on costs. Therefore, it's essential to choose an EDI provider that can adjust pricing to align with your business needs. 

As previously mentioned, security is a top priority. When selecting your provider, ensure they have up-to-date certifications that meet industry standards for data protection. This verification is crucial to safeguarding your sensitive business information. 

Check if your EDI provider has a track record for integrating with ERPs or other relevant business systems. Your ERP system will be subject to changes in the future, so it’s crucial that your EDI provider can handle a switch in your system without disrupting your business. 

It is crucial to choose an EDI partner that meets your service level and customer support needs. Ideally, select a provider that offers in-house or global customer support. Ensure you understand their contact methods, confirm they provide proactive monitoring and optimal service management, and verify they have clear escalation procedures in place. 

Sustainability is a top priority for supply chain and logistics companies. EDI supports environmentally-friendly practices in several ways, including automating order-to-cash and procure-to-pay processes, eliminating paper usage, and improving order accuracy to reduce errors and returns. These elements lead to fewer transport movements and lower fuel consumption, ultimately contributing to a healthier planet. 

While selecting a local EDI provider may seem simpler and more convenient, it could lead to potential disruptions in your business down the line. Opting for a provider with global coverage offers numerous advantages providing access to an extensive network of trading partners, facilitating international expansion, and ensuring familiarity with global compliance rules and regulations. 

Choosing the right EDI solution is important for your business operations and growth. Key factors to consider include expertise, network size, and solution features. An experienced provider with a large network simplifies connections, ensures data protection, and offers scalable, flexible solutions.  

Descartes has been a leading provider of EDI solutions for over 40 years, serving thousands of clients worldwide. Our EDI solutions enable seamless global connections, allowing you to translate, transform, and transmit business-critical data and documents effortlessly. 

By choosing a Descartes EDI solution, you become part of The Descartes Global Logistics Network™, an ecosystem of software solutions for the supply chain market. It connects thousands of logistics, transportation, manufacturing, distribution, retail, government, and ecommerce players in over 160 countries.