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4 Jun 2021

4 Things to Know Before Getting Started with EDI Software

Post by Jordan Toplen

The installation phase can be one of the most difficult aspects of implementing Electronic Data Interchange software. To process Electronic Data Interchange at full performance, many solutions necessitate dedicated but costly hardware. It’s important to remember that EDI solutions are flexible, which means that as your company expands, the EDI can easily be configured to meet the demands of increased sales and development. Computer-to-computer solutions are used in edi software to enable information management models to share data directly with one another, eliminating many of the tasks that were previously needed in the manual phase while also streamlining it and improving security.

The Way It Works

EDI relies on using EDI transaction files to function. The relevant information will be stored in a specific format in EDI transaction files. There are several different types of EDI transaction files all having their own features, such as an EDI 856 transaction file, that identify shipping info to a partner. It can be used for a variety of things, such as ‘the who’, like carrier information; ‘the what’, such as how many items are being shipped; ‘the when’, e.g., when the item will ship or has shipped; and ‘the how’, like the type of transportation that will be used.

Get on Board

An EDI provider, often referred to as a Value Added Network (VAN), can help you effectively use EDI services. Your transactions will become EDI compliant thanks to the VAN. If the software that controls your inventory has been incorporated, the VAN provider can act as a middleman between you and your trading partners to process orders directly through your management software.

You Need to Identify Trading Partners

To get started, you’ll need to figure out the form of EDI system that is best for your company and its EDI trading partners. Begin by examining the organizations with which you collaborate the most. Is there an EDI system in place? If so, what kind? Check that your potential new EDI system works with the EDI trading partners you want to work with the most.

Transaction Volumes

The number of transactions will decide how heavy your use will be, as well as which solution you want, whether it’s a web EDI solution or EDI that’s built into the order management system. Technical experts will be able to educate you about the right approach for your company’s needs, but questions that need to be asked are: How many transactions can be handled by EDI? Will you start with a small number of customers or suppliers or with your entire trading network? Do you expect your trading network to expand as a result of EDI adoption? How much will you be exchanging documents each day?

Have you considered how you’d handle the day-to-day management of EDI? Are you trying to recruit someone to help you with these duties? You don’t have to opt for an outsourced approach. The pressures and responsibilities that come with day-to-day EDI management are eliminated with an outsourced managed service solution. Choose a first-class service that is led by a team of technical professionals who are constantly tracking message transmission and handling and proactively addressing any problems, so you don’t have to.

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