EDI providers are businesses that enable other businesses to send and receive EDI documents. They handle most of the EDI processes including mapping, integrations, testing, document exchanges, error handling, partner onboarding, and more.
Moreover, with the increase in competition and businesses requiring more and more from EDI providers, modern providers also provide a whole suite of accommodations for businesses like cloud platforms, AI and automation, enhanced visibility, and real-time monitoring dashboards, etc.
So, with EDI providers basically handling all the EDI processes of a business, choosing the right one becomes extremely important.
This article aims to explore the features businesses should look for in an EDI provider before deciding to choose one.
EDI providers provide much, if not all of the EDI services that businesses have to implement. Many business owners do not have the capability or technical expertise in their midst to know the complex procedures of EDI operations. So, most of the time, they have to rely on EDI providers to provide them with appropriate solutions for their EDI needs.
In such a scenario, if an EDI provider comes out to be unprepared, ineffective, unreliable, insecure, and unsupportive, the business will naturally have a massive impact. One has to note that most businesses do not want the hassle of implementing EDI. They implement EDI because the business operations require it, and in the long-term it becomes extremely beneficial. But all this hinges on a point that showcases how effective their EDI implementation and operation is.
And to implement and operate a smooth EDI-capable infrastructure that is helpful for the businesses, choosing the right provider is the most critical aspect. With this in mind, here are 13 key features businesses should look for in an EDI provider.
There are probably an impressive number of factors to consider whenever a business chooses an EDI provider, as they are handing their EDI lifeline to the provider.
So, investigating and vetting each small feature, compatibility, technical requirements, and need-specific solutions can be extremely challenging for most businesses. They may not have the time or the capacity to look for each and every detail of an EDI provider and compare them with 20 others out in the market.
In regards to this, we have compiled 13 key features that sum up approximately all of the features a good EDI provider must have. So, if you are a business looking for a new EDI provider, consider them thoroughly.
Your EDI provider should integrate with your internal ERP, accounting software, and related business systems. Look for pre-built connectors and API support. Connectors like NetSuite, and QuickBooks help connect your ERPs and Accounting Software with EDI to instantly start business operations.
As your business grows, this needs to be reflected in your EDI capabilities. Meaning more transactions, processing, more error handling, and the need for more robust mechanisms. Suppose your EDI provider cannot scale up as your business scales up and cannot handle the more complex mapping and integrations that come with improved business operations. In that case, it will surely have a negative impact. So, choose the EDI provider based on past performance of scalability, and ask the question “Can the provider scale up or down depending on my business needs?”
Security matters most in EDI transactions. Due to the sensitive nature of business transactions involving thousands to millions of dollars, it is critical to ensure that proper security measures are taken. Moreover, the issue of security becomes even more prominent in government procurement with EDI. Many EDI providers come with robust security measures and some even come with VANs (Value Added Networks) potentially increasing security even more. Look for these EDI providers that provide security across a wide spectrum to ensure all sensitive business and transaction data remains safe.
Be it the business organizations like online retailers Amazon and Walmart, or government agencies like GSA and DLA, they all have very specific compliance requirements for EDI data exchange. A good EDI provider must ensure that their EDI system is fully capable of handling all sorts of compliance mandates like HIPAA or GDPR, while also demonstrating their system’s resilience in a dynamic environment where compliance protocols can frequently change.
Also Read: EDI Compliance For B2B and B2G Transactions
The EDI solution needs to be flexible in respect to the document formats and documents supported. Meaning, the EDI provider must provide a solution that can use multiple document formats like ANSI X12, XML, JSON, EDIFACT, HIPAA, etc. depending on the situation. Moreover, based on the transactions carried out, the documents supported also need to be a wide range like EDI 850, EDI 810, EDI 860, etc.
Also Read: EDI for Multichannel Orders
Modern business landscape requires cloud-based infrastructure for EDI operations. It not only gives real-time visibility to the business owners on their EDI transactions, but also ensures the commitment of the provider in providing a modern solution to modern challenges in EDI. Cloud-based infrastructure is a major selling point for many EDI providers because it allows clients to connect to their EDI platform from anywhere in the world and does not restrict the EDI to their offices. So, you need to make sure that the EDI provider provides a highly sophisticated cloud platform for your EDI needs.
Frequent errors occurring on EDI transactions negatively impact business operations. EDI chargebacks from trading partners, penalties, contract cancellations, loss of revenue and credibility, all are possible outcomes of frequent errors on EDI transactions. If your EDI provider cannot automatically handle errors as soon as they appear, it can become a costly hindrance to your business, leading to loss of trading relationships, penalties, loss of revenue, and more. So, make sure to choose a provider that guarantees you a good error handling protocol defining what specific steps the provider will take to handle errors and resolve conflicts.
A user-friendly interface to operate and monitor the EDI document flow not only enhances the provider’s reputation in the mind of the business, it also makes it more efficient to conduct EDI transactions. The user-interface provides visibility to the workflows, reduces training time for business staff on learning EDI, and makes sure that the business gains transparent and error-free reports on their EDI transactions.
Oftentimes, businesses cannot deal with technical issues that crop up during business EDI operations. When that happens, they look to the EDI provider to provide required support. When a provider delays support or provides late and inaccurate responses to problems, it creates further confusion and chaos in the business. So, if you do not want critical operational failures, and disrupted operations, choose an EDI provider that provides 24/7 dedicated support and ensures quick resolutions to important issues.
Customization options that give out tailored solutions to meet specific business needs are extremely critical for an EDI provider. Each business has its unique operation mechanism, internal structure, goals, and approach to data exchange. An EDI solution specifically catering to these business needs, while also being customizable to changing business needs and environment, becomes critical for business owners. And the EDI providers must provide businesses with these kinds of solutions. So, choose an EDI provider that understands your business from the inside out and can develop tailored solutions to meet your specific needs.
Pricing structure is another critical factor when choosing EDI providers. An EDI provider that does not disclose their pricing structure, hides the costs for transactions, charges extra, and demonstrates an unprofessional attitude when it comes to payments processing is generally not liked by any customer. So, before you decide on an EDI provider, carefully review their pricing structure for hidden costs, features provided, their attitude when it comes to invoice processing, etc.
Partner onboarding process enables new clients to quickly integrate into the already-existing trading partner network of the EDI provider. Now, the quicker this process is, the quicker new businesses can integrate with new trading partners and start their business transactions. This means quicker returns and increased sales revenue. In the current fast-paced environment, the onboarding process becomes invaluable as more and more businesses are quick to improve their bottomline. So, when looking for an EDI provider, choose one that provides a quick and smooth onboarding process, and also look at their trading partner collaboration network.
Proven industry experience with EDI demonstrates that the provider is uniquely equipped to handle different sorts of circumstances pertaining to EDI transactions. If an EDI provider provides clients testimonials and has a strong track record of working in the EDI domain for multiple years, it is generally considered more reliable. So, always try to search for client testimonials, experience levels, and reliability of the EDI provider before choosing one.
Commerce Network has decades of experience with EDI. We have experienced staff who handle all mapping, integrations, testing and validation, error resolutions, compliance support and more. Our solutions are tailored to the specific needs of our clients and we deal with different EDI documents for transactions in B2B and B2G domains.
Moreover, we also help clients integrate with NetSuite ERP and QuickBooks Accounting, with advanced integrations for Amazon and Walmart EDI. You can check out our features, services, pricing, and contact us for further demonstrations.
Selecting the right EDI provider improves efficiency, compliance, and partner relationships. Focus on features that align with your business needs to make an informed decision. Once you choose an EDI provider, it may be extremely difficult to choose another one in case of problems. So, be prudent and analyze these 13 features of an EDI provider before making a decision that will help your business in implementing the right EDI solution.
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