Companies are always on the lookout for different ways to boost their efficiency. Today, the majority of companies are looking for ways to streamline the process of communicating information between themselves and other organizations. EDI or electronic data interchange is often a much more modern and efficient alternative to dated paper-based exchanges. Consider the following when selecting the right EDI provider for your business.
Communication Standards and Protocols:
Understanding that EDI is all about the standardization of formats and communications is key when looking for the best EDI provider. It’s crucial that you are aware of the EDI protocols and standards that currently apply to your organization since there are various different ones to consider and not all companies will use the same ones.
When choosing an EDI provider, it’s important to keep in mind that there are two main types of EDI software to consider. One type runs on an in-house IT system, which is usually kept on the business premises and requires a license. This allows EDI documents to be directly exchanged with your business partner’s EDI system. The other type of software is a cloud solution, which is hosted by a third party. It is typically accessed with a subscription model and is often the better choice for a smaller business or group of organizations that require the same EDI software.
Functionality and Integration:
A good EDI provider will need to provide support for different standards and protocols, and actionable EDI documents that are used by your organization. Before choosing a provider, make sure that they can easily be integrated with common documents such as shipping instructions, invoices, acknowledgments, receipts, orders, financial statements, quotation requests, and more.
Finally, since EDI transaction volumes can be very different for individual companies and may change in the future, it’s important to ensure that the EDI provider that you opt for provides software that can be easily scaled. Cloud-based EDI providers tend to be the best option for scalability since they can easily be increased or decreased.
EDI is the best way to communicate important transactions between your company and others. Keep these factors in mind when choosing the right provider for your business.