How to Tell If Your Firm Needs EDI Outsourcing

Posted by Brooke Lester on Aug 6, 2019 12:13 PM

If you are implementing an EDI system for the first time, considering a move to a new EDI system, or tired of the hassle of EDI, you most likely have many questions. One of those questions is bound to be, “Do I need EDI outsourcing, or can/should I operate and manage my EDI system in-house?”

How to Tell If Your Firm Needs EDI Outsourcing

Read on to learn what indications to look for when considering whether EDI outsourcing is right for you.

When Does EDI Outsourcing Make Sense?

There are certain times when EDI outsourcing makes more sense than keeping EDI operations in-house.

If your core business or information technology competencies are not integration, then it may make sense to utilize EDI outsourcing services. This is a pretty common scenario; after all, many companies do not specialize in integration or are not strong where IT integration is concerned. That is why it may be a better choice to go with an EDI outsourcing company, so you do not have to expend vital resources on something that does not drive your business forward.

“If your core competencies are not integration, it may make more sense to utilize EDI outsourcing.”

Another scenario in which EDI outsourcing is a logical choice is when maintaining an EDI environment does not offer you a competitive advantage. You may be doing EDI because you have to (maybe the reason is to do business with a trading partner such as Walmart), but other than that it offers no meaningful impact to your business. Many do not want to invest resources in a competency that does not help them stand out in the crowd, so allowing someone else to handle EDI may be a wise decision.

It can be frustrating when you feel as though you are forced into implementing EDI so that you can do business with someone else, especially when you do not see any clear benefit. EDI outsourcing firms help you reduce that frustration by taking the burden of operating and managing EDI tools off your hands.

“EDI outsourcing firms remove the burden of operating and managing EDI tools.”

EDI infrastructure is a significant purchase. It is not just the cost of buying hardware and software, but also includes the cost of maintenance and support, so its an easier call when this competency offers competitive advantage. When you outsource your EDI, you do not bear those expenses, but can still comply with the requirements of business partners and realize the benefits of the revenue stream that accompanies EDI competency.

ON-PREMISE? HOSTED? CLOUD? HYBRID?

On the topic of expenses, take a minute to consider what happens if you do not carry out EDI transactions correctly. If information is missing, if a value is not entered properly, or if you do not acknowledge a transaction, you may face costly penalties. EDI outsourcing companies are experts at transaction processing; you do not have to worry about egregious chargebacks from trading partners because experts are at the helm.

“EDI outsourcing is a good option when you do want to invest in in-house EDI competencies.”

For some companies, EDI outsourcing makes sense. It is less expensive, less burdensome, and allows them to focus on their core business activities. The right EDI outsourcing partner is dedicated to you and your needs, focusing on building a long-term relationship.

REMEDI helps many businesses choose the right EDI strategy. Get REMEDI's free B2B Integration and EDI Architecture Documentation template and then contact us to learn how to use it to make the right EDI choices today.

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