Three Key Questions to Consider Before Incorporating an EDI System


Electronic data interchange (EDI) is a popular software platform through which companies exchange essential business documents with trading partners. These documents may be in the form of purchase orders, customers’ details, invoices, inventory records, and even shipping details. Before installing and operating an electronic data interchange system, the companies and their trading partners need to come to an agreement. These parties need to decide on which transmission protocol to use for their electronic data exchange. They can opt for Applicability Statement 2 (AS2), Secure File Transfer Protocol (SFTP), Odette File Transfer Protocol (OFTP). Only then can these businesses transmit and receive vital commercial information through their networks without any difficulty.

EDI System – What should business owners ask service providers?

Many small business owners may be aware of the importance of installing and operating a customized electronic interchange data system for their businesses. Unfortunately, most of them may feel they cannot afford to buy the necessary IT infrastructure. The prices of the necessary hardware components and software applications may be beyond the reach of these owners. Moreover, they need to find the money to employ the right professionals to operate the platform. This is why these owners opt to hire a reliable provider who can provide them with a suitable EDI system. In doing so, the owners need to ask this vendor the following three questions:

1 What kind of industry experience does the service provider have?

The service provider business owners choose should have adequate industry experience of many years. Business owners need to know whether the existing clientele of the service provider has worked with a wide range of industries or not. Moreover, customers should be satisfied with the quality of service offered. The provider should have sufficient knowledge of operating both cloud and web-based platforms.

2 Does the service provider have an extensive portfolio?

Business owners need to work with an EDI service provider who understands their specific needs. The provider should be aware of which EDI systems can help businesses expand their operations in the market. These solutions should not be difficult to integrate into the enterprise resource planning system.   Moreover, these platforms should be compatible with the IT infrastructure of the businesses’ trading partners.

3 What kind of additional services does the EDI service provider offer customers?

EDI service providers with a good reputation in the market do not just offer their customers the best solutions; they also provide valuable additional services to them like after-sales support. The EDI service providers business owners work with should also do the same thing. The team of professionals should provide ongoing support even after installing the EDI system for the business.

Business owners can streamline the internal efficiency of their businesses by hiring a service provider, offering them the best EDI system customized to suit the needs of their company. Owners must ensure the provider has a good reputation in the market. They should check track records and experience of the service provider. The pricing policy and other fees should also be compared before choosing the right service provider for incorporating the EDI systems for their business.

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