Uncovering EDI Misconceptions

Resistance to change and fear of the unknown are the biggest reasons why companies often don't grow their bottom lines.  EDI has consistently been shown to increase profits by reducing costs, yet unless a company is complying with an EDI mandate, few will actually take it on.  Typically, the top three EDI misconceptions I hear about are one, EDI is too expensive, two, you must have an EDI staff and three, it takes too long to implement.  Even though EDI has permeated almost every industry in some form, from supply chain to health insurance to finance, these misconceptions continue to persist.  Let's discredit them, one by one.

EDI Expense:  Is it expensive to install sophisticated translation software?  The answer is yes, but EDI providers have recognized the need for simple solutions for the small to medium business.  They have answered this need with inexpensive pay-as-you-go solutions.  These solutions usually are web-based and sometimes can even include integration.  They require no software to install and they use ready to go trading partner templates.  In many cases, such solutions are no more than the cost of the average cell phone bill!

EDI Staff:  The second misconception is that you need an EDI staff or a dedicated IT department.  Managed solutions, Software-as-a-Service (SaaS) and hosted services have exploded in recent years.  EDI solution providers have realized that many companies no longer want to preside over their EDI.  They want a behind the scenes, hands off solution and any EDI provider with a diverse portfolio of offerings can provide such a solution.  Such solutions do not require any technical staff whatsoever.  And quite often, these solutions can be a stepping stone to an in-house software solution.

Time-to-Production:  Lastly, the rumor that is takes too much time to implement EDI has also been greatly exaggerated.  Again, if you are looking at a sophisticated integrated software solution, yes, the maps must be developed, etc.  But for the small business looking at a 30 day deadline from Walmart, it is entirely possible to be in production by end of business tomorrow.  If you have such a time constraint, look for solutions such as web-based or a simple hosted solution.

Regardless of your particular objection to doing EDI, there is usually a solution that will mitigate your reluctance.  In my opinion, discrediting some of the misconceptions surrounding EDI is the responsibility of all EDI professionals.  EDI technology offers many benefits such and the less scary we make it, the more we will all see our bottom lines increase. 

Aurora Technologies/EDI Support, Inc. specializes in EDI implementation and data integration solutions.  For more information, please contact Shandra Locken, at shandra@edisupport.com or 800-404-9182 x25.