Switching to a new EDI provider is a scary thought. Your EDI transactions are critical to your business, and the thought of something going wrong during migration is serious nightmare fuel.
But if your current EDI provider is holding you back – by limiting your growth, complicating ERP integrations and connections with new partners, or making it difficult to correct errors – then you may not have much choice. An EDI provider who can’t meet your growing business needs will cost you more than the temporary pain of migration.
If you’re still on the fence about whether or not to find a new provider, here are a few bright red flags telling you it’s time to switch:
Integration Problems
When your EDI solution and your ERP are well integrated, data exchange is seamless. Information flows between the solutions easily, giving you improved accuracy and visibility, and boosting your overall efficiency.
But if your solutions don’t communicate effectively, you’ll run into trouble. You may be forced to stick to some manual tasks to cover things the technology can’t handle, which can introduce errors and drive your productivity down. You can also lose visibility into your EDI data, which can lead to issues like higher inventory costs or revenue loss due to chargebacks.
Inability to Scale
The goal of any business is to keep growing. That’s a whole lot more difficult if your EDI solution can’t keep up with the increasing volume of transactions.
In a perfect world, everyone would use the same EDI data format, but the reality is that different industries and organizations have different rule sets and kinds of documents. If your EDI can’t handle these varying forms of data, you’ll struggle to exchange information with them – which can make it difficult to onboard new trading partners.
Inefficient Error Handling
Another issue arising from an incomplete or inefficient connection between your EDI and ERP is errors getting missed, resulting in costly fixes. If you receive an order with an incorrect delivery address, for example, you want your EDI to be able to spot the discrepancy and alert you to the problem. Not catching that mistake means higher shipping expense as you have to re-send the order, and higher labor cost per order as your team has to manually check each transaction for errors.
Disconnect Between You and Your EDI Provider
One piece that can be overlooked in the analysis of your EDI solution is the relationship between your organization and your EDI partner. A provider who communicates well and handles issues quickly can make a world of difference. A few questions to ask yourself if you’re on the fence about making a change include:
- How responsive is your EDI provider? How long does it take to get a reply to a support ticket or other request?
- Does the provider collaborate with you to find solutions to challenges in your unique tech environment – or are they hands-off after implementation?
- Do you receive security and other updates on a regular basis?
- Does your provider’s pricing model work for your business now and in the future?
- Is it easy to add new trading partners and connect with their systems, or is it frustrating with lots of manual work every time?
Your EDI solution is an essential part of running your business, and using the wrong one (or the right solution with the wrong provider) can create major headaches and added costs. If your organization is experiencing growing pains, it may be time to take a good look at your EDI provider and decide whether it’s time to make a change. Already done the analysis and need a new provider? Get in touch to see how Better EDI can help you get control of your EDI transactions.