How to Choose the Right EDI Provider for Your Business Needs

An EDI solution can give your business efficiency a massive boost, automating the exchange of information between your organization and your partners and providing better clarity across your supply chain.

But, as with any major software investment, choosing the right provider is key to the success of your EDI project. The software itself is important, but even more crucial is that the provider takes the time to fully understand your unique business needs and works with you to implement a solution that will best meet those needs. 

EDI implementation takes considerable effort and resources – having to go through it again a year or three down the line because the provider isn’t all you hoped for is not a position you want to find yourself in. Here are a few of the most important things to look for when choosing the best EDI provider for your business:

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Your choice of platform model.

There are three main types of EDI implementation: on-premise, cloud, and hybrid. 

An on-premise solution is installed on your own servers and maintained by your own in-house IT team. A cloud-based EDI works on a traditional SaaS model, with your third-party provider handling the server and software maintenance. The hybrid model combines on-prem and cloud solutions, giving you more control over your data processing while taking advantage of cloud-based software benefits like global access to your business data.

There are pros and cons for each option, and which one will be best for your business depends on your unique business environment. The important thing is to decide which model works for you, and find a provider who can support whichever one you choose.

A solid portfolio and track record.

A provider’s experience with businesses similar to yours is a good indication for how well they’ll handle your needs. Look for a company who understands your industry standards and compliance requirements (for example, if you’re in healthcare, you want a provider who fully understands HIPAA).

Easy integration with your existing tools.

The purpose of EDI is to enable better document and data exchange, not to provide another roadblock. If a solution can’t properly communicate with your existing ERP, for example, it’s not going to help you achieve the efficiency and visibility you were looking for in the first place. You also want to consider both your on-prem and cloud systems when evaluating the integrations offered by a provider, so you don’t end up with more data silos instead of fewer.

Scalability.

Finding the perfect EDI solution for your company as it looks now is great – but will you have to hunt for a new solution if your organization experiences sudden or dramatic growth? How many customers and vendors can it handle – and will that be sufficient for your longer-term business goals? What does the onboarding process for new vendors or customers look like with this solution – will it be quick and easy to add new partners, or will it cause more headaches than it solves?

Clear Data Ownership.

One of the myths surrounding EDI is that you’re stuck with the first provider you choose because they own your data. If a provider gives you the sense that your data will be locked into their platform, run – your data is yours, and no EDI provider can restrict your access to it. You can avoid any potential confusion here by looking for a provider who makes your ownership of your data clear from the beginning.

Collaboration.

No two businesses have identical needs or goals, so your EDI solution shouldn’t be one-size-fits-all. Your provider should be responsive to your questions and concerns, and work with you to ensure the solution solves your business challenges – without becoming another challenge itself.

EDI implementation can be a significant investment, especially if you’re a smaller organization. Choosing the right provider now can help you avoid having to go through the process again in a couple of years – and helps you find a solution that can grow with your business.

Learn more about Octolan’s approach to EDI and how we can give you the level of flexibility and control that meets your needs.

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