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EDI Company

When discussing an EDI company, most often people mean either an EDI VAN or an EDI software vendor. Sometimes this can also include EDI consultant companies or EDI service bureaus.

An EDI company like an EDI VAN is essentially a network created to send EDI data between companies in such a way as to guarantee receipt. An EDI company like a VAN functions like the USPS – companies have mailboxes and use the EDI company to send messages. Like the USPS, the EDI company guarantees receipt and has a number of services that customers can utilize to enhance their business, such as analytics of the EDI data traffic, the ability to send EDI messages to multiple parties without having to maintain the transport infrastructure, etc. The EDI company is legally responsible, once a customer has entered into an agreement, to facilitate the organization by providing the transportation network necessary to transact business between them and their trading partners.

When an EDI company refers to an EDI software vendor, it is the developer of the EDI software that is in focus. An EDI company that is an EDI software vendor will often have several businesses; they will develop and market EDI software, they may have services associated with the EDI software such as installing and integrating the EDI software with the backend systems of the customer, they will provide EDI technical support that assists the customer whenever they have an issue or problem. Such an EDI company is probably the most comprehensive repository of knowledge on EDI issues and what is required in the industry, especially since the EDI company will have many customers that have a plethora of needs and requirements.

An EDI company that functions as a consultant has as its main business providing consulting services, primarily for managing the trading partner requirements and to providing services that facilitate projects such as EDI integration or installing new EDI software. These EDI companies must have a range of EDI knowledge, and most of them focus on a particular customer segment. They may focus on EDI integration into backend systems such as SAP or Quickbooks, or work with the on-boarding of trading partners for large companies. Sometimes EDI companies will take on EDI outsourcing projects where an organization outsources its EDI function or department.

The last type of EDI company is an EDI Service Bureau. This is an EDI company that takes on the management of the EDI trading partner relationship for organizations that are too small and have too low an EDI volume to justify purchasing EDI software.

How should you select an EDI Company? For a small business, there are many factors to consider. How do you know which EDI Company will be right for your business?   Any EDI Company will provide a set of products tailored for a particular type of customer.  The idea is to find the EDI Company that is targeted to your individual needs.  Below are some criteria to use when evaluating the EDI Company that you may potentially work with.  It’s especially important for the small business to carefully research its choice of an EDI Company and how that particular EDI Company will fit within the goals of the business.

What kinds of products does the EDI Company provide?
Each EDI Company tailors its products to a specific type of customer.  Are the products from the company easy to use? Are they powerful? How expensive are the products from this EDI Company? Can the EDI Company provide several versions depending on your needs?

Does the EDI Company offer training?
Training is a critical factor in implementing an EDI project.  Does the company offer training as part of the EDI implementation package? Is training available from the company on an as-needed basis as your needs change?  How much does the EDI Company charge for training? Is training available on-line through the EDI Company?

What level of support does the EDI Company provide?
Support is an important part of doing business with any EDI Company.  The EDI Company should have multiple tiers of support available so that you can select the level of support that will meet your needs.

Is the EDI Company financially stable?
How long has the EDI Company been in business? How much experience does the EDI Company have with EDI? Is the EDI Company going to be in business in 2 years? In 5 years?

Can the EDI Company provide an upgrade path?
Another issue to consider is whether the EDI Company you plan to do business with will be able to give you access to more advanced products as you need them. Does the EDI Company have the ability to upgrade their products seamlessly?

Is the EDI Company well known to retailers?