What are the Costs of EDI Implementation?

EDI (Electronic Data Interchange) technology has become highly popular in the supply chain industry and the global market is forecast to be worth almost £4 billion by 2029 – up from £1.5 billion in 2021.1  

Despite this, over 41% of companies have not adopted EDI processes and 21% still rely on web portals. These businesses have a higher risk of process inefficiencies and are missing out on the immense benefits that EDI solutions can offer.

Cost is a major barrier to EDI implementation and we know that investing in EDI can seem daunting, especially if you’re just starting a business. Our experts want to demonstrate the value of this investment and provide you with insights into the costs of EDI software.

Why implement EDI? 

EDI is a worthwhile investment in the future of a business. Whether it’s a delivery getting delayed because the truck drivers’ invoices haven’t been received, or the manufacture of a car’s steering wheel being paused because the customs documents for the rubber casing are still on a computer in Thailand, the manual transfer of data is time consuming and very costly.

Suggested reading: If you want to find out more about EDI, check out this blog – What is EDI? The History and Future of Electronic Data Interchange.

What are the benefits of using EDI software?

  • More efficient data transfers: An EDI document increases speed and accuracy by eliminating cost-intensive manual tasks. This reduces the risk of errors, processing delays, and lost revenue from chargeback penalties.
  • Reduced costs: EDI software will streamline supply chain processes and increase productivity without the need to hire new staff. According to IBM, the cost of processing an invoice with an EDI system is roughly £2.70 compared to about £24 when processing manually.2
  • Increased customer satisfaction: EDI reduces the risk of human errors, lost orders, and shipping problems. Furthermore, it gives your employees more time to focus on enhancing customer service and improving customer satisfaction.
  • Gain a competitive advantage: EDI integrations give small and medium size businesses a competitive advantage and help them stand out from other vendors.

Suggested reading: If you want to learn more about how EDI software can deliver a competitive advantage, take a look at our eBook – The Supply Chain Centred Business

How much does EDI cost to implement?

Calculating the costs of implementing EDI is essential to ensuring your solution will have a substantial ROI for your organisation. You must have a realistic understanding of how much EDI software will cost, including ongoing fees such as maintenance and support. There can be an understandable concern around plunging money into EDI networks, especially since so many software investments have endless hidden charges. However, working with a team that delivers EDI solutions that fit your needs will ensure you’re maximising ROI and reaping the benefits of your data.

The costs of EDI will vary depending on whether you decide to manage EDI in-house or partner with a third party EDI provider. You will also pay more if you opt for fully managed EDI support, although you should recover these fees through the cost-saving benefits. 

In this blog, we will discuss some of the EDI costs you should consider if you want to get the most out of your EDI system and maximise your return on investment.

A range of specialised software

To successfully implement EDI, you first need to invest in a range of software that’s key to the success of EDI implementation.

EDI requires the following software:

  • Communications software
  • Mapping and translation software

How much does EDI software cost? 

The costs associated with this software will depend on the scale of your organisation, whether you’re creating your own network or relying on a third party EDI/VAN service, and how many trading partners you’re exchanging business documents with.

Implementing specialist software will increase EDI costs. However, it’s a great investment as it will ensure that your EDI solution is tailored to the needs of your organisation and able to support you as you scale. 

Pro tip: Click here to learn more about our EDI VAN, DiNet.

A team of EDI specialists

It is possible to integrate EDI in house, but it’s a difficult task that requires real expertise. This is the reason why most organisations leave this task to EDI professionals.

While EDI is a well-established process, EDI experts with the skills to translate your business needs into a specific EDI solution are becoming harder to find. Some examples of this necessary expertise:

  • EDI consultants, who can take a detailed look at your organisation and determine how best to implement EDI.
  • EDI managers, who oversee the execution of EDI, ensuring it’s adhering to the frameworks and best practices. 

Outsourcing EDI implementation to a specialist company is a worthwhile investment as they will ensure that EDI implementation is smooth and supports your long-term goals. It will also set you up for success over your competitors, as you’re accessing that rare expertise that’s so necessary for seamless data transfers.

Tip: Choosing the right provider is essential if you want EDI to be effective. At Data Interchange, we have decades of EDI expertise in-house, across multiple industries. This means we’re ideally placed to help you scale with the help of innovative EDI solutions.

Ongoing managed support

If you choose to manage and maintain a traditional EDI solution in-house, it requires an extensive, expert team. Sourcing this is costly and difficult, especially if you don’t know who you need in order to successfully implement EDI. There is also a need for ongoing upgrades, amendments, and maintenance to ensure the EDI implementation can handle all the transfers occurring between you and your trading partners. This isn’t viable for many small- and medium-sized businesses.

To properly benefit from an EDI implementation, you need the support of experts to ensure that your EDI infrastructure continues to suit the needs of your organisation as it grows. This is where fully managed EDI subscription models come in. Many businesses opt for EDI managed services rather than keeping all that expertise and responsibility in-house, as it ensures EDI is carried out correctly and seamlessly. 

Pro tip: Want to opt for EDI managed services but don’t know where to start? Check out our blog to learn the ten things to look for in an EDI managed service provider.

5 benefits of investing in fully-managed EDI support

  1. Access 24/7 support: EDI experts will take on the responsibility of managing your EDI infrastructure and provide you with dedicated customer support. They will monitor your system for issues 24/7 and carry out routine maintenance to keep your EDI software operating effectively. 
  2. Remove supply chain complexities: A fully managed service provider will remove the complexity of the EDI ecosystem and help your business overcome even the most complex supply chains. In fact, EDI-as-a-service was already changing supply chain best practices in 2021.
  3. Scale EDI solutions with ease: EDI specialists can scale your EDI solution up or down to meet supply chain demand. Managed services help you create responsive, flexible routes within the network to mitigate risk.
  4. Bridge EDI skills gap: EDI is a popular technology used by a wide range of organisations. However, it is also a niche specialisation and many businesses struggle to recruit EDI specialists. Partnering with a fully managed service can reduce the EDI skills gap and help you avoid paying to hire and train new staff.
  5. Build a hybrid EDI solution: A fully managed service can bundle different types of EDI software to ensure the best possible outcome for your business. Combining elements of multiple types of EDI is an effective way to improve the flexibility of supply chain relationships.

Suggested reading: Find out how Data Interchange contributed to a 564% growth in business over 10 years through our EDI fully managed service. Read the full case study with Sertec here.

Ensuring your EDI solution is worth the price tag

EDI will help you navigate complex global supply chains, streamline processes, gain a competitive advantage, and ultimately, increase sales and revenue. However, choosing what solution is most applicable to your business and how best to implement it is difficult to ascertain. That requires in-depth understanding of the methodologies, best practices and solutions, something a lot of small- and medium-sized businesses do not have.  

Speak to the EDI experts at Data Interchange

Speaking to an expert will ensure that your EDI implementation is smooth and cost-effective. 

Data Interchange is a specialist EDI managed service provider with over 35 years of experience. We can advise on what combination of EDI software and tools is best for your business, and will ensure it’s implemented in a way that’s scalable and economical. 

If you’d like to find out more about how EDI software can support your business or discuss our EDI pricing models, talk to an expert today.

1  Electronic Data Interchange Software 2022-2029 | Fortune Business Insights 

2  Electronic data interchange (EDI) software and solutions | IBM 

Transform your approach to supply chain management

Talk to an Expert








    Epicor values your privacy. Website terms and conditions.

    RELATED ARTICLES

    The EDIFACT DELJIT T-Set: Structure, Benefits & Use Cases

    The EDIFACT DELFOR T-Set: Structure, Benefits & Use Cases

    The VDA 4915 Message Explained

    The VDA 4905 Message Explained

    T-Sets | ANSI X12 810

    How to optimise your EDI and ERP system integration

    T-Sets | ANSI X12 997

    T-Set | EDIFACT INVOIC

    T-Set | EDIFACT DESADV

    Exploring Cloud EDI Services in ERP: Architecture, Security, and Scalability

    VDA Explained: Message Standards and Transaction Sets

    ANSI X12 Explained: Message Standards and Transaction Sets

    EDIFACT Explained: Message Standards and Transaction Sets

    The Power of Web EDI for Global Supply Chains

    How to Get the Most Out of AS2

    How EDI Simplifies Transactions in the Manufacturing Sector

    Why Your Automotive Supply Chain Needs an OFTP2 Connection

    Digital Supply Chain Trends Impacting 2023 and Beyond

    How to Manage Global Supply Chain Complexities

    How to Overcome Supply Chain Risk

    What is the Future of Supply Chain Management in 2023?

    How to Improve your Supply Chain Strategy

    Why Scalable EDI is Integral to Rapid Business Growth

    How to Pick the Right EDI File Transfer Protocol

    An Introduction to OFTP2 (Odette File Transfer Protocol)

    What is PEPPOL?

    A Guide to EDI Protocols

    EDI VAN Costs: Get the Right Solution for your Business

    How Much Does EDI Cost?

    How Do On-Premise EDI Solutions Work?

    Our Plan at Data Interchange to Change EDI and Supply Chain Management

    Integrating EDI with your ERP

    In-house vs Managed Service EDI

    What is an API Integration? And how does it affect EDI?

    Epicor Acquires EDI Provider Data Interchange

    6 Benefits of EDI in the Logistics Industry

    4 Challenges Facing the Logistics Industry and How to Overcome Them

    Top EDI Solution Providers in 2023

    Solving Supply Chain Problems in the Logistics Industry

    B2B EDI Integration Best Practices in 2023

    How to Choose The Right EDI Provider in 2022

    Supply Chain Analytics Trends in 2022

    Future-proof your business: Take Advantage of Market Growth

    Announcement: Andrew Filby becomes CEO of Data Interchange

    7 Advantages of EDI in The Automotive Industry

    Consumer Expectations cause Demand for Integrated Data

    How to Optimise Your Automotive Supply Chain Processes

    Post-Pandemic Supply Chain Challenges Increase the Pressure

    EDI Made Simple for the Automotive Industry

    Overcoming Supply Chain Visibility Issues in the Automotive Industry

    Complex Supply Chain Problems and Simple Solutions

    Supply Chain Flexibility: Why your customers need it

    5 Automotive Supply Chain Challenges Facing the Industry

    Supplier Performance Management Reimagined in 2023

    How to Unite Emerging Supply Chain Management Technology Trends

    Meet the Team: Marketing

    Supplier Management Best Practices after COVID-19

    The Future of EDI: Looking Beyond 2025

    The top three supply chain data exchange requirements

    The Advantages of EDI in E-Commerce: How to Gain a Competitive Advantage Online in 2021

    A Crash Course on EDI Industry Standards: ANSI x12 vs EDIFACT vs OFTP and more

    What is EDI Mapping?

    What is EDI: The History and Future of Electronic Data Interchange

    The Future of the Automotive Supply Chain

    Supplier Relationship Management: How to reduce risk and improve performance

    How EDI-as-a-Service Changes Supply Chain Best Practices in 2021

    Agile Supplier Onboarding: Supply Chain Security in Uncertain Times

    The impact of failed EDI on Supply Chain

    Cloud-Based EDI Solutions vs On-Premise

    Different Types of EDI Compared

    5 Most Common EDI Implementation Issues and How to Solve Them

    Are your EDI documents ready for the new EU/UK customs border?

    B2B Integration Challenges

    EDI vs API: Bridge the B2B connectivity gap

    Ten things to look for in an EDI Managed Service Provider

    World Mental Health Day 2020

    Logicalis & Data Interchange – partnering for success

    EDI – A data integration service critical to business success

    Joining forces with SnapLogic: bringing together market leading iPaaS and EDI solutions

    Joining Data Interchange: My lockdown experience

    Data Interchange announces strategic partnership with SmarterPay

    Access new trading partners quickly for COVID-19 support

    Keeping supply chains moving

    Our Web EDI solution gets a makeover

    Coronavirus: Our Business Continuity Plan

    With love from Data Interchange ♥

    A new decade, renewed ambition and the next generation

    Brexit and EDI

    Data Interchange transform their Support service for an improved customer experience

    Interview: An update on Data Interchange’s new CEO, Robert Steiner

    Data Interchange appoints Robert Steiner as new CEO

    MQ messages over ENX – Renault

    Five key questions for your EDI provider

    Data Interchange at the Odette Conference 2018

    How to select the right EDI provider

    Future proof your EDI and unleash growth

    EDI: the Supply chain performance enhancer

    Taking cost out of the chain

    Non-EDI users held up in the mail

    Over 41% of companies at risk without EDI

    ​Consolidating VAN providers

    Increase visibility and productivity of supply chain logistics with Data Interchange’s B2B integration solutions

    Data Interchange wins large business of the year award

    Data Interchange launch new Support Portal

    Data Interchange will be showcasing our EDI solution offerings and promoting the benefits of MMOG/LE

    Metaldyne receive special recognition from Ford for 11th consecutive year

    Making the move to cloud based EDI Solutions

    Top 5 reasons to switch to EDI Managed Services

    Data Interchange to power QAD Managed EDI On Demand