Monday, February 28, 2005

Why outsource EDI?

Although EDI can be complex and expensive, some companies choose to handle all of their EDI needs in-house (see my post in this blog called “What does it take to do EDI in-house?” for an explanation). Other companies choose to outsource both the personnel and all of the necessary components to a third party EDI company. Reasons to outsource EDI to an EDI provider include:

• Lower cost
• Faster implementation of new EDI partners
• Access to an easy-to-use EDI system
• 24 hour/7 days per week monitoring and maintenance
• Fewer distractions from the company’s main mission

An EDI company that specializes in outsourcing solutions can take care of all of the components of EDI. The EDI provider takes care of the software, VAN transmission, hardware, communications, labor, special expertise and constant monitoring. Frequently the cost is less because the EDI provider can pass along savings due to the economies of scale associated with providing EDI to a number of clients.

And outsourcing EDI can help a company more quickly achieve the benefits of EDI such as:

• comply with their customers EDI capabilities and requirements
• lower costs for their customers by reducing the administrative burden on their customers
• increase their efficiency by automating business to business processes
• improve the speed and accuracy of documents received from customers
• support selling to their customers in the way they want to buy.

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