The problem with on-premise EDI solutions is that they can be notoriously difficult, expensive and time-consuming for in-house IT staff to manage. There are considerable complexities involved due to the vast array of standards used for exchanging data (such as Tradacoms, EDIFACT, EANCOM and XML). Multiple connectivity protocols such as AS2, FTP and SFTP, as well as ëlegacy’ protocols such as X25 and X400 create further complexities that need to be managed.
These complexities are intensified when trading partners make changes to their requirements, for example many retailers have moved from an EDI VAN to AS2 as their preferred connectivity preference and it is very common for trading partners to request new document types such as ASN’s. Even minor tweaks to documents, such as adding a new mandatory field, present challenges on an ongoing basis that makes maintaining EDI connections a time-consuming process which can distract internal IT resources from more strategic tasks.
The same is true for the on-boarding of suppliers, which needs to be managed, both in terms of supplier adoption and supplier enablement. Poor supplier onboarding is the single biggest reason for the failure of electronic trading and EDI initiatives.