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EDI Costs – Key Considerations

December 10, 2019

EDI Costs – Key Considerations    

When choosing an EDI provider it is important to understand what your contract covers and what your future EDI costs are likely to be. 

We are often approached by companies who say that their EDI costs are escalating or they are finding it hard to forecast EDI costs, so we have put together a list of key considerations that we recommend thinking about in terms of EDI costs:

-    Are there any costs in terms of software of hardware?
The answer to this question depends whether you opt for an in-house or outsourced solution. If you choose an in-house or on-premise EDI solution, your EDI costs will include an initial investment in software and hardware. There are no software or hardware EDI costs associated with an outsourced solution as it is hosted by the EDI provider.

-    What internal resources are required?
It is important to think about the costs associated with the internal resources needed to support and maintain an EDI system. With an outsourced fully managed solution, the EDI provider will look after the day-to-day EDI requirements on your behalf, meaning your staff can be deployed elsewhere in the business. However, in the case of an in-house solution your EDI costs will include EDI specialists.

-    How are the EDI costs billed?
It is worth considering, for budgeting purposes, how your EDI costs will be billed. Many providers charge a set-up fee, followed by an annual fee.

-    Are the EDI costs fixed or variable?
Many of our clients, prior to joining the TrueCommerce network were charged a high premium per transaction. This approach is not only costly, it causes difficulty in accurately forecasting EDI costs, as transaction volumes fluctuate.

At TrueCommerce we recognise the importance of cost control and accurate budgeting and therefore operate a fixed price model. Our pricing takes into consideration transaction fees and accommodates for mandated changes in message formats; with no hidden or variable EDI costs there are no nasty surprises when our clients receive their invoice.