If the continuous processing of paper-based documents is starting to become a drain on internal resources or one of your customers has mandated EDI, it is time to start trading with your partners electronically. EDI is used to accelerate supply chain communication and as a result, your business might have been asked to implement EDI by your trading partners, especially if your company operates in the retail, manufacturing, wholesale, CPG, Building or pharmaceutical industries, among others. 

EDI speeds up order and invoice processing time, improves accuracy and increases reliability, but what do you actually need to do to get started? 

5 step guide to getting started with EDI  

1. Assess your requirements

For many smaller businesses, EDI is a mandatory requirement imposed upon them by their larger customers. If this is the case, EDI is essential because it unlocks new sales opportunities that would not be possible without EDI. If your business has been asked to trade via EDI by your trading partners, you should begin to look for an EDI provider to help initiate the project. 

For larger businesses, EDI is often used to streamline efficiencies and maximise internal processes by automating supply chain communication. If your organisation is struggling to communicate with customers, suppliers or 3PL partners efficiently, or struggling to integrate business messages such as purchase orders, invoices and Advanced Shipping Notices into your ERP, then EDI can benefit for your business. 

2. Choose an EDI provider  

It’s important to select an EDI provider that can help you achieve your business goals. Some providers might help you become EDI capable but cannot provide the ongoing skills and expertise to enable you to focus on your business’s core competences.  

Fully managed EDI providers enable your business to leave EDI to the experts by outsourcing all aspects of your EDI journey into their hands. Often, providers that provide a managed service allow IT teams to reinvest time into other departments and free up administrative time to be used elsewhere within the business. 

3. Establish EDI maps with trading partners  

To initiate a successful EDI project you need to ensure that your business is aligned with the requirements of your trading partners. You will need to establish the correct EDI mapping connections to ensure that your EDI messages are exchanged in the correct format and standard with your customers and suppliers. As part of this process, you should define the types of data that are going to be exchanged. Often, EDI providers will handle any translation required to convert EDI messages from a trading partner into the required format for your internal systems.  

4. Test the EDI connections and validate EDI transactions

It is essential that you test all EDI connections and message exchanges before going live. EDI represents the exchange of business critical data and each stage of the project should be thoroughly tested to ensure all data is transacted correctly before going live. With thorough testing, you will be able to identify and rectify any potential errors or discrepancies before they can impact your business. 

5. Set the project live and continuously monitor 

Finally, once your business has thoroughly tested the EDI solution, you can go live and begin exchanging EDI messages with your trading partners. It’s imperative to proactively monitor the solution to protect your business against the possibility of missed messages, which can damage retailer – supplier relationships and harm your bottom line.  With EDI systems often undergoing changes to accommodate new message requests, new trading partners or altered integrations, businesses that have the support of EDI providers that provide a fully managed service are most likely to enjoy a successful EDI system. 

Two of the main things to consider when adopting EDI are transaction volume and the resources and support needed to run the solution in the long term. 

Volume of EDI transactions 

How many transactions will you be using EDI for? Will it just be with a few customers or suppliers to start with or your entire trading network? By adopting EDI, do you expect your trading network to grow? How many times a day will you be exchanging documents? 

The amount of transactions will determine how heavy the usage will be and will have an influence as to what solution you choose, whether that is a web EDI solution or integrated EDI into your order management system. Our technical experts will be able to advise which solution would be the best fit for your business’s needs. You may also find our blog post ‘Moving beyond compliance with EDI ERP Integration’ useful. 

Internal resources 

Have you thought about how you would look after the day-to-day management of EDI? Are you looking to hire someone to take on these responsibilities? With an outsourced solution, you don’t have to. 

An outsourced managed service solution takes away the pains and responsibilities that come with the day-to-day management of EDI. Our first-class managed service is led by a team of technical experts, continuously monitoring the delivery and processing of messages, and proactively resolving any issues meaning you don’t need to worry about it.