How Much does EDI Cost?
The cost of EDI largely depends on your requirements and the requirements of your Trading Partners. If you are doing business with one Trading Partner and have a limited number of transactions, then a small EDI investment will suffice. These types of solutions can include a web-based or hosted solution and in many cases the EDI cost will be no more than the average cell phone bill. However, if you have multiple Trading Partners and several hundred transactions per week, then you may want to consider a bigger EDI investment and look at a more sophisticated solution such as translation software with integration. Either way, the cost of EDI is far outweighed by the benefits.
While it’s easy to calculate the cost of setting up an EDI solution, it’s much more difficult to calculate the cost of NOT doing EDI. How many potential customers would you lose if you do not implement EDI? How many staff hours are being used on manual processes? These are questions that need to be addressed when deciding how and if you will implement EDI.
Additional questions to consider:
Does your accounting software have integration capabilities?
- How many of your current and future trading partners are EDI capable?
- How many transactions are you processing?
- What types of documents are you required to trade?
- Will your trading partners require UCC-128 bar code labels?
These are all factors that will directly influence the type of solution and your EDI cost.