Streamline your B2B communications with the right EDI provider. Explore different vendors, services, and key selection criteria for an informed decision.
Ready to ditch the paperwork and speed up your business transactions? Electronic Data Interchange (EDI) can help you automate the exchange of documents with suppliers, partners, and customers — cutting down on errors and costs. But finding the right EDI provider for your business isn’t always easy.
This guide will explain the different types of EDI services and what to consider when choosing the right one.
Understanding the Different Types of EDI Vendors
EDI vendors offer different services based on your business needs. Here are the main types of EDI providers and how they work:
SaaS EDI
SaaS (Software-as-a-Service) EDI providers offer cloud-based EDI solutions you can access through a website, so you don’t need to install anything on your computer. Typically, you pay the provider a subscription fee. SaaS EDI is a great option if you want something affordable, easy to use, and scalable.
EDI VAN Providers
Value-added networks (VANs) are services that securely send EDI data between businesses. They also offer extra features like checking data for accuracy, tracking, and ensuring you meet industry rules. VANs are common in industries with strict regulations, like healthcare. There are two types:
Unmanaged VANs: This type of network provides basic data transmission without extra support.
Fully managed VANs: These networks manage everything, including data exchange, monitoring, troubleshooting, and compliance. These are better for businesses needing full support.
EDI Brokers
An EDI broker helps businesses exchange documents by converting data into the right format and securely delivering it. Unlike basic networks, brokers offer extra services like translation, validation, and integration with business systems. Some provide full-service management and handle everything from setup to ERP connections.
EDI AS2 Providers
An EDI AS2 provider helps businesses securely exchange EDI documents using the AS2 protocol. These providers manage security certificates and confirm message delivery. EDI AS2 providers are widely used in retail and consumer goods industries for secure B2B communication.
EDI Service Bureaus
Service bureaus are providers that fully process a company’s EDI transactions. They handle data entry, translation, and sending it to trade partners. This is a good choice if your business lacks the IT resources to manage EDI.
Managed EDI Service Providers
These providers manage your entire EDI process, including integration, monitoring, and ensuring compliance with industry standards. They’re ideal if you want a hands-off solution with ongoing support.
EDI Software Companies
These companies create EDI software that you can install and manage yourself. There are three main types:
Cloud-based software: Stored online, this software is accessible from anywhere and updates automatically.
On-premise software: This software is installed on your company’s computers. It gives you more control and security but requires your IT team to maintain it.
Hybrid solutions: These combine cloud-based and on-premise software, letting you keep sensitive data in-house while still using cloud features.
Key Factors to Consider When Choosing an EDI Service Provider
Selecting the right EDI solutions provider depends on several factors. Here are key considerations to keep in mind:
Business Needs and Requirements
Determine whether you need a fully managed EDI service, a software-based solution, or a simple VAN provider. Your choice should align with your transaction volume, industry requirements, and in-house IT capabilities.
EDI Standards and Protocols Support
Make sure the EDI provider supports the industry standards your business uses, like X12, EDIFACT, or AS2, and can work with the communication methods your partners require.
Technology and Integration Capabilities
Choose an EDI vendor that integrates with your existing ERP, CRM, or accounting systems. Look for flexible APIs, pre-built connectors, and cloud compatibility.
Trading Partner Network
Having a strong network of trading partners can make onboarding and compliance easier. Some EDI providers already have connections with major retailers, manufacturers, and logistics companies.
Cost and ROI
When choosing an EDI provider, compare costs such as setup fees, transaction charges, and subscription plans. Consider the long-term savings and benefits, like improved automation, to get the best return on investment.
Customer Support and Expertise
Good customer support is key, especially if you’re new to EDI. Look for providers with helpful service, guidance during onboarding, and industry knowledge.
The Top EDI Solutions Providers
Here’s a comparison of some of the best EDI providers, highlighting their features and benefits:
Orderful
Orderful is a modern, cloud-based EDI provider that helps businesses quickly connect with their trading partners. With Orderful, companies can integrate in real time, reducing the time it takes to exchange data. This streamlined process helps businesses save time and reduce errors. It’s an ideal choice for those seeking efficiency and faster onboarding.
Boomi
Boomi offers an integration platform that supports EDI capabilities, helping businesses connect multiple systems. While it facilitates seamless data exchange, it’s better suited for businesses that need to integrate various software applications beyond just EDI. It’s a flexible solution, but more technical expertise may be required to leverage its capabilities fully.
Cleo Integration Cloud
Cleo offers a fully managed EDI solution with AI and automation, which is great for handling large amounts of data and ensuring compliance. Cleo is a complex system and might be better for larger businesses with specific security and compliance needs — it may require more management than simpler EDI options.
DCKAP Integrator
DCKAP Integrator is built so online businesses can easily connect their sales and ERP systems. It works well for e-commerce but may not be as valuable for companies outside of retail.
IBM
IBM’s Sterling B2B Integrator is a powerful EDI solution that’s well-suited for large companies with high-volume transaction needs. It’s a reliable choice for enterprise-level operations, but businesses with more straightforward needs might find it overwhelming or too resource-intensive.
MuleSoft Anypoint Platform
MuleSoft’s Anypoint Platform uses APIs to connect different apps and data, offering flexibility for custom EDI solutions. It’s best for companies that need more customization but might require extra technical setup.
OpenText
OpenText offers EDI solutions with built-in compliance tools, making it a popular choice for industries with strict regulatory requirements. While it’s well-regarded for its security features, its solutions may be more complex and might require a longer implementation time. It’s a reliable choice for businesses needing to meet regulatory standards.
Seeburger
Seeburger specializes in secure EDI transactions and automation and is a great fit for logistics and manufacturing companies. While it works well for these industries, businesses in other sectors may not get as much out of it.
SPS Commerce
SPS Commerce is a cloud-based EDI provider known for its extensive retail trading partner network — it may not be as relevant for companies outside the retail sector. It’s an easy-to-integrate solution but might lack the customization needed by businesses in other industries.
TrueCommerce
TrueCommerce offers an all-in-one EDI platform with great supply chain visibility, perfect for businesses working with many suppliers. It’s an excellent choice for companies with many moving parts.
Talk to an EDI Expert
If you’re unsure which EDI supplier best fits your needs, Orderful is here to help. Our team of EDI experts will guide you in selecting the perfect solution to streamline your transactions, improve efficiency, and fuel your business growth.
Get in touch with Orderful today to unlock the full potential of your operations.
