Implementing EDI doesn’t have to be complicated. This guide walks through modern tools, steps, and tips for faster, scalable EDI integration.
Electronic data interchange (EDI) has been around for a long time, but it’s far from obsolete. It remains the global standard for exchanging business documents with supply chain partners, from purchase orders to invoices and shipping notices, driving the core transactions that keep commerce running.
EDI technology has changed. Modern operations now turn to API-first platforms offering faster onboarding, centralized visibility, and real-time data exchange.
If you're scaling your business or working through legacy EDI challenges, it may be time to rethink your approach. This step-by-step guide will show you how to implement EDI effectively without being bogged down by outdated tech or lengthy setup times.
When to Consider Implementing EDI
Not every business needs EDI immediately, but certain situations make it necessary. The right time to implement EDI is when processes or integration gaps start impacting your ability to move quickly and serve partners reliably.
Here are some common signs it’s time to invest in an EDI system:
A Business Partner Requires It
Many large retailers and distributors require EDI before exchanging purchase orders, invoices, or shipping documents.
Slow Manual Processes
EDI helps reduce manual tasks, minimize errors, and speed up processing. Replacing paper documents with a standardized EDI format gives you a faster, more reliable workflow.
Operational Scaling
If you’re adding new partners, increasing order volume, or expanding into new markets, implementing EDI ensures you can scale without overwhelming your operations or IT teams.
Slow Partner Onboarding to Legacy Systems
If new connections are taking weeks or months, it’s time to consider a modern EDI solution built for fast, scalable onboarding.
How to Implement EDI Step-by-Step
Step 1: Identify Your EDI Requirements
Consider these key elements for a successful EDI implementation:
What types of EDI documents will you exchange?: EDI 850 purchase orders, EDI 856 advance ship notices, and EDI 810 invoices are common examples of EDI documents.
Who are your trading partners (TPs)?: Each TP may have different EDI requirements, timelines, formats, and pre-certification requirements.
What systems will you need to connect with?: What kind of system is the data coming from — ERP systems, warehouse management systems, accounting platforms, etc. — and where is the data going?
Step 2: Choose the Right EDI Solution
Choose your EDI platform based on your trading partner requirements, internal systems, and how quickly you need to go live. Types of systems include:
Web EDI
Ideal for businesses with minimal tech resources, web EDI solutions let users log into a portal to manage EDI transactions. While easy to start with, they can become limiting when order volumes increase or system integration becomes essential.
Managed EDI Services
Companies like SPS Commerce provide fully managed solutions that build and maintain connections. While it can reduce internal workloads, it’s often costly and less flexible.
API-First EDI Platforms
For companies scaling operations or managing complex systems, API-first EDI platforms like Orderful offer a fast path to modern EDI. Standardized data models, self-serve onboarding, and real-time data exchange reduce onboarding time and support long-term scalability.
An API-first approach provides direct integrations with systems like ERP and WMS without the overhead of maintaining custom maps.
Look for features that reduce long-term friction, such as:
Pre-built trading partner connections
Real-time validation and error handling
Testing environments and dev tools
Visibility across the onboarding lifecycle
Easy scalability and low-code flexibility
Step 3: Map to Your Internal Systems
The next step is to ensure that the EDI solution you select integrates well with your existing systems. For most businesses, that means integrating EDI workflows with internal platforms like your ERP, WMS, or accounting system.
Understand Your Data Flows
Start by data mapping these key points to your internal systems to ensure a seamless connection between your EDI transactions and day-to-day business processes.
Customer and supplier information
Order data (POs, invoices, shipping confirmations)
Inventory and fulfillment data
Real-Time vs. Batch Processing
Older EDI software often relies on batch processing, where files are collected and transferred at scheduled intervals. Modern solutions like Orderful's API-first EDI support real-time data exchange, allowing information to move instantly between multiple systems and partners.
The result improves responsiveness, reduces delays, and supports more dynamic supply chain operations.
Keep IT Complexity in Check
Modern EDI platforms simplify this mapping phase by providing:
Pre-built connectors for common ERP and WMS systems
Standardized data formats and mapping templates
Low-code environments for custom configuration without heavy dev work
The transition might seem daunting if you're moving from a custom-built integration or legacy VAN. API-first solutions reduce effort by eliminating one-off connections and ensuring smooth system alignment.
Step 4: Test with Trading Partners
Before going live, you'll need to validate that you meet EDI standards through testing and certification, especially with large supply chain partners. This procedure ensures correct formatting, EDI data exchange, and document interpretation between business systems.
What Testing Typically Involves
Most trading partners will require a certification process that includes:
Sending and receiving test files such as POs, ASNs, and invoices
Matching document formats to their compliance standards
Resolving any errors in mapping, aligning data elements, or communication protocols
API-first platforms like Orderful simplify testing and certification and help ensure a smoother EDI launch with tools like:
Testing environments for pre-launch simulation
Self-serve certification flows
Event logs and error tracking to speed up troubleshooting
Step 5: Go Live and Monitor
Once testing is complete, it's time to move into production. But even after launch, ongoing monitoring is necessary for ensuring data flows correctly, and you catch issues early.
Start Small, Then Scale
Begin with a few high-priority trading partners and core EDI documents. Once those transactions run smoothly, they will gradually expand to additional partners and document types.
A phased approach reduces risk, especially when transitioning from legacy systems or onboarding multiple partners.
Monitor Early Transactions Closely
Platforms like Orderful provide visibility into workflows so you can catch and resolve issues quickly. In the first few days after launch, keep a close eye on:
Transaction confirmations
Data accuracy and field mapping
Transmission logs and error alerts
After going live, perform ongoing health checks:
Set up automated alerts for failures or delays.
Assign internal ownership for key transaction types.
Review trading partner activity regularly to ensure connections remain stable.
Common Pitfalls and How to Avoid Them
Underestimating Onboarding Time
To avoid longer-than-expected onboarding times, use standardized data models and pre-built templates to speed up partner onboarding. Platforms like Orderful help reduce repetitive configuration and eliminate one-off setups.
Using Outdated Tech
To avoid slow scaling with legacy VANs and custom-mapped integrations, look for API-first solutions with centralized workflows and support for real-time data exchange.
Leaving IT or Ops Out of the Process
To avoid missing critical enterprise integration points, engage IT, DevOps, and stakeholders across departments early. Align workflows and systems upfront to reduce surprises at launch.
Not Planning for Scale
To make sure your system is built for high-volume transactions, partner expansion, or flexible document requirements, choose a platform that supports low-code configuration, partner self-service, and real-time scalability to help you stay agile as you grow.
Implement Easier With API-First EDI
API-first EDI is designed to simplify every part of the process — from onboarding trading partners to monitoring data flows — with tools built for modern teams.
Faster Partner Onboarding: API-first platforms like Orderful use standardized templates and a shared data model to reduce repetitive mapping work. This expedites the setup, testing, and partner certification process.
Modern Developer Tools: From built-in testing environments to event logs and version control, API-first platforms give developers tools to move faster and troubleshoot more effectively.
Centralized Onboarding Workflows: API-first systems centralize workflows for tracking onboarding progress, managing exceptions, and validating transactions across partners from a single place.
Built-In Error Handling and Monitoring: Real-time validation and monitoring tools help catch issues quickly. Automated alerts, retry logic, and detailed logs reduce downtime and support faster resolution.
When you implement EDI through an API-first platform like Orderful, you build a scalable, future-ready integration that evolves with your business.
EDI Implementation Doesn’t Have to Be Complicated
Modern businesses are moving faster and need EDI platforms to keep up. A smart, phased approach and the right solution can eliminate slowdowns and reduce errors. Whether you're onboarding your first trading partner or scaling across a complex network, modern tools make all the difference.
Orderful’s API-first EDI platform meets these challenges, simplifying onboarding, improving data accuracy, and eliminating paper-based transactions in a few days. With centralized workflows, modern developer tools, and built-in validation, you get a scalable solution that adapts to your business, not the other way around.
Speak to an EDI expert today and see how Orderful can make your implementation faster, easier, and future-ready.
