EDI provider: Is yours fit for purpose?

UK businesses are making changes to the way in which they manage the essential documentation that enables them to trade with their supply chains.

In new research* commissioned by digital supply chain technology EDI provider Transalis, the vast majority of respondents say they are looking to review the EDI solution they rely on to exchange trading data within the next six months.

Is EDI addressing the challenges of 21st-century commerce?

New research* reveals disparities between EDI user requirements and services delivered by EDI companies.

EDI Provider explained

Your EDI provider delivers the technology that enables documentation to be shared across supply chains. It helps with a vast range of document types including orders, invoices, Advanced Shipment Notices (ASNs), remittance advice, inventory lists, delivery instructions and sales reports.

EDI has become widely used in many sectors across the world, with big retail players, such as Ocado and Morrisons, mandating its use for their manufacturers, suppliers and partners in warehousing, logistics and delivery.

That mandate often leaves operations, finance and IT teams in the supply chain with a digital transformation challenge: how to implement EDI, or replace a legacy system, without disrupting BAU (Business As Usual).

At the same time, decision-makers do recognise that a successfully performing EDI solution can reduce operational costs and drive efficiencies, so benefiting the bottom line.

EDI gives you visibility and transparency across your trading network

The research findings show that EDI providers have a clear opportunity to help companies move forward and prosper while meeting the challenges presented by a fast-developing business environment impacted by Brexit, Covid, rapid technological change and growing competition.

Among the key points from the research, more than four out of ten companies said they were expecting to significantly increase the number of trading partners, with 16% outside the UK.

Therefore, they need to deliver solutions that afford visibility and transparency across the entire trading network.

Is your EDI solution due for a review?

The growing disconnect between companies’ EDI requirements and what most EDI partner are offering is transparent in the research findings.

34% cite dissatisfaction with their incumbent supplier as the main reason they are thinking about switching.

Many said their current EDI provider were not keeping up with their requests to make rapid and regular updates to their EDI solution to reflect changes in the trading network.

The message for EDI companies is clear: the exchange of data needs to be frictionless. It is critical that EDI providers become more efficient in meeting their clients’ day-to-day needs.

99% of respondents say they will be reviewing their current EDI solution ‘in the near future’.

At the same time, 60% of respondents felt their EDI is so embedded in their organisation they believe it is virtually impossible to switch to a more suitable provider without affecting BAU.

EDI helps businesses to stay competitive

It is clear from the research that in today’s dynamic and integrated business environment, companies are seeking to innovate solutions that provide frictionless self-management of their trading partner network, rather than relying on an EDI provider holding all the cards.

EDI companies that insist on offering a cumbersome managed service are likely to lose competitive advantage in favour of those that provide a more agile self-service SaaS model. In fact, when asked about their ideal solution, 39% of respondents said they wanted to be able to self-manage and control their own EDI processes.

Respondents said they wanted to switch EDI companies because they recognise that an underperforming EDI service can have wide-ranging implications on their competitiveness and long-term success.

Associated costs include loss of revenue from missed orders, the time it takes to correct errors and inaccuracies, extra order processing and fulfilment time, and lack of transparency and visibility across the broader business environment.

Make the switch

The good news from Transalis is that our continual focus is to make the buying process for EDI as easy and quick as possible while ensuring the solution works efficiently and cost-effectively for you and your trading network.

That means immediate set-up, removal of lead-time frustration and enabling faster onboarding of partner connections. We can save you money across your cost centres including finance, operations, IT and logistics.

The latest addition to our range of EDI solutions is Transalis eDI Instant™, the first solution of its kind to offer online sign-up with immediate access to cloud-based EDI.

Transalis eDI™ Solutions

* Independent research commissioned by Transalis Ltd: Is EDI addressing the challenges of 21st-century commerce?