What You Should Know About EDI Cloud Solutions
Most EDI users start out with a web based EDI solution because of the low cost of entry and because the software is already integrated with most ERP system and is accepted by larger partners such as the retailers. However the limitations and data costs of web based EDI systems usually bring a business to the point where it is viable to consider whether it is time to consider EDI Cloud Solutions.
Why Consider EDI Cloud Solutions
You would most likely start to consider moving to an EDI Cloud Solution when you start to recognise the limitations of your web based solution. Web based solutions first of all have security set backs because the data is often stored on the software provider’s servers which likely aren’t the most secure because of the cost implications of full security for a small software provider.
Another factor is data exchange costs. With an SaaS agreement there is usually a data usage limit, and above such you have to pay additional fees for data which can add up to be very expensive. So while SaaS solutions are great for companies starting out, for those well established and starting to transact a lot of data, the cost spirals.
A further factor which limits web based EDI solutions is that software providers often schedule data exchange to limit their own costs. This limits real-time data and can cause problems with trading partners who need instant data and transactions. This time lag can be particularly frustrating when dealing with transaction problems, because both parties will not be seeing the same data.
So this is why it may be time to upgrade to a Cloud EDI solution. Such systems will likely have a higher monthly cost for use of the transaction software but will reduce overall cost because data is aggregated to the Cloud. Due to this security is also much higher as large server providers are used that are able to invest in cutting edge security.
Speed of data transactions are increased because data is sent via standard communication protocols which don’t need to package and schedule data. This allows for fewer data errors and real time discussion of data and issues with trading partners.
A further advantage is that the software bought to manage an Internet Based EDI solution can be tailored to your industry or product / service. You have a lot more available and the data exchanged can be tailored for ease of input and to connect to ecommerce and retail partners very easily.
The Future of Internet Based EDI
Internet Based EDI will likely reduce in cost over time and cost of data transfer decreases and use of Internet costs decrease. More software providers are building solutions tailored to different industries to connect with Internet Based EDI utilizing Cloud Data Storage. So due to this competition and bespoke offerings the EDI solution will be better and cheaper for suppliers, allowing them to work more efficiently with their retail partners.