Imagine you’ve found the perfect opportunity with a new customer. Discussions seem promising, you’re practically shaking hands on the deal, and they drop the question: “Are you EDI (electronic data interchange capable?” Suddenly, having an EDI strategy —a vague concept just moments ago— becomes mission critical.
This scenario is incredibly common. If it isn’t that, it could be a merger or acquisition demanding system integration, growth initiatives necessitating rapid partner connections, your legacy software hitting end-of-life, or even the retirement of the one person who knows your systems inside and out. The trigger can vary, but I find the last-minute scramble to get an EDI solution up and running, to be a recurring theme.
It’s understandable that these sudden EDI mandates create anxiety, and I see that firsthand in the questions businesses ask us, as we begin scoping their EDI strategy projects. I’ve heard everything from “Will we have transaction visibility?” and “How quickly can we get this EDI solution up and running?” to the frequently asked “Can you integrate into our existing environment, like a plug-and-play?”
This blog aims to demystify EDI, drawing on my experiences with our customers, as an Account Development Executive at OpenText Business Network.
5 Signs you need to update your EDI strategy
Is it time to update your EDI strategy? Look for these telling signs:
1. Aging systems
Just the other day, I met with the CTO of a manufacturing company facing a major hurdle: their on-prem infrastructure had become a leaky bucket, making outsourcing EDI their only way to plug the resource drain.
Customers are often tied to in-house systems that, despite past customization, now limits their ability to adapt to the rapidly changing B2B integration landscape. This is exactly the kind of challenge an experienced EDI vendor is equipped to handle. We can swiftly grasp the complexities of your systems and leverage our proven expertise, shortening your learning curve and ensuring a smoother transition.
Key takeaway: Don’t divert valuable time and resources away from your core business and wait for inefficiencies to creep in so deep.
Ecolab precisely illustrates this challenge. The complexity and high costs of their in-house EDI solutions became a significant business impediment, ultimately leading them to seek our expertise.
2. Global expansion
Businesses can no longer afford to ignore the global marketplace. But scaling globally means diving headfirst into a vortex of complex B2B information flow—borders, time zones, languages, and the ever-shifting sands of trade mandates. Recent tariffs have turned this challenge into a fight for survival, demanding rapid partner onboarding and a trading partner matrix that bends, not breaks.
This reminds me of a European apparel company that was looking to strengthen their relationships with US retail giants. They came seeking our expertise and existing relationships with Nordstrom and Macys among other giant retailers of the world, to solidify their operations. Now, flip that scenario. US companies grappling with EU cross-border trade and e-invoicing mandates? It’s a whole different beast. I’ve personally witnessed how the B2B complexity multiplies, turning simple EDI transactions into a logistical nightmare.
Key takeaway: Don’t burden your local team with global complexity. Instead, tap into an EDI vendor with a proven global network, a network your potential partners are likely already plugged into.
Plastipak demonstrates this perfectly. They bolstered their small IT team with an EDI strategy that improved business agility as they scaled globally.
3. ERP integration
Let me tell you about an F&B company I met with, that was knee-deep in an ERP migration project. The IT Director was convinced the new ERP would be a game-changer. But, as they say, the devil is in the details. The first hurdle? B2B integration.
Turns out, there were about 10 different touchpoints, one of which was EDI, that needed seamless data flow into and out of the ERP. Weeks turned into months, as they swept through data, scattered across systems like confetti after a parade. The SI finally reached out to us, their EDI vendor, to help map out their ecosystem.
We make EDI integration remarkably straightforward with pre-built adapters for SAP, Dynamics 365, NetSuite, and practically any major ERP out there. Whether it’s a full migration, a version upgrade, or simply automating processes with ERP integration, our experience shows the smoothest projects bring us in early, making sure EDI doesn’t become a last-minute headache.
To illustrate the difference: integrated ERP-EDI systems pave a smooth, predictable path to effective trading partner collaboration, clear supply chain visibility, and minimal disruptions. In stark contrast, manual data entry is like trying to navigate rush hour with a map drawn on a napkin, while your trading partners are constantly changing the route, and every wrong turn hits you with a hefty penalty.
Key takeaway: Bring in EDI experts early. Ultimately, it’s an ROI question: is it more profitable to constantly address ASN nightmares, or invest in a solution that eliminates errors from the start?
The latter proved profitable for CNH. They now operate a supply network with seamless B2B integration between ERP systems, trading partner networks, and transactions.
4. Digital transformation
I’ll never forget this interesting conversation I had with the newly appointed IT manager at an automotive company – he inherited a system that was, shall we say, creatively assembled. At that point, an EDI strategy was practically non-existent as the EDI setup was a spaghetti mess of legacy systems, manual workarounds, and enough spreadsheets to wallpaper a warehouse.
The evident shortcomings of the handover process (or rather the lack thereof) were immediately apparent, as our initial conversations were entirely dedicated to basic system familiarization. It naturally progressed into a vendor consolidation project for their VANs and EDI translation software, a common scenario we see.
We are well-versed with the expectations for new IT managers, Directors or VPs to deliver process efficiencies and cost-savings. Successful implementation of such initiatives often hinges on EDI modernization, which drives automation. A strategic project like that could help achieve both immediate and long-term IT efficiency goals.
Key takeaway: Don’t settle for duct-tape solutions. Strategic EDI investment in a future-proofed EDI system is a more visionary and sustainable approach than perpetually mending a patchwork quilt of outdated systems.
Here’s how Metal Tech MFG transformed their processes. They made a strategic shift from an on-premises system to a modern cloud platform.
5. Support failures and material breaches
No lawyers involved (yet!), but the frustration a retail supplier I met felt, when their EDI support went MIA, might explain the title. For years, they relied on a seemingly adequate EDI vendor: transactions flowed, orders processed, invoices exchanged.
However, critical support incidents—trading partner connection failure, mapping errors, or a compliance hiccup— revealed an agonizing reality. Their IT team, already stretched thin, would spend hours on hold, wading through endless support tickets, and receiving vague, delayed responses. The true cost became apparent during a peak season, with significant ASN chargebacks and strained trading partner relationships.
Sadly, it’s a pattern I’ve observed repeatedly: the initial cost savings of a seemingly ‘good deal’ often masks a support nightmare, exacerbated by the painful and time-consuming prospect of migrating to a new EDI vendor.
Key takeaway: Don’t let poor support sabotage your operations. When those initial ‘savings’ are consistently eroded by costly chargebacks and countless wasted IT hours, the question inevitably arises: at what point does rational decision-making override the sunk-cost fallacy?
We understand this critical need for reliability, which is why our robust Service-Level Agreements and proactive support teams demonstrate our deep commitment to providing a stable and dependable platform.
Discover how our customers are deriving significant value from their investments with OpenText.
Let’s tame your EDI together
While an EDI strategy project might appear daunting, the true complexity lies in managing the consequences of broken processes. Partnering with a reliable EDI provider can take the stress out of the project.
We believe in building strong partnerships and providing the service you deserve. If you’re ready to move away from reactive fixes and towards a stable, efficient platform, I encourage you to explore our easy EDI integration solutions and get in touch.
Let’s talk about your unique EDI requirements and how we can help.
