EDI outsourcing becomes costly as volume grows. What was a quick and easy choice a few years ago is now a budget leak. So how do you know when it is out-grown and what are the next steps? And, since most traffic with key customers is crucial to your company’s success, when is leaving it to an outsourcer too risky?

Here’s how you can tell that a change may needed: You’ve probably out-grown your system if you pay more than $1,500 monthly. At this level you can automate high volume documents such as Purchase Orders (850), Shipment Notices (ASN, 856), and Invoices (810), while continuing to use a software-as-a-service provider for low volume documents such as Quotes or Routing Advice or for smaller customers. Second, when customer service complaints are too high, a change is needed. Since the cost of automation continues to decline, running the numbers is now appropriate.

Overview

An outsourcer provides integrated activity by reformatting the data from your ERP system to your customers’ EDI format. You can reformat and control your business document flow by buying your own software. A rough estimate for purchasing your own EDI system is $5,000 to $20,000, plus implementation time of 2 or 3 weeks. A good quick check is to learn if your ERP systems version is current (or nearly so). Another is to learn if you’ve an out-of-date EDI system that can be re-activated for only the cost of the annual maintenance fee. Many companies have older systems preceding the move to an ASP.

Integration occurs in steps – get specifications, map, test, train, and then convert. You can expand in steps as you gain experience since you can move one customer (or document) at-a-time; leaving low volume customers at your outsourcer.

Today the level of knowledge needed is less because the ERP-to-EDI system links have been set at literally thousands of companies. Second, because the data is transmitted through the Internet using the EDI INT AS2 standard, lost or duplicated transmissions are infrequent. Finally, the systems have far better control so the slow recognition of errors inherent in a outsourced configuration is eliminated. This means happier key customers.

Dot Com Internet Vendors

Mass merchants such as Amazon.com transmit an order for each consumer since each has a different ship-to address. This means a torrent of orders, which can drastically increase the cost of an out-sourcer or VAN. Additionally the cost is multiplied by the number of related documents such as the Invoice. The remedy is direct transmission and automatic loading of orders. DCS has experience with your existing EDI, AS2, and ERP systems to help achieve this integration.

Conclusion

When you need to plug a drain in your budget and become more self-reliant, your first step is to contact DCS for a free assessment. With our help you can calculate the ROI and then activate EDI for high volume, key customers or move to a modern version supporting XML that is already adapted to your ERP system. The next step is easy, call or e-mail DCS for more information.