There are many benefits to exchanging documents through EDI, including greater efficiency and reduced errors. However, there is the question of who exactly should host your EDI system. Should you own a system yourself, or hand it over to a third party? In this article, we’ll examine the pros and cons of each option.
Option #1 – In House EDI System with Direct Connection to Trading Partners
This option gives you complete ownership of your EDI system. It is the most cost-efficient option in the long term as the only recurring fees are for the EDI system’s licensure. You can also be instantly alerted of EDI system issues and have the flexibility of supporting your system internally.
Although you will save money in the long term, you will have to pay more in the short term to purchase your EDI system and develop maps. Your company will also be responsible for housing and caring for the servers for your system.
Option #2 – In House EDI System with VAN Connection to Trading Partners
A VAN – Value Added Network – is a third party which ensures EDI connectivity between trading partners. Incorporating a VAN simplifies your EDI because you only need to set up a communications connection with the VAN rather than a different one for each individual trading partner. However, the VAN will charge you for each document sent through their network.
Option #3 – Third Party EDI and VAN System
If you would prefer to not purchase your own EDI system, you have the option of outsourcing to a third party. This will help you save money in the short term.
There are complications that come with using a third party’s system. In addition to VAN network charges, you will be charged for the translation of every document sent through the third party. There will also be a delay in error notification as the information must flow through the third party system before it gets to you.
DCS Can Help
No matter which of these options best fits your company’s needs, you’ll likely need some help in making the most out of your EDI. Data Communication Solutions (DCS) offers multiple services to help your organization, including EDI development, managed services, and support. You can also sign up for a no-cost assessment to determine what EDI solution is the right choice for your business. For the best B2B integration solution for your business, contact DCS today!