Launching High Volume EDI
Bring EDI In-House and Reduce Outsourced EDI Cost
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 out-sourcer too risky?
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.
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.
The benefit: no more per document, per customer, or per month cost.
EDI outsourcers and some VANs provide 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:
- EDI system: Windows 8.1 $10,000; Windows Server $25,000
- Implementation time approximately four weeks for 10 customers.
- Deployment time of two weeks
A good, quick check is to learn if your ERP systems version is current (or nearly so). Another is to learn if you have an out-of-date EDI system that can be re-activated for only the cost of the annual maintenance fee.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 out-sourcer.
Today, the time and cost required 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.
DCS can install your EDI system on your current VM server or in the cloud. Read more about moving to cloud services.
When you need to plug a drain in your budget and become more self-reliant, your first step is to contact DCS for a no-cost 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.