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How To Choose The Right EDI Service Provider [+ 6 Tools ]

Girinath
December 19, 2024 |
EDI Service Provider

Most companies miss a few critical things when choosing an EDI service provider. Instead of making an informed decision, they often rely on random recommendations or simply pick the most popular provider.

But you must remember, what worked for someone else might not work for you. Your business goals and needs are different. Choosing a provider just because they’re popular doesn’t guarantee they’ll solve your specific issues. In fact, you might end up paying for features you don’t even need.

That’s why it’s so important to make a mindful decision when selecting an EDI provider. The choice you make will impact not just your business operations but also your reputation. We’ll learn about this more, but first, let’s look at the different types of EDI service providers available in the market.

Top 6 EDI Service Providers To Consider

We’ve put together a list of the top EDI providers that not only make EDI transactions seamless but also integrate smoothly with your other business systems. The best part is that you won’t need any additional services from outside vendors as they all provide comprehensive EDI services.  

1. DCKAP Integrator

DCKAP Integrator is a low-code, cloud-based EDI solution designed specifically for distributors and manufacturers. It’s built to tackle the unique challenges these industries face and helps you navigate them with ease. 

The tool is extremely user-friendly with no learning curve. It’s also widely recognized as a leading ERP integration solution because it has worked with almost every ERP system used by manufacturers and distributors. This makes DCKAP Integrator an excellent choice to seamlessly sync your ERP and EDI while streamlining other business systems.

It automates processes, integrates systems, and handles EDI translations, giving you an end-to-end solution. It’s more affordable compared to many other tools out there and supports popular standards like X12 and EDIFACT and follows the AS2 protocol for transmission. Plus, It’s a completely hassle-free solution for EDI integration and automation. Once it’s set up, you don’t need to worry about a thing. 

2. TrueCommerce

TrueCommerce offers an all-in-one EDI platform designed to simplify compliance and integration. With automatic updates to Trading Partner Maps, staying compliant becomes effortless.

It stands out for its strong ERP integrations, being the preferred native EDI provider for systems like Sage, ProcessPro, QuickBooks Enterprise, and ERP-One. TrueCommerce also supports all major ERPs and can integrate with other platforms upon request.

Pricing is customized based on your company’s size, EDI complexity, and the number of trading partners. For a tailored quote, their team works closely with you to meet your specific needs and budget.

In short, It is a fully managed EDI service. An ideal choice for businesses looking for seamless EDI management and integration.   

3. SPS Commerce

SPS Commerce Fulfillment is yet another well-known name in the EDI space, offering robust solutions for businesses of all sizes across various industries. From suppliers and retailers to ecommerce platforms and logistics providers, SPS Commerce provides the tools and expertise to streamline your EDI processes.

This tool particularly stands out if you’re looking for flexibility in fulfillment models. It supports multiple communication protocols, including VAN, AS2, and others, offering businesses the freedom to adapt as needed. They’ve built a reputation as a full-service EDI provider for helping businesses monitor, manage, and optimize their EDI operations effectively. 

4. Boomi

Boomi’s EDI platform is designed for businesses looking to streamline transactions with vendors, partners, and distributors. It offers flexibility, scalability, and seamless integration across your digital ecosystem.

With features like message exchange, transaction monitoring, workflow configuration, and testing, Boomi helps you automate processes and improve efficiency through an intuitive, user-friendly interface.

Ideal for businesses with a large partner network, Boomi ensures smooth communication and reduces manual processes. Plus, you can test it out first with their 30-day free trial to see if it fits your needs. 

5. MuleSoft

MuleSoft is another very popular name in the EDI space, offering modern solutions through its Anypoint Platform. By using APIs, it helps businesses move beyond traditional point-to-point integrations, making it easier to share data and EDI documents across networks. 

With hybrid integration capabilities like ESB, iPaaS, and unified API management, MuleSoft simplifies connections with any system or partner—cloud or on-premise. It also supports rapid onboarding, popular protocols, and message logging, ensuring smooth and efficient EDI transactions for growing businesses.

6. Cleo

Cleo Integration Cloud (CIC) is a cloud-based platform designed to simplify and automate EDI processes for both B2B and B2C operations. Whether your systems are on-premise or in the cloud, Cleo helps connect, transform, and route EDI and non-EDI documents seamlessly.

It supports popular standards like X12, EDIFACT, and TRADACOMS, automates data flows, and speeds up onboarding for new business partners. With end-to-end integration visibility and business intelligence on message transfers, Cleo ensures smoother operations and faster revenue generation. 

Recommended reads: 6 Best EDI Integration Tools [+Top Choice for Distributors]

Types Of EDI Service Providers

When it comes to EDI, there are many options, but most providers can be grouped into three main categories based on the services they offer. Let’s break them down:

1. EDI Software Solutions

These are integration software tools that also provide EDI services. They are:

  • Flexible and scalable: EDI software adapts to your needs and grows with your organization. 
  • Hassle-free: Once you share your EDI requirements, everything is automated and streamlined, requiring minimal manual input. 
  • Efficient: It integrates with your back-office systems, improving business processes and saving time.
  • Secure and reliable: Documents are exchanged directly between your EDI software and your business partner’s, minimizing delays and errors.

This is the most reliable option for businesses looking for automation and scalability while maintaining full control over their EDI operations.

2. EDI VAN Providers

An EDI VAN (Value-Added Network) provider offers EDI-as-a-service through a secure outsourced network. Here’s how it works:

  • Simplified communication: Instead of adhering to each partner’s document exchange standards, the VAN acts as a translator, managing all communications.
  • Setup flexibility: You can submit business documents manually via a web portal or connect using your preferred protocol.
  • Cloud-based Web EDI option: Some VANs allow you to input data directly into a web form, making it easier to get started without back-end integration. 

However, there are some downsides:

  • Costly for high volumes: While the upfront cost may be low, transaction fees can add up as your business scales.
  • Manual effort required: You’ll need some EDI knowledge on your team to handle manual tasks.
  • Slow onboarding: Adding new partners can take 3–6 months, depending on the provider.
  • Dependency on provider support: If issues arise, you rely on their ticketing system, which can lead to delays and limited control.

This option is best for businesses with low transaction volumes and fewer integration needs but may not be ideal for those with large-scale EDI operations.

3. EDI Service Bureaus

Service bureaus act as EDI contractors, handling your EDI operations for you. They usually follow a pay-as-you-go model. They manage everything for you, making them suitable for businesses with minimal internal EDI expertise. But in this case, you have little to no oversight of daily EDI operations. Plus, there’s often no opportunity to integrate data with your internal systems.

While this option is convenient for businesses wanting a fully outsourced solution, it may not work for those looking for deeper system integration or control.

Recommended reads: All About Acumatica EDI Integration [Methods, Process & Benefits]

What To Consider When Choosing The Right EDI Provider

There are countless articles offering standard checklists to help you pick the right EDI provider. But before you dive into evaluating service providers, it’s essential to evaluate your own business first. Here’s why these key factors matter and what could go wrong if you don’t consider them: 

1. Consider Your Company’s Size and Objectives

Your company’s size and infrastructure determine how complex or simple your EDI system needs to be. Without aligning the solution to your business goals, you could end up with a system that’s too basic to meet your needs or overly complicated for your operations. 

Ignoring this step might lead to disruptions, unnecessary expenses, or limited scalability as your business grows. A poorly matched solution can also slow down processes and reduce efficiency.

2. Evaluate Your Trading Partners and Transaction Volumes

The volume of transactions and the number of business partners you handle directly affect the type of EDI solution you need. 

Many EDI providers charge based on transaction volume. If you handle a large number of transactions, this pricing model can quickly become expensive. In such cases, it’s better to choose a provider who charges based on system integration rather than transaction count.

Failing to evaluate these factors can lead to unnecessary costs and inefficiencies. A solution that doesn’t scale well with your transaction volume might result in bottlenecks, delayed communications, or errors. These issues can harm your business relationships and even lead to financial penalties like chargebacks. 

On the flip side, selecting an overly robust system for a small volume of transactions might mean paying for features you don’t need, wasting valuable resources.

3. Check Compatibility with Your Backend Systems

Seamless integration between your EDI and backend systems, like ERP or accounting software, is crucial. Without proper integration, you’ll face data mismatches, manual data entry, and increased errors in processes like order management, invoicing, or inventory updates. 

Over time, these inefficiencies can slow down your operations, increase costs, and lead to frustrated trading partners who expect smooth and accurate transactions.

4. Consider The Total Cost Of Ownership

Choosing an EDI solution without understanding its cost implications can hurt your business in the long run.

Many providers charge transaction fees that seem affordable initially but quickly become expensive as your business grows. Switching providers later to escape high fees can be even costlier, both financially and operationally.

A lack of cost evaluation could leave you overpaying for features you don’t use or struggling with unexpected fees that cut into your profit margins.

5. Assess Your Team’s EDI Expertise

EDI isn’t just about the software; it also requires expertise. If your team isn’t equipped to handle EDI processes, you’ll rely heavily on external support, which can be expensive and time-consuming.

Failure to evaluate your team’s capabilities could lead to delays, unresolved issues, and dependence on providers for every minor adjustment. This lack of control can disrupt operations and make scaling your EDI processes much harder.

Also read: EDI vs APIs in B2B Supply Chain Integrations

Questions To Ask When Evaluating An EDI Service Provider

Once you are done evaluating your business and understanding your needs, it’s time to ask the right questions to the top EDI service providers you are considering. The answers you get will help you decide the right EDI solution provider that aligns best with your goals, budget, and operational requirements.

Here are 10 essential questions to guide your discussion with your third-party provider: 

1. How Does the Onboarding Process Work?

  • Can you provide a demo of your platform and explain the setup and implementation process?
  • How long does it take to onboard new trading partners and go live?
  • Do you handle trading partner testing, and does this include integration with my ERP if required?

2. What Support Do You Offer for ERP Integration?

  • Is ERP integration included in your services, or is it an additional cost?
  • Do you support specific ERP systems, and how do you manage custom integrations?

3. What Are Your Customer Support SLAs?

  • What are your response and resolution times for issues?
  • Do you provide support through phone, email, or a ticketing system?

4. Can I Make Changes to EDI Maps?

  • Do you allow customers to update EDI maps themselves, or does your team handle all changes?
  • If corrections are needed after going live, how quickly can these be implemented?

5. Where Is the EDI Platform Hosted?

  • Is the platform hosted on your servers, or do you use cloud providers like AWS or Azure?
  • What is your uptime guarantee, and do you offer any reliability assurances?

6. What Level of EDI Knowledge Is Required on My Team?

  • Will I need EDI-trained staff to manage the platform, or do you offer full-service support?
  • How much manual intervention will be required from my team?

7. What Are the Costs and What Do They Include?

  • Can you break down the one-time setup fees, monthly fees, and per-document fees?
  • Are testing and implementation included in the cost?
  • Are there any additional charges for onboarding new trading partners, error tracking, or customer support?

8. How Do You Handle Errors and Notifications?

  • How do you notify clients about unacknowledged documents, communication failures, or mapping issues?
  • Do you offer tools or dashboards to track and resolve errors?

9. What Happens in Case of Chargebacks?

  • If the issue is due to EDI platform or mapping errors, who bears the cost of chargebacks?
  • Do you provide assistance in resolving disputes with trading partners?

10. Can I Speak to References?

  • Can you connect me with references from clients who work with similar trading partners?
  • What feedback do these clients typically share about your platform and services?

Recommended reads: Understanding EDI Shipping Integration [Methods + Process]

Things To Keep In Mind Before Signing Long-Term Contracts

Once you’ve shortlisted your EDI partner, you’ll likely move towards signing a contract. But before you do, here are a few things you must clarify to avoid surprises later.

Length of the Contract

Always check how long the contract lasts. A 1-year contract is a safe choice to start with. It gives you time to evaluate the provider’s service and lets them earn your business year after year.

Tech Support and Customer Service 

Understand the level of support you’ll get throughout the contract. Is there 24/7 assistance? Will you get a dedicated support team? Reliable support ensures you don’t lose time or money when issues arise.

Price Increases

Clarify if there will be any price hikes during the contract period or at renewal. This is important because some providers might lure you in with a low initial price but raise it significantly later.

Adding New Trading Partners or API Connections

Ask how the contract will change if you add new trading partners or require additional API connections. Will there be added fees? Will the contract length extend? Knowing this upfront helps you plan for business growth.

Carrying or Overage Costs

Check if there are any carrying costs for unused services or overage fees if you exceed your transaction limits. These hidden costs can quickly add up and affect your budget.

Integrate Your ERP With EDI Using DCKAP Integrator

DCKAP Integrator is a leading EDI solution provider for manufacturers and distributors. It’s a powerful tool with a cloud infrastructure designed to synchronize all your business systems, including ERP, CRM, PIM, inventory, and EDI software, in one streamlined solution.  

It’s a scalable solution backed by a team of EDI experts, enabling you to reduce manual labor and ensure efficient data exchange with your trading partners. 

With extensive experience in ERP integration for B2B businesses, DCKAP Integrator has worked with almost every major ERP system. This means we have the skills and expertise to handle complex integrations tailored to your industry needs. Plus, you don’t need additional resources or vendors. If you already have an EDI solution, we can integrate it with your existing systems. If you’re looking for an all-in-one provider to manage your entire EDI process, we’ve got you covered.  

Sound like what you’re looking for? Reach out today and let’s make your EDI integration seamless!

FAQs

What is EDI?

EDI stands for Electronic Data Interchange, a system for the electronic exchange of business documents like purchase orders, invoices, and shipping notices between trading partners. It replaces traditional paper-based methods with faster and more accurate data transfer, ensuring smoother supply chain processes for small businesses and large enterprises alike.

What is an EDI service provider?

An EDI service provider offers complete EDI solutions that enable businesses to exchange documents electronically with their partners. They provide a reliable infrastructure, real-time access, and latest technology to streamline your supply chain processes.

Who are EDI support specialists?

EDI specialists are professionals who help businesses manage their EDI programs. They ensure smooth integration, troubleshoot errors, and provide guidance on data communication technology and EDI suppliers, catering to small companies, mid-sized businesses, and large enterprises.

Who are the best EDI service providers?

Some pioneers of data communication technology include DCKAP Integrator, TrueCommerce, SPS Commerce, Boomi, MuleSoft, and Cleo Integration Cloud. These providers offer tailored solutions for small companies, mid-sized businesses, and large enterprises, ensuring efficiency and cost savings. 

How do I choose a new EDI provider?

When selecting a new EDI provider, consider their global reach, compatibility with your data formats, ability to handle real-time communication, and expertise in your industry. Look for providers who can act as a single provider for all your EDI needs.

Girinath

Girinath is a Senior Business Analyst with vast experience in Integrations of SaaS products across various platforms such as ERP, eCommerce, CRM, and other customer solutions. He also plays a role as a Solution Consultant showcasing the Product features to the prospects and providing solutions to the B2B customers based on their Business requirements. He acts as a liaison among the stakeholders and ensures the customers achieve the desired results. In his free time, he enjoys playing cricket, traveling to interesting places, taking part in adventure sports, and tour vlogging.

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