Choosing the Right EDI Service Provider

EDI-Electronic Data Interchange

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The vast improvement in EDI technology and it acceptance among user in the past year has resulted the increase of provider in the market. It’s easy to become overwhelmed by the wide range of solutions available, however, there are a few factors to consider when selecting an EDI service provider in order for you to make the best choice possible.

Vendor Viability
It is vital to carefully look at the company's financial viability, credit quality, profitability, provider's experience with the desired applications, knowledge of the organization's industry, IT staff availability, and security provisions. If the company is not able to survive, its customers are open to financial risks including the not insignificant costs of switching providers.

There might be some companies which it may not be possible to review their financial statements. In these case, user should take into consideration as to how they are funded, how they have raised working capital, how many IT employees are there in the company, what are the company prospective etc. The vendor viability question should be more prominent when interviewing prospective providers.

Network Effects
The more hub relations a company has in place, the more connections can be made between points. In other words, if you are a supplier to ten retailers, and a service company has connected to only one of them, you will need to either use two companies, or get your provider to implement the other nine connections. It's much more efficient to go to a single provider that has the benefits of being tied to a large number of hubs.

Technology Platform
Check that the technology and the platform that supports,  it is viable for the long term. Most larger networks normally invest in more secure, stable, and scalable backend, so, these larger companies normally have better infrastructures. Understand the company's current platform and its plans, then find out how it plans to provide the resources to deliver on its plans.

Customer Care
Check the company's references, and get to understand the depth of their investment in their own customer support infrastructure. Ensure that the company has a variety of ways to deliver service. Whether they have experts focused on managing your application, state-of-the-art environment to support your application, fast turnaround on requests etc. It's important that they are able to work the way you want and need.


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