Every business is working hard to find new ways to cut down the additional costs. With the constant evolution of technology, it becomes easy for organizations to cut labor costs. Paper-based methods, prone to errors, are replaced with technologies to enhance communication and transactions. Whether your traditional communication system is lagging because of your internal resources or your partners are transmitted to electronic transmission, it is the right time for you to implement EDI in your organization to trade electronically with vendors and partners. EDI software solutions help your business to grow and achieve organizational goals.

As per the needs and goals of your organization, there are a few points you must go through before adopting EDI managed service. So, we have listed such factors below to guide you on what factors to consider before switching to EDI software and help you choose the right solution.

Electronic Data Interchange – Introduction

Electronic Data Interchange, EDI, exchanges business information and documents between customers, partners, or suppliers. It includes the transmission of purchase orders, shipping receipts, various types of invoices, etc. EDI effectively ensures data security, mitigates human errors, improves accuracy, and increases reliability, which can help your business grow. Adopting automated systems helps business development and builds strong relationships with your partners and customers. 

Implementing and integrating EDI with your current system is not that simple task. You may face many challenging aspects which are needed to be considered while deploying the process of EDI. There is a requirement for a dedicated and knowledgeable team, advanced tools, and much more to move further with maximum efficiency.

Basic EDI Terminology

EDI was introduced in the 1970s, but some organizations are still unaware of all its concepts and terminologies due to the lack of information and understanding. It is essential to know basic EDI terminology to select the right EDI software for your organization. Due to its sophisticated and nuanced functions, you may encounter complicated terms associated with EDI managed service. It’s essential to familiarize yourself with these concepts before you begin EDI integration in your business. By doing so, you can decide on the most appropriate strategy for implementing EDI in your organization.

  • Electronic Data Interchange (EDI)  is an electronic method to exchange transactions in a coded way.
  • EDI integration ensures that EDI documents can be shared across different business units or entities by synchronizing new EDI software with the existing system.
  • EDI Mapping is the process of converting a coded EDI transaction into a document that can be read and understood.
  • Compliance is the act of adhering to retailer requirements and other statutory regulations for electronic trading.

After understanding these terminologies, you can leverage the potential of EDI in your organization.

Things to Consider Before Starting EDI 

Installing EDI software is the most challenging aspect, and various solutions are required, such as expensive hardware to process EDI at maximum efficiency. However, it is essential to remember that EDI solutions are scalable and can be easily configured to meet sales and production demands.

Searching and finding the best suitable Electronic Data Exchange solutions is essential for businesses – you must consider the following.

Your potential transaction volume – It’s crucial to anticipate your future needs, and businesses only require solutions capable of adapting to your potential communications demands. How many partners are there with whom you are currently working? How heavy is your typical document exchange? If you want to use EDI efficiently, it is crucial to get answers to these questions, which make your business capable of growing.

Document processing types – Purchasing, logistics, and accounting activities are the three main categories of transactions for which EDI is typically employed. Your system integration requirements will determine your EDI solution.

Management tools for IT – EDI management must be considered if you want to ensure smooth operations. EDI solutions can help you streamline your workforce solutions. You can outsource your EDI programming and support if you don’t have an internal IT workforce.

Prerequisites for services – Whether your company need to be accessible more or less always, or you actively distribute and take orders during specific operating hours. Your EDI solution must be able to meet the demand if your partners need continuous information transfer capabilities.

Partner necessities – Utilizing EDI protocols acceptable to your business partners is crucial. However, it’s crucial to thoroughly analyze both your current and potential future relationships with your trading partners. Are the partners big or small businesses? Are you satisfied with your existing partnership, or do you foresee a fall in business?

Early consideration of these elements enables you to select the EDI system that offers excellent flexibility and return on investment. It allows you to move with the least amount of disruption possible.


You can consider the above-given factors to select the right EDI software that ensures flexibility and higher ROI. Additionally, you can avoid downtime during transitions if you consider these essential elements. Trigent offers cloud-based, fully managed 24×7 EDI services that span the entire process – EDI onboarding to EDI coordination, translation to mapping, and incident resolution. With their flexible and integrated services, businesses of any size can seamlessly connect and collaborate with any trading partner and achieve new business connectivity and performance levels.