What is EDI?
EDI (Electronic Data Interchange) is the concept in which
buyers and sellers exchange business critical documents such
as Purchase Orders and Invoices electronically.
What is a Trading Partner?
A Trading Partner refers to a company that buys your product
or service. In essence it is another means of referring to
your Customers.
Do I really need EDI and e-commerce?
If you are like most suppliers, then the answer to this question
will depend on the relationship you have with your Trading
Partners. Generally speaking, when your Partners request that
you start trading documents via EDI, it is more of a requirement
than a request, so the answer will be “yes…you
need EDI”. You should also consider that even if your
Trading Partners are not requiring EDI of you, it has been
proven that buyers will opt to purchase products from companies
that are EDI compliant. Therefore, participating with an EDI
or e-commerce program can potentially give you a competitive
advantage.
What is a Transaction Set?
A Transaction Set refers to the types of documents that your
Trading Partners will send and receive to and from you. A
Purchase Order is one type of Transaction Set and an Invoice
is another type.
How will I know what Transaction Sets my Trading
Partners require?
Your Trading Partners’ e-commerce departments will provide
you with these requirements. You should note that each Partner
may require different Transactions. Should you choose eZCom
as your e-commerce solution, our team of experts will help
you with this entire process and make understanding the requirements
very easy for you. For a list of commonly used Transaction
Sets, you can view our List
of Document Types.
Is EDI Expensive?
EDI has been around for over a quarter of a century and was
originally used between large buyers and large suppliers.
This was because the initial costs to implement and support
the first EDI initiatives were extremely expensive. Even today,
implementing an in-house EDI or e-commerce system can still
be pricey. Startup fees can range from $10,000 to more than
$200,000. Depending on what size your company is and how much
of your business will be conducted via EDI, your annual operational
costs can exceed $100,000 between personnel and processing
fees. However, by using a web-based product such as that offered
by eZCom, you eliminate the need to purchase hardware and
software, and in most cases your current staff can easily
fit the job functions into their schedule.
Do I need to hire an E-commerce expert?
If you choose to purchase and implement an in-house system,
then you will need to employ at least one e-commerce expert.
If you choose to outsource or use a web-based application,
your current staff should be adequate in most cases.
I would like to use EDI, but I am afraid of Charge
back Penalties.
And you should be. Not properly implementing an EDI and e-commerce
initiative has resulted in charge backs that total more than
$50,000 annually for many suppliers. However, if you are careful
in choosing the right EDI solution, the application will assist
you in sending out EDI transactions correctly, and thus allow
you to have a pleasant and profitable EDI experience. For
more information on choosing an EDI solution, you may download
our white paper, Choosing
the Right EDI Software.
How can eZCom help me with EDI?
eZCom employs the best e-commerce experts in the industry.
Our management team has practical supply chain experience
working for companies just like yours… so we understand
exactly what you are going through. At eZCom we have developed
the easiest and most efficient application on the market today.
You will be able to meet all your EDI requirements without
ever having to get involved with the technical aspects of
EDI and e-commerce. We make it easy so you can stay focused
on what it is you do best: getting your orders, shipping your
products, and billing your customers. To better understand
how we have saved many suppliers countless amounts of time
and money, check out the Testimonials
of your peers.