Finding the Right EDI Solution

By Marc Kalman, eZCom Software Inc.

April 1, 2004 - Whether you are a seasoned apparel vendor or new to the supply chain, odds are that you are not positive about the concept of electronic data interchange (EDI). However, if you want to sell to large retailers, you have to support it.

Part of the disenchantment stems from purchasers not properly researching solutions. Rather, they scramble around at the last minute to obtain the quickest and cheapest EDI solution they can find, based on potential retail business wherein EDI is required. Too often, this causes vendors to use applications that are not right for their needs. However, investing a little time into researching the proper EDI application can prove to offer a positive ROI.

What should I as a vendor be aware of?

A common first question is, "How much does EDI cost?" There are several applications available that are reasonably priced and more or less net out the same. That stated, there are more important issues than price to consider, such as will you get the support and training you need and will you run into compliance issues causing chargeback penalties? In some cases, the lowest price may lead you to little or no support (since proper support personnel cannot be afforded with rock bottom pricing). Additionally, an application that offers great pricing but causes thousands of dollars in chargeback penalties may prove to be overly expensive.

Look for a solution that limits your exposure to the confusing technology of EDI. Remember that you are not in the EDI business; you are simply selling your product.

Part of your purchasing decision should be based on the volume of orders you plan to receive and the number of retailers with whom you plan to trade. Certain applications are perfect if you anticipate a smaller volume of orders. However, these same applications can have you sitting in front of your computer for days if you have any significant volume to process for multiple retailers on a regular basis. Other applications that offer more aggressive functionality can reduce your processing time from days to minutes.

Additional questions to consider

Before purchasing an EDI system, ask yourself these questions:
* How intuitive and user-friendly is the interface? (Request a demo.)
* Will the EDI solution integrate with accounting systems?
* Does the application prevent compliance issues?
* Does the application offer batch processing or do you have to process one order at a time?
* Will you have to hire someone or can you run it yourself?
* Is the application Web-based or does it require installing software on your computer?
* Can you use the application with any retailer you need to? If so, how does it affect cost?


MARC KALMAN is co-founder and CEO of eZCom Software Inc. Prior to starting at eZCom, he served as director of information technologies at a medium sized New York-based apparel supplier.