One of the biggest decisions from a business standpoint is choosing between purchasing software for an in-house EDI implementation as opposed to going with an outsourced EDI service bureau. Below, we look at some of the benefits and drawbacks of both options:
Outsource
Benefits
One of the immediate benefits is the cost savings from identifying and eliminating bad business practices.
Access to the latest technology. When you use a SaaS model, the latest technology is available immediately.
There is a focus on the customer relationship and business rather than the technology itself
Drawbacks
There is an implementation fee
You will need to pay for any transaction, including changing information.
There is no way to know in advance how much time to purchase for mapping business functions and data.
No way to expedite the queue for transactions.
In-House
Benefits
Lower long-term costs as you only pay upfront and do not pay per transaction.
A much greater control of information, as data is not sent to a third party.
Greater business partner satisfaction
Drawbacks
The high initial capital expense for the software and any work to connect existing software.
Requires personnel with knowledge of EDI to manage the in-house systems and troubleshoot issues.
Regular maintenance costs and upgrades will incur separate costs.
