Managed Versus Full-Service EDI

In the modern business world, efficient communication between companies is crucial. A common way to streamline this communication is through Electronic Data Interchange (EDI). EDI allows companies to exchange standard business documents, such as purchase orders and invoices, electronically. When a company decides to implement EDI, however, it faces an important choice: do they choose Managed EDI or Full-Service EDI? In this blog, we explore the differences as well as the benefits of both options.

What is Managed EDI?

Managed EDI is a model where an external service provider is responsible for managing some of your EDI activities. This means you don’t have to do everything yourself, but still retain some involvement. Support from the service provider may include:

• Configuration and Settings: Assistance with initial setup and configuration of the EDI system, tailored to your business processes.
• Monitoring and maintenance: Active monitoring of EDI transactions, with support for any disruptions or errors.
• Support and updates: Technical support and regular updates to keep the system secure and current.

What is Full-Service EDI?

Full-Service EDI goes one step further than Managed EDI. In this approach, an external service provider takes full responsibility for all your EDI activities. This means you are completely unburdened, from technology to communication with trading partners. A Full-Service EDI solution consists of seven interrelated components that ensure smooth, secure and efficient data exchange.

1. Technology

Technology is the foundation of any Full-Service EDI solution. This includes the software, hardware and infrastructure required to process EDI transactions. Thanks to advanced systems, you benefit from:

• Reliability: Stable performance and minimal downtime.
• Scalability: Grows effortlessly with your business and number of trading partners.
• Security: Strong security measures to protect sensitive data.

2. Trade partner expertise

A successful EDI implementation depends on effective management of your trading partners. Full-service providers offer in-depth expertise in this area, including:

• Partner onboarding: Connecting new trading partners quickly and efficiently.
• Complaince: Ensuring that all EDI messages meet the specific requirements and standards of each trading partner.

3. Design and configuration

In addition, designing and configuring the solution based on a company’s specific needs is an essential part of Full-Service EDI. This includes:

• Customization: Customize EDI workflows and processes to integrate with your existing systems.
• Optimization: Identify the most efficient ways to send and receive data.

4. Trading partner communication

Communication with trading partners is essential to the smooth operation of EDI. Full-Service EDI solutions provide:

• Automated Messages: Automate the sending and receiving of EDI messages to minimize human error.
• Real-time updates: Instant notifications and updates on the status of EDI transactions.

5. Testing and launching

Before your EDI solution goes live, thorough testing and a well-planned launch is essential. This includes:

• Test scenarios: Thorough testing to ensure that all EDI transactions are processed correctly and error-free.
• Go-live support: Live support to quickly resolve any issues.

6. Proactive monitoring and analysis

A key benefit of Full-Service EDI is the proactive monitoring and analysis of your EDI activities. This ensures:

• Real-time monitoring: Continuous monitoring allows any problems to be identified immediately and resolved quickly.
• Analysis and reporting: Regular reports and in-depth analysis provide valuable insight into the performance and optimization opportunities of your EDI environment.

7. Continued access to resources

Support continues even after implementation. Full-Service EDI service providers provide continued access to knowledge and resources so that your organization continues to perform optimally. This includes:

• Customer support: 24/7 support for questions, incidents or technical problems.
• Training and education: Regular training and updates to keep your team familiar with the latest EDI developments and best practices.

Comparison of Managed and Full-Service EDI

Now that it’s clear what Managed and Full-Service EDI mean, we’ll look at the key differences between the two options. We compare cost, control and flexibility, and level of support and expertise – so you can determine which approach best suits your organization’s needs.

Costs

Managed EDI can seem more economical at first glance, because you only pay for specific services when needed. Full-Service EDI requires a higher investment, but in return you get a total solution with proactive support, less risk of error and more time savings – which often translates into higher efficiency and lower operating costs in the long run.

Control and Flexibility

Managed EDI offers more direct control by outsourcing only parts of your EDI processes. With Full-Service EDI, an experienced partner takes the entire process off your hands. This means less worry, less internal workload and more space to focus on your core business – while relying on a reliable and flexible EDI solution.

Support and expertise

Managed EDI requires some in-house knowledge, as you remain responsible for certain processes yourself. Full-Service EDI, on the other hand, offers continuous support from specialists, allowing you to benefit from extensive expertise without having to have it in-house. This is ideal for companies that want to be unburdened and assured of professional handling.

What fits your business?

Whether you choose Managed or Full-Service EDI, the most important thing is to choose a solution that fits the scale, complexity and requirements of your business. At SPS Commerce, we like to think with you to find the best-fit approach. With our advanced EDI solutions, we help your business operate more efficiently and grow further. If you would like more information, please contact us.

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Majke Zoethout

Marketing Specialist at SPS Commerce

Majke is a Marketing Specialist at SPS Commerce, responsible for marketing strategies for the Benelux region.

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