The Cost of EDI
The cost of EDI implementations will be impacted by the approach you take: In-house or working with a third-party EDI provider.
Understanding EDI pricing models and implementation costs
The cost of EDI (Electronic Data Interchange) varies widely depending on the model your organization chooses. Below are three common approaches to EDI pricing, each with different levels of investment, control, and internal resource requirements.
- Option 1: Building your own in-house EDI system
For companies that want maximum control and have strong internal IT resources.
- Option 2: Using a Value-Added Network (VAN) with in-house teams
Combines third-party infrastructure with internal integration and support.
- Option 3: Fully managed EDI services
Outsource everything from onboarding to maintenance for simplicity and scale.
Option 1: Building your own in-house EDI system
For large enterprises with extensive IT capabilities, building a fully in-house EDI system offers maximum control—but also the highest EDI implementation cost.
Requirements:
- EDI software and communication protocols
- Skilled personnel for development, mapping, integration, and maintenance
- Long-term investment in upgrades and support
Challenges:
- High upfront and ongoing costs
- Complex partner onboarding and support
- Greater risk and time to deploy
Best for:
- Organizations with very specific compliance, customization, or control needs.
Option 2: Using a VAN with in-house teams
With this option, companies work with a third-party EDI provider to implement a cloud-based Value-Added Network (VAN) to handle document transport and network infrastructure, while internal teams remain responsible for integration, mapping, and trading partner support. While this model lowers EDI implementation costs compared to a DIY approach, both options 1 and 2 are more susceptible to EDI fees due to non-compliance, unless your in-house team is able to consistently keep up with evolving regulations.
What’s included:
- Secure document exchange over a shared VAN
- Standard tools for connecting trading partners
- Subscription pricing based on data volume or number of transactions
Considerations:
- Some VANs charge based on minimum record lengths, potentially inflating the cost of EDI for small transactions
- You must allocate internal resources for mapping, troubleshooting, and support
Best for:
- Companies that want to maintain partial control but avoid building full infrastructure
Option 3: Fully managed EDI services
For organizations looking to outsource the heavy lifting, managed EDI services or B2B managed services from a third-party EDI provider are the most hands-off and scalable option. This approach is ideal for companies with limited internal IT resources or those seeking access to outsourced expertise.
What’s included:
- End-to-end management of EDI infrastructure and partner onboarding
- Mapping, translation, and integration services
- 24/7 monitoring and support
- Continuous compliance updates
EDI pricing models are typically based on:
- Monthly or annual subscriptions
- Volume-based tiers (documents or kilo-characters transmitted)
Benefits:
- Minimal internal resource requirements
- Predictable costs
- Scalable architecture and access to EDI experts
Choosing the right EDI cost model for your business
Each of these EDI options involves different levels of cost, complexity, and control. Most businesses find the right balance between cost-efficiency and operational capability with option 2 or option 3 to avoid the overhead of in-house systems.
Little surprise then that most organizations have chosen instead to work with some form of third-party provider who can supply the EDI infrastructure without their having to make that initial investment. This can be particularly important for small- and medium-size businesses that simply do not have the people or cannot find the money for this level of investment within their company.