Consolidate EDI service providers to maximize efficiency without increasing risk

Struggling with multiple EDI service providers? You’re not alone. Many businesses face the challenge of managing various Electronic Data Interchange (EDI) systems, leading to rising complexity, higher costs, and inefficiencies. Yet, despite these hurdles, many hesitate to consolidate vendors. The concern? Putting all their eggs in one basket with a centralized EDI solution. Relying on a single provider raises the fear that if that partner fails, it could significantly disrupt operations. The good news is that with the right approach, it’s possible to unlock the benefits of EDI consolidation while effectively mitigating the risks. Read on to learn how.

The Challenges of Scaling in a Global Supply Chain

EDI vendor consolidation applies across the spectrum of EDI service models—from traditional Value-Added-Network (VAN) providers to fully managed services and everything in between. Whether you’re using basic data transport services or outsourcing complete B2B integration, the challenges of fragmented systems and disconnected operations remain the same.

Implementing several EDI service providers might seem like the cost of doing business. But in reality, it creates fragmented systems, redundant processes, and unnecessary overhead. Each provider comes with its own:

• Document types and data formats
• Technology standards and protocols
• Contracts, pricing models, and SLAs
• Support teams and service requirements

Managing this patchwork of solutions leads to decreased visibility, poor scalability, and inconsistent customer service. Worse, you miss out on volume-based pricing and streamlined integrations that a single-provider model offers.