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Does EDI Outsourcing Really Save Money?

Topics: EDI considerations, EDI provider

Crossroads sign with two arrows, office building - inhouse, or outsourcing to demonstrate EDI outsourcingWhether your business is looking to move away from your current in-house EDI solution or move on from a managed EDI provider whose services and solutions didn’t grow with your business, you probably have one question on your mind:

Does outsourcing EDI really save money?

Maybe you’ve heard horror stories about managed EDI service providers whose services became cumbersome burdens for their clients to bear. Maybe you’ve lived through one. Maybe you’re wondering – even if EDI outsourcing can save your business money in the short term, will it really save money in the long run?

The answer is yes, and here’s how.

Outsourced EDI saves you money, time, and effort by cutting down on implementation costs and your need for internal EDI resources. A great managed EDI service provider does not only that, but also empowers your business to continue expanding your trading partner network and keeps up with your growth to provide a continued ROI well into the future.

EDI Outsourcing vs. On-Premise: Costs vs. Benefits

If your organization does all its EDI in-house, conventional wisdom says that you already know one benefit of keeping your EDI in-house: chiefly, your entire EDI process is entirely under your control.

On-Premise EDI: Pros and Cons

You have your own EDI expertise within your organization, and these experts intimately know the shape and hierarchy of your organization, how data flows within your organization and to and from your trading partners, how your business functions, and what your business’s goals and vision are.

Conversely, having your entire EDI process under your control means you’re responsible for all of the burdens of in-house EDI as well. That includes investing in staff with the expertise to support your EDI solution, ensuring your IT staff can maintain your organization’s EDI processes, and ensuring that a degree of your organization’s workforce is invested into monitoring your EDI solutions and processes.

Outsourced EDI: Pros and Cons

Moving onto EDI outsourcing, the biggest benefit is that you don’t have to worry about technology, maintaining on-staff EDI expertise, or using your own workforce to monitor and maintain your EDI solution. Outsourced EDI can reduce IT costs for your company by 30% or more!

Third-party EDI outsourcing firms can also lift the burden of taking care of your trading partners’ special requirements, so your workers can spend more time growing the value of your business and less time scrambling around to deal with all the ins and outs of EDI.

The costs, on the other hand—first and foremost, putting control of your EDI into a third party’s hands puts your reputation at the mercy of the provider, and if you don’t like the service you’re getting, changing providers can be cumbersome and expensive. Outsourcing EDI means you depend on your managed service provider to handle any issues that arise, potentially affecting your business’ responsiveness.

How much the disadvantages of outsourced EDI will cost you—not just monetarily, but in terms of your business’s ability to grow—depend on the quality of the managed EDI service provider you select. So choose carefully—because the right outsourced EDI solution will absolutely save you money in the short and long term.

How can EDI outsourcing save you money?

Implementing your own EDI solution, or moving on from a previous managed service provider whose services didn’t grow with your business, can be costly and time-consuming.

At first glance, it might seem obvious how EDI outsourcing saves you money. All the workforce, labor time, and hardware costs put toward in-house EDI in the form of infrastructure (server, EDI software), in-house support staff, and the upfront costs of hiring in-house EDI experts to develop your integrations are all significantly reduced or eliminated in exchange for the cost of hiring a managed EDI service provider.

But wait, you might say. It can’t be that simple. There has to be a catch.

As you’ve read above, generally speaking, there are drawbacks to managed EDI services. Some managed services may end up costing you far more than they initially appeared to on paper if they don’t help you invest in EDI as a living and growing solution for your business.

A truly excellent outsourced EDI solution avoids these drawbacks. For starters, they certainly should be transparent about billing! EDI outsourcing saves you money and makes you more money as time goes by. A great managed EDI service provider puts its extensive EDI expertise at your fingertips, enabling you to invest in EDI smartly and strategically to maximize your ROI.

Outsource EDI to the right provider, and it really is that simple.

When EDI Outsourcing is Right for You

If your business finds your own in-house EDI solution to be cumbersome or slow or it takes too long to react to new EDI requests, outsourced EDI may be right for you.

As you’ve read, EDI outsourcing has its advantages and potential drawbacks. Managed EDI services take the weight off your organization’s shoulders, but they might not provide a solution that fits the shape of your business and your overall vision and goals.

At GraceBlood, our mission is to maximize the impact of your EDI investment so your business can save money and grow. We tailor every EDI solution we design to meet each client’s unique situation and bring you the best of both worlds—the flexibility and responsiveness of an in-house solution that grows with your business, along with the ease and cost-effectiveness of an outsourced EDI solution that takes all the hard work off your plate and helps you get a better ROI for your business.

Outsourced EDI saves time and money, reducing the need for expensive internal resources and implementation costs. Contact us and find out how we can start saving you money with outsourced EDI:

FAQs

Does EDI outsourcing really save money?

Yes, EDI outsourcing saves money by cutting down on implementation costs and your need for internal EDI resources. A great managed EDI service provider will also empower your business to continue expanding your trading partner network and keep up with your growth to provide a continued return on investment.

What are the advantages and potential drawbacks of using an outsourced EDI solution?

The advantages of using an outsourced EDI solution include reducing IT costs, not having to worry about technology, having an expert team managing your EDI processes, and saving time and effort. However, some drawbacks include having to put control of your EDI into a third party’s hands, not having your own EDI expertise within the organization, and depending on the managed service provider to handle any issues that arise.

When is EDI outsourcing the right choice for a business?

If your business finds its own in-house EDI solution to be cumbersome or slow or it takes too long to react to new EDI requests, then EDI outsourcing may be the right choice. It is important to find the right managed EDI service provider who fits your unique situation and brings you the best of both worlds–the flexibility and responsiveness of an in-house solution that grows with your business, along with the ease and cost-effectiveness of an outsourced EDI solution.

How can I start saving money with outsourced EDI?

Contact a great managed EDI service provider who can tailor an EDI solution to meet your unique situation, maximize the impact of your EDI investment, and help you get a better return on investment.

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