Grocery EDI: How it Works in Grocery Industry and what are Grocery EDI Transactions?

Electronic Data Interchange (EDI) is a vital resource for the daily operations of businesses, facilitating communication and data amongst trading partners in an automated fashion.

But by far a more common question is: What does the cost of implementing EDI look like? It is not a straight answer, obviously the cost to implement can vary based on many factors such as:

• The size and nature of your business
• The trading partners that you will connect with
• The type of EDI solution you choose
• What you require in terms of support

In this blog, we will go into the reasons that affect how much EDI implementation will cost; providing you with some insight in to the financials.

Key Cost Components

Software or Service Provider Costs: One of the major costs involved in EDI implementation is software or service provider you decide to go with. There are some providers that provide subscription-based packages with monthly charges, while others may charge you a one-time license. The fee may also be determined by the packages with features and functionalities offered.

Integration and Setup: Most often, when implementing EDI you have to integrate the system into your business processes and already existing software. The integration process may include development, testing and customization to enable the interfaces between your internal systems and from your trading partners systems.

Transaction Volume: The number of transactions per year that regulated by your EDI providers. This cost may be an individual measure of, for example: per document (as purchase orders, invoices or shipment notices) or a per-volume measurement of Data exchange.

Data Mapping and Translation: EDI works by translating / mapping the data format of the systems you use to communicate with your trading partners. The effort in doing this is often done through data mapping and translating services that come at a price with your total value.

Other Cost Considerations

Compliant with EDI Standards: You may require some of your trading partners to be compliant with EDI standards; e.g., EDIFACT or ANSI X12. Compliance will very likely increase the cost, especially if some customisation needs carrying out.

Training and Support: Providing training for your staff group to efficiently use the EDI system and enabling ongoing technical support (e.g., 24×7) can have an impact in the costs.

Maintenance and Upgrades: Over time, your EDI system will require updates and maintenance to accommodate changing business needs, new partners, and technology updates. Factoring in these costs is essential for a sustainable implementation.

Security and Compliance: Security of data, compliance with industry regulations, paramount The implementation will probably require that you make security investments like encryption, firewalls etc.

Scalability: your business potentially expansion and more transactions / trading partners Scalability, as your EDI implementation grows, you may face the need for costs related, a bit of a red alert by now.

EDI implementation is not an inexpensive means, it is affected by many things and the one thing to keep in mind. Regardless of if you're a small business with budget constraints in mind or an enterprise with low end requirements, knowing these cost parameters and factors are key and necessary for the implementation to be sustainable. Get an accurate quote by contacting potential EDI solution providers and share what your business really needs.

Why Choose Infocon Systems as Your EDI Provider?

Transparent EDI pricing models

By choosing Infocon Systems, you can be confident that you are getting the most out of your EDI investment and reducing your costs as much as possible. Infocon Systems offers a flat-rate pricing for their EDI services, which means that you will know exactly how much you will pay each month. This can help you budget for your EDI costs and avoid surprises. Infocon Systems provides 24/7 support for their EDI customers. You can always get help if you need it, even in the middle of the night you will avoid downtime and lost productivity.

To learn more about how Infocon Systems can take care of your EDI needs for your business, please don’t hesitate to give us a call at +1 888-339-0722 or email sales@infoconn.com. We’d love to hear from you.