Comparing the Top Electronic Data Interchange (EDI) Solutions

EDI is the backbone of supply chain communication, automating everything from purchase orders to shipping notices and inventory updates. But with so many EDI providers offering similar features, choosing the right platform for your business can feel overwhelming.

Whether you’re looking for a self-managed solution or a fully outsourced solution, this guide compares some of the top EDI vendors to help you make an informed decision based on your business needs, integration goals and growth plans.

EDI Vendor Overview

Why the Right EDI Solution Matters

IBM research estimates that 85% of supply chain transactions are managed through EDI, making it a must for any business that’s serious about supplying products to retailers and online marketplaces. The pervasiveness of EDI isn’t expected to shrink anytime soon, either: Innovations in AI technology are only adding fuel to the fire, with the current $2.1 billion EDI market expected to grow to $5.3 billion by 2032.

Types of EDI Solutions

Self-Managed vs. Fully-Managed Services

Does your business have the resources and expertise to manage an EDI solution in-house, or will you need someone to manage the solution for you?

• Self-Managed: Self-managed EDI solutions are designed for organizations that have in-house capabilities to self-implement, manage and run the EDI infrastructure themselves.
• Fully-Managed: Fully-managed EDI solutions provide end-to-end support from the start, including implementation, mapping and setting up trading partner connections.
• Blended: These self-managed EDI solutions offer support as needed, such as helping with initial implementation or setting up new connections with back-end systems.

On-Premise vs. Cloud-Based Deployment

There are two ways EDI can be deployed — on-premise or in the cloud. Many modern EDI solutions are hybrid, allowing users to choose between these two deployment methods: If your current EDI deployment is on-prem and you decide to migrate to the cloud later on, a vendor with hybrid EDI capabilities can make the transition much easier.

• On-Premise: Software that is installed and maintained on a physical server (also referred to as “on-site” or “point-to-point” EDI software).
• Cloud-Based: Software hosted and managed by a third-party provider that allows users to access data over the internet.
• Hybrid: EDI solutions that support both on-premise and cloud-based deployment.

Per-Transaction vs. Per-Trading-Partner Pricing

Traditionally, EDI providers have used transaction-based pricing models, charging a fee for each document exchanged. But as the average volume of transactions increased, some EDI vendors have switched to partner-based pricing models that allow customers to send and receive an unlimited number of transactions for a flat fee.

• Per-Transaction Model: Each document exchange with trading partners is charged individually, causing costs to fluctuate as EDI transaction volume fluctuates.
• Per-Trading-Partner Model: A fixed fee is associated with each trading partner; these fees stay the same, regardless of that period’s transaction volume.

What to Look for in an EDI Vendor

G2, one of the leading software review platforms, organizes common EDI features into five categories: functionality, management, integration, security and support. Depending on what features are most important for your business, these questions can help you assess whether a particular solution meets your needs:

Vendor Comparison: 5 EDI Providers for Mid-Market & Enterprise Use Cases