Why retail businesses are changing their approach to electronic data interchange

Retail19 Jan 2023

Sponsored by ecosio

Philipp Liegl - Co-founder, ecosio

Electronic data interchange (EDI) is essential in modern retail. Without it shelves would be empty and customers and suppliers would struggle to exchange orders, invoices and other crucial documents.

However, as EDI is constantly evolving, maintaining a successful EDI solution isn’t easy. Many retailers today are struggling to integrate EDI with old IT infrastructures and finding it hard to adapt to new processes. Likewise, for retail suppliers, coping with complex customer EDI requirements and e-invoicing regulations is proving increasingly challenging.

Why are retail EDI systems underperforming?

Generally, there are two main reasons.

The first is outdated technology. Historically grown solutions offer poor data visibility and don’t allow for relevant business departments to access data directly. What’s more, many EDI systems require in-house teams to juggle multiple point-to-point connections, which leads to more errors and less flexibility.

The second reason retail EDI solutions underperform is insufficient internal resources and EDI know-how. While EDI isn’t new, it is technical and requires a lot of work, both during initial setup and throughout ongoing operation. Unfortunately, this is often underestimated by retail businesses, and EDI is left to teams that lack the time, manpower or experience to unlock EDI’s full potential.

Why is eliminating retail EDI inefficiencies important?

In addition to causing frustration for internal teams, EDI issues also directly impact revenue and growth potential. For example, EDI errors can lead to delayed payments, damaged business relationships, fines and quality point reductions. Meanwhile, insufficient internal EDI resources and poor data visibility will ultimately result in loss of business.

Why more retail businesses are opting for an EDI-as-a-service solution

Until recently, the two main EDI options available to retail businesses were local EDI converters and platform-as-a-service (PaaS) EDI solutions. Although different, both require substantial internal effort, from onboarding suppliers to monitoring ongoing EDI traffic. As a result, it’s difficult for businesses lacking internal EDI resources to achieve an optimal solution with either of these approaches.

In contrast, with an EDI-as-a-service solution the EDI provider handles all EDI tasks, leaving internal teams free to focus on what they do best while enabling retail businesses to enjoy all the benefits of successful, futureproof EDI.

It’s therefore no surprise that more and more retail businesses are turning to EDI as a Service. For most retailers and retail suppliers that want to experience reliable, hassle-free EDI, an EDI-as-a-service approach represents the only sensible solution.

Why do retail companies continue with substandard EDI solutions?

There are two main reasons: fear of changing a running system and a lack of awareness of what a modern EDI solution can offer.

For in-house EDI teams, the mantra is typically “if it ain’t broke, don’t fix it”. However, retail businesses may not realise just how inefficient their current system is.

For retail businesses that take the time to explore alternative solutions the rewards can be huge. Importantly, too, for those that opt to move to an EDI-as-a-service model, there’s no need to worry about migration disrupting ongoing processes.

ecosio’s unique EDI-as-a-service solution is the first of its kind and is characterised by outstanding usability, seamless ERP integration and unparalleled customer support. By combining intelligent technologies and excellent service, ecosio accelerates B2B business processes and enables companies to realise all the benefits of automated message exchange with minimal effort.

Contact us today at edi@ecosio.com to find out how EDI-as-a-service could save you time and money, reduce your risk and boost your competitive advantage.