As 2024 comes to a close, many companies are looking for ways to improve efficiency, cut costs, and prepare for future growth. Evaluating Electronic Data Interchange (EDI) systems and processes should be essential to this continuous improvement effort. Uncovering hidden EDI inefficiencies affecting your operations can unlock opportunities to improve workflows and strengthen trading partner relationships.

To help you get started, here’s a practical guide to reviewing your EDI processes, complete with a checklist to determine whether it’s time to upgrade your EDI setup or consider a new provider.

Why the End of the Year Is the Perfect Time for an EDI Check-Up

  1. Budget Planning for Next Year
    Reviewing your EDI setup now allows you to factor in any necessary upgrades or adjustments into next year’s budget. You can strategically plan financial resources by identifying potential savings or areas requiring investment.
  2. Seasonal Slowdowns
    Many industries experience slower operations in December, making it easier to review processes without disrupting daily business activities. Use this time to analyze data, consult with your team, and identify any issues.
  3. New Year, New Goals
    With many businesses setting operational goals for the new year, ensuring your EDI system aligns with these objectives is essential. Whether your goal is expanding your trading partner network, increasing automation, or reducing errors, now is the time to prepare.
  4. Stay Ahead of Compliance Changes
    The end of the year often brings updates to industry regulations, trading partner requirements, or tax reporting standards. A comprehensive EDI review ensures your system is compliant and ready for any changes.

Key Areas to Review in Your EDI Check-Up

  1. Integration Performance
    • How seamlessly does your EDI integrate with your ERP, CRM, or other systems?
    • Are there delays or inefficiencies in processing transactions?
    • Evaluate whether your system is keeping up with the increasing complexity of your operations.
  2. Trading Partner Satisfaction
    • Are your trading partners experiencing data accuracy, communication, or compliance issues?
    • Have you received complaints or noticed delays in transactions?
    • Check if your EDI provider offers tools like real-time notifications to address partner concerns promptly.
  3. Error Rates
    • Analyze the frequency and types of errors in your EDI transactions.
    • Are incorrect invoices, missing acknowledgments, or data discrepancies a recurring issue?
    • High error rates may indicate the need for system upgrades or better support.
  4. Overall Costs
    • Is your EDI provider delivering value for the cost?
    • Review the hard costs (software, licensing fees) and hidden costs (manual corrections, downtime).
    • Compare your current costs with potential savings from outsourcing to a managed EDI provider.

End-of-Year EDI Checklist

Use this checklist to determine if your EDI system needs a tune-up or a complete overhaul:

  • Performance

☐ Transactions process smoothly without delays.

☐ Integration with ERP, CRM, or other systems is seamless.

☐ Scalability supports growing transaction volumes and new trading partners.

  • Trading Partner Experience

☐ Partners receive timely acknowledgments and accurate data.

☐ No frequent complaints about data quality or missed transactions.

☐ Trading partner onboarding is quick and straightforward.

  • Error Rates and Resolution

☐ Error rates are low and within acceptable limits.

☐ Issues are resolved promptly with minimal manual intervention.

☐ Notifications and alerts make it easy to track and address problems.

  • Compliance and Security

☐ All transactions comply with industry and trading partner standards.

☐ Data security measures are robust and up to date.

☐ System is prepared for upcoming compliance changes in the new year.

  • Cost Efficiency

☐ Current EDI setup is cost-effective relative to its benefits.

☐ No hidden costs from error correction, downtime, or slow support.

☐ Savings opportunities exist by outsourcing or upgrading.


When to Upgrade or Switch EDI Providers

If your system falls short in any of the above areas, it might be time to consider an upgrade or switch providers. Look for providers that offer:

  • Comprehensive Managed EDI Services
    Outsourcing EDI management can reduce costs and improve efficiency.
  • Advanced Notification Systems
    Real-time alerts for transaction errors or delays ensure quick resolutions.
  • Customizable Solutions
    Flexible services allow you to monitor specific data sets or integrate with unique ERP configurations.
  • Cost-Effective Pricing
    Many providers now offer flat monthly fees, waiving migration and implementation costs to save you money.

Start the New Year with Confidence

Evaluating your EDI system now will set you up for success in the new year. Whether it’s ensuring compliance, improving partner satisfaction, or reducing costs, a thorough end-of-year check-up ensures your operations are ready for whatever challenges and opportunities the new year brings.

Ready to assess your EDI system? Contact us to discuss how Promethean’s managed EDI services can streamline your processes, reduce errors, and save you money in the year ahead.