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Decoding EDI Managed Services [+Top Solution For Businesses]

Girinath
January 17, 2025 |
EDI Managed Services

More and more B2B businesses today are moving towards EDI as it’s one of the best ways to streamline B2B connections. But when it comes to choosing the right EDI solution, a company needs to make an important decision, whether to choose a self-service EDI or EDI managed services. 

To decide what works best, it’s crucial to understand the differences, the level of support and expertise each offers, and how they integrate with your existing tech stack. Like everything, both options have their pros and cons, but one often stands out depending on your company’s needs. In this blog, we’ll break them down and help you figure out which might work best for you.  

But, before we get super technical, let’s start with the basics.

What Is EDI?

EDI, or Electronic Data Interchange, is basically the digital exchange of business documents like purchase orders, invoices, and shipping details between companies. It replaces manual, paper-based processes with automated ones, making them faster, more efficient, and less prone to errors.

With EDI integration, organizations in industries like manufacturing, distribution, and retail can share critical data seamlessly, ensuring smooth supply chain processes. To get an even better understanding, here is how it works:  

  • Your system (like an ERP or accounting software) generates a business document, such as a purchase order.
  • This document is then converted into a standardized EDI format, such as ANSI X12, EDIFACT, or TRADACOMS. This ensures that the data is structured and can be understood by your trading partner’s system.
  • The formatted document is transmitted to your trading partner using secure communication protocols like FTP, AS2, or EDI VAN (Value-Added Network). Think of this as the route or “highway” the data travels on. 
  • Your trading partner’s EDI system receives the document, translates it back into its own system’s format, and processes the information automatically.
  • Your partner may send back an acknowledgment (like an EDI 997 Functional Acknowledgement) to confirm receipt of the document. If it’s a two-way exchange, they might also send their response, like an invoice or shipping notice, in return.

Also read: How To Choose The Right EDI Service Provider [+ 6 Tools ]

Understanding EDI Managed Services

EDI managed services or fully-managed EDI services are terms used widely, but their meaning can vary between providers. Not all solutions labeled as “fully managed” may include everything you expect. That’s why it’s a good idea to take a closer look and clarify exactly what is included to ensure it aligns with your needs.

A true fully managed EDI service means the provider handles everything for you – from setting up the technical side, testing messages, and integrating with your existing systems to monitoring errors, resolving issues, and maintaining compliance. In short, you won’t have to worry about anything because the provider has it all covered.

But here’s the tip: before you pick a “managed” EDI provider, take a good look at what they’re offering. Some solutions might still require your internal team to pitch in here and there, so double-check to make sure it’s truly hands-off if that’s what you need.

Now, for businesses that need a little more control over their EDI operations, they can opt any one of these two:

Self-Service EDI Solutions

Self-service EDI solutions put most of the responsibility on you. Your internal team will be in charge of everything: setting up the system, testing, troubleshooting errors, and keeping things running smoothly.

While this gives you complete control, it can also come with its fair share of headaches. If you have a dedicated, experienced in-house team and you’re okay with managing the technical side, this might work. But it can quickly become overwhelming for businesses with limited resources or technical knowledge. 

A Combination of Both

Finally, there’s the hybrid approach: a mix of fully managed and self-service. This is a great option if you want flexibility and control but still need support for certain tasks. For example, your provider might handle the initial setup, integrations, and monitoring while leaving day-to-day tasks or troubleshooting to your team.

This way, you get the best of both worlds. It’s a middle ground that works well for businesses that need a balance between external support and internal management.

Why a Fully Managed EDI Solution is Better Than Self-Service

A fully managed solution often stands out as the smarter choice for most businesses, especially for manufacturers and distributors. Because it takes the burden of managing complex EDI processes off your shoulders, letting experts handle everything from start to finish. 

This is especially helpful if you don’t have an in-house team with technical expertise or the time to dedicate to EDI management. With a fully managed solution, you’re essentially getting a hassle-free setup that allows you to focus on what you do best: running your business.

Here’s why a fully managed EDI solution is better:

  • Implementation and Full Configuration of Your EDI Solution: From initial setup to full integration with your existing systems, a fully managed provider handles every technical aspect.
  • Seamless Onboarding of All Your Trading Partners: Your EDI provider takes care of bringing all your trading partners into the network, ensuring everyone is connected without hiccups.
  • Monitoring and Testing Before Handing Over: Managed solutions include thorough testing and monitoring to ensure everything works perfectly before you start using it.
  • Full Automation of Manual Tasks and Integration: You can save time and reduce errors by automating manual business processes and ensuring seamless integration with your tech stack.  
  • Expert Support When Necessary: Whether it’s troubleshooting, updates, or system improvements, a team of EDI experts is just a call away, so you don’t need to worry about technical challenges.   
  • Comparatively Cost-Efficient: While it might seem more expensive upfront, it saves costs in the long run by reducing downtime, errors, and the need for internal resources.
  • Requires Minimal to No Contribution from Your Side: You don’t need to spend time or effort managing EDI processes besides providing essential details.
  • Saves Time and Helps You Focus on More Important Things: With less time spent on managing EDI, you can focus on strategic goals and core business activities that drive growth.

Also read: EDI Integration with ERP Explained [+Types, Benefits & Challenges]

What to Consider Before Choosing EDI Managed Services

Choosing EDI managed services is like picking the right car. You don’t just go for the shiniest one; you want something reliable, fuel-efficient, and suited to your needs, right? 

So, to make a mindful choice, here are a few things to keep in mind so you don’t end up with something that looks good on paper but doesn’t quite work in real life.

What’s Included in the Service?

“Fully managed services” can mean different things to different service providers. That’s why it’s important to check if aspects like partner onboarding or testing are included in their managed service or if they expect you to handle them. Ask these questions to be sure:

  • Will the EDI partner handle the entire setup process, including mapping and automation?
  • Do they take care of trading partner onboarding, or is that partially your responsibility? 
  • How do they manage testing and validation of data exchanges before going live?
  • Will they be responsible for error resolution, if any? 
  • Do they provide automated error handling, or will your team need to intervene?
  • Are updates, such as compliance changes, automatically managed by them?
  • How much input or effort is expected from your in-house team during the process?

Getting clear answers to these questions will help you determine whether the service truly takes the load off your shoulders or leaves you juggling tasks.

Scalability

Your business isn’t going to stay the same size forever—fingers crossed, it’ll grow! Can the EDI provider handle your growth? Whether you add new partners or enter new markets, your solution should be ready to scale without any hassles.

Integration Capabilities

Your tech stack is like a puzzle, and the EDI solution is just one piece. It should fit in seamlessly with your ERP, CRM, or whatever systems you’re already using. Ask about compatibility and whether they support popular platforms like SAP, Oracle, or Microsoft Dynamics.

Support Availability

Things can go wrong. And when they do, you don’t want to be left hanging. Check if the provider offers round-the-clock support, or if you’ll be waiting until Monday morning to get help. Trust me, a responsive support team can be a lifesaver.

Cost vs. Value

Don’t just look at the price tag, look at what you’re getting for it. A cheaper option might seem like a win, but if it lacks crucial features or requires heavy involvement from your side, it might cost you more in the long run.

Data Security and Compliance

Your data is gold and keeping it safe is non-negotiable. Make sure the provider has strong security measures and complies with industry standards like GDPR or HIPAA, depending on your business.

Experience and Expertise

Choose a provider with a proven track record in your industry. If they’ve worked with businesses like yours, they’ll already know the ropes, which means fewer headaches for you.

Customization Options

No two businesses are exactly alike, and your EDI solution should reflect that. Can they tailor the service to your specific needs, or is it a one-size-fits-all deal?

Trial Period or Demo

If they offer a trial period or a demo, take it! It’s like a test-drive. you’ll get a feel for how it works and whether it’s the right fit for you.

At the end of the day, choosing an EDI managed service is a big decision, and it’s worth taking the time to weigh your options. Remember, it’s not just about what looks good on the surface, it’s about finding a solution that truly makes your life easier and helps your business thrive.

Also read: EDI vs APIs in B2B Supply Chain Integrations

Where Things Might Go Wrong With EDI Managed Services (And How To Avoid Them)

Even with the promise of convenience and efficiency, EDI managed services aren’t without their challenges. But don’t worry, most problems come with solutions and understanding them upfront can save you a lot of headaches down the road. 

1. Too Much In-House Involvement

One of the biggest letdowns is when a “fully managed service” still expects you to handle tasks like onboarding trading partners, monitoring transactions, or fixing errors. This defeats the purpose of outsourcing in the first place.

Solution: Before choosing a provider, clarify exactly what’s included. Ask if they’ll take care of everything from setup to monitoring and ensure you aren’t left holding the bag for critical tasks.

2. Support That’s Hard to Reach

Suppose a crucial transaction gets stuck, and your provider’s support team is nowhere to be found. Poor customer support can lead to delayed orders, strained relationships with your business partners, and even lost revenue.

Solution: Look for providers with 24/7 support and clear escalation procedures. Check reviews or speak to existing clients to ensure their support is responsive and proactive.

3. Rigid Solutions That Limit Flexibility

Some EDI systems might lock you into outdated protocols or make it expensive to add new features. This can become a major roadblock as your business grows or your needs evolve.

Solution: Choose a provider offering scalable solutions and flexible pricing. Make sure their core technology supports multiple data formats and communication protocols, so you’re not stuck even if things change. 

4. Hidden Costs

Many providers advertise affordable services, only to surprise you later with fees for additional features, extra trading partners, or custom configurations.

Solution: Always ask for a detailed breakdown of costs, including any potential extras. A transparent provider will happily walk you through their pricing structure.

5. Lack of Scalability

A system that works well for 10 trading partners might crumble under the pressure of 100. If your EDI solution isn’t designed to scale, you could face downtime, errors, and frustrated stakeholders.

Solution: Invest in a scalable EDI solution from the start, if you already have an EDI platform that supports limited scalability then maybe integrating it with other business systems will help. Ask the provider about their capacity to handle your future growth, not just your current needs. 

6. Compatibility Issues

If your EDI solution doesn’t play well with your existing tech stack, you’ll spend more time fixing errors than enjoying the benefits of automation.

Solution: Verify that the solution integrates seamlessly with your ERP, CRM, or other systems. Many providers offer custom integrations, don’t settle for less.

7. Lack of Transparency

Sometimes, businesses are left in the dark about how their EDI processes are being managed, leading to confusion or missed opportunities for improvement.

Solution: Choose a provider that offers real-time visibility into transactions and proactive updates about potential issues or improvements.

Top EDI Managed Service Provider For B2B businesses: DCKAP Integrator

With DCKAP Integrator, you don’t need additional software or vendor. If you already have existing EDI software, it can seamlessly integrate with your other business systems and with your business partner’s systems. But if you’re looking for a one-stop solution to manage your entire EDI operations, we’ve got you covered for that too. 

Here’s why this is a great tool to consider:

  • One of the best things about DCKAP Integrator is how it bridges the gap between your business and your trading partners. Whether it’s connecting with suppliers, manufacturers, or distributors, this tool ensures everyone is on the same page, no matter the system or format they’re using.
  • Onboarding trading partners can be a tedious process. But with DCKAP Integrator, it’s comparatively easier. They’ll handle the technical setup, testing, and everything in between, making it smooth and hassle-free for both parties.
  • DCKAP Integrator automates manual repetitive processes, saving time, reducing errors, and allowing your team to focus on what truly matters, growing your business.
  • From testing to regular monitoring, the platform doesn’t just stop at implementation. They keep an eye on your transactions and step in with expert support whenever needed.
  • DCKAP Integrator isn’t a one-size-fits-all solution. It’s designed with B2B businesses in mind, making it versatile enough to handle complexities while still being user-friendly and adaptable to specific EDI requirements. 

If you’re looking for a reliable, efficient, and truly managed EDI service provider, DCKAP Integrator checks all the boxes. Get in touch with our team to know more. 

FAQs

What is EDI integration?

EDI integration is the process of connecting EDI systems with other business systems like ERPs, CRMs, or inventory management tools. This ensures data flows seamlessly across the organization, automating tasks like order processing and invoicing on an ongoing basis, reducing manual errors and saving time.

Who are EDI consultants?

EDI consultants are EDI specialists who help businesses implement and manage their EDI solutions. They provide expertise in selecting the right service models, tools, and best practices tailored to meet trading partner requirements, ensuring smooth integration with existing systems while reducing additional costs and capital investment.

What is EDI outsourcing?

EDI outsourcing refers to hiring a third-party provider to handle all aspects of your EDI operations. This includes setup, configuration, maintenance, monitoring, and troubleshooting, ensuring reliable infrastructure and seamless connections with trading partners without the need for a dedicated in-house EDI department.

How does EDI benefit small businesses?

For small businesses, EDI reduces manual workload, saves on maintenance costs, and eliminates the need for significant capital investment in hardware. It provides access to reliable infrastructure and global reach, helping small businesses compete with larger enterprises.

What are the best practices for implementing EDI?

Some best practices include:

  • Selecting a service model that fits your business size and trading partner requirements.
  • Ensuring your team receives proper training on tools and processes.
  • Partnering with experienced EDI specialists or third-party providers.
  • Regularly monitoring and addressing exceptions in data exchange.
  • Continuously assessing and updating technical requirements.

Girinath

Girinath is a Senior Business Analyst with vast experience in Integrations of SaaS products across various platforms such as ERP, eCommerce, CRM, and other customer solutions. He also plays a role as a Solution Consultant showcasing the Product features to the prospects and providing solutions to the B2B customers based on their Business requirements. He acts as a liaison among the stakeholders and ensures the customers achieve the desired results. In his free time, he enjoys playing cricket, traveling to interesting places, taking part in adventure sports, and tour vlogging.

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