In so many ways your business is reliant on an EDI system to ensure customer satisfaction, maintain compliance and a successful flow of information throughout the supply chain. Your EDI system must support the functions that are critical to your business while being adaptable, easy to use, and allow for future growth. If your company can identify with any of the issues described below, then it may be time to consider replacing your legacy EDI system.
High Operating Costs
It’s getting very expensive to operate, especially if your EDI is no longer supported by the vendor. If you’re on maintenance only, it’s probably difficult to modify specifications when needed. The maintenance contract itself might be limiting, making it challenging to modify or drop a trading partner that you are no longer doing business with. Many aging EDI systems also have dramatic and unpredictable price increases.
It’s been neglected so you find it slow, hard to use, inflexible and that it simply cannot meet your changing requirements. Perhaps you are unable to test new customer EDI communications, have to create false invoices within your ERP system or are unable to integrate with your ERP system altogether. Worst of all, when you absolutely must request assistance or changes in functionality, you’re directed to an off-shore technical group who is not familiar with you, your business or your industry.
It’s so ancient that the provider who wrote the original software is no longer in business. This means that as technology evolves and industry standards change, your system doesn’t evolve with it. You’re left without access to new software releases and patches to your existing version. While your competitors are utilizing the latest enhancements to their EDI service to improve productivity, you’re still looking at the same stale, old, green screen user-interface.
In so many ways your business is reliant on your EDI system to ensure customer satisfaction and a successful flow of information throughout the supply chain. Adding or changing software into existing business processes can be overwhelming. However, when determining if your business is ready to upgrade to a new EDI solution, be sure to consider the total cost of ownership of your current system—and not just the cost of the software, maintenance and support, but the total cost to keep the legacy system going with manual work arounds and reporting to meet customer requirements. Most often, it is cheaper in the long run to replace and upgrade to a new EDI system.
Written by Radley Corporation