5 Primary Challenges of Implementing EDI

Feb 27, 2020 8:14:08 AM

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EDI is a one-stop solution for most of the supply chain management challenges. It not only maximizes efficiency but also minimizes manual errors and transnational time. In a world where the amount of data is growing at a rate of knots, EDI helps in streamlining the supply chain management cycle seamlessly. However, the same data growth could be a major challenge in implementing EDI.

As the supply chain transactions of modern businesses get more complex, the challenges of working with EDI are also steep.

Here are a few common EDI challenges.

Scaling EDI

Despite the standard protocols of EDI, the document types and business rules differ from one trading partner to another. Introducing a new trading partner with a distinct transaction set to the system can be a difficult task. So, you need to scale the scope of your EDI judiciously to handle a diverse set of data rules with multiple EDI protocols.

Bad Data

Data inconsistencies can cause inconvenience in EDI operations. Many studies show that bad data is the leading problem that affects B2B business transactions. Incorrect manual data entries such as duplicate orders, discrepancies in prices, or other purchase-related issues make for a high percentage of bad data issues of EDI.

Speed Issues

Gone are the days when getting process transmissions once a day was enough, with the evolving technology, customers today expect a shorter wait period. Though once a day transmission is a definite step up from the conventional laid-back pace of the EDI process, it may no longer add value to the current speed of commerce. Real-time document delivery is the need of the hour, and you need to start taking steps to get there.

Transparency

Ensuring visibility and transparency at every level of the supply chain process can be a difficult feat to manage. As the supply chain processes get more complex, the degree of difficulty will only increase. Transparency has become even more critical in this era when businesses are shifting to more direct communication channels with consumers and trading partners. Setting up robust ways to maintain transparency between the partners in EDI protocols can be an optimum way forward to master supply chain visibility.

Interoperability

Though EDI has been around for over a couple of decades now, there are still many businesses that have not embraced this technology. Doing business with trading partners who have not upgraded to EDI can be quiet challenging.

The above challenges can be stumbling blocks in the process of EDI implementation. However, there are smart ways to overcome these issues to ensure smooth EDI implementation.

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