Choosing an EDI provider: should suppliers work with two EDI services?

As business grows, suppliers increase the number of partners, expand the geography of cooperation, and complicate the supply chain. As a result, the requirements for EDI services are also growing.

Should scalable suppliers work with multiple EDI providers? Under what conditions will such a solution be effective? We will discuss this in the article.

Using two EDI services: benefits for suppliers

EDI services help trading companies optimize costs and standardize data exchange. Working with two services gives companies a number of advantages. Let us consider the main ones.

Risk distribution

Working with two EDI providers allows suppliers to reduce risks in working with networks, in particular:

1. Technical. If the EDI service experiences technical failures, the company processes orders and delivers goods more slowly. This can lead to delayed delivery times and financial losses.
   In such cases, an alternative EDI service allows a company to continue exchanging data with the network without delay. Thanks to the integration of both services with the accounting system, the company systematizes all data on the supply of goods: they are not duplicated.
2. Financial. One EDI provider can set high tariffs for its services. Complete dependence on one provider may become financially unprofitable for the company over time.
   Cooperation with two providers makes it possible to distribute the volume of data exchange in two EDI services in accordance with their capabilities and cost. Competition between providers stimulates service improvement and provides an alternative if necessary.

Wide coverage and service compatibility

Working with two EDI providers gives suppliers the opportunity to work with a wider range of retailers. By choosing inexpensive tariffs from several providers, a company can significantly expand its coverage — provided that the integration of the second EDI service does not require significant resources or has favorable connection conditions.

Interoperable services that use the same data formats and exchange protocols (e.g. EDIFACT, XML, AS2) allow suppliers to exchange data with partners working in different accounting systems. Thanks to this approach, the company can scale, expand the geography of supply, and quickly respond to changes in demand in different regions.

Competitive advantages

If a company distributes customers between two EDI services mechanically, it creates a number of risks:

• data fragmentation;
• double administration;
• different quality of service, etc.

To benefit from cooperation with two providers, suppliers can use the advantages of each to optimize their own business processes. In particular:

• segment business partners — one service can exchange data with large networks that require strict compliance with EDI standards. In another, you can work with less structured local networks;
• better take into account the business processes of partners — in one service, suppliers can set up mass deliveries of goods due to a high level of automation. In another, they can customize data exchange to meet the needs of partners.

An additional advantage for companies is the availability of ecosystem solutions, such as signatures (QES) for legally significant documents, which are integrated into the Vchasno platform. This allows suppliers to store all documents, signatures, exchange history, and actions on a single platform. Users do not need to switch between services to sign a document.

Disadvantages of working with two EDI providers

Business practice shows that suppliers with a large number of partners often switch from using several to one EDI service. The duplication of documents and the cost of integration with the accounting system exceed the expected benefits for them.

Working with two EDI providers can cause the following difficulties for companies:

1. Increased costs. The company pays for the services of two providers within the tariffs or separately for connection, maintenance, technical support, system updates, etc. Costs increase if each EDI provider requires a separate integration.
2. Complexity of supply chain management. Working with two EDI services, the supplier is forced to distribute data between two platforms. This makes it difficult to control the supply chain in real time.
   For example, one service may support a certain type of document or data format, while the other does not. In such cases, you need to further customize the integration of platforms or convert documents manually.
3. Complicated integration. Different EDI providers may have different technical standards, security protocols, and data formats that need to be adapted to the provider’s accounting systems. Such integration requires time and technical resources.
   As business practice shows, many companies integrate only one EDI service — the one that offers cheaper, faster, or more flexible integration with the accounting system. They use another service to exchange data with individual partners.

Choosing an EDI provider: what to look for?

When choosing between working with one or two EDI providers, a supplier should take into account the size of the company, the complexity of the supply chain, and its own business goals.

Before starting cooperation with an additional provider, a company should answer the following questions:

1. How well and easily does the EDI service integrate with the accounting system?
2. Does the team receive prompt technical support? How quickly does the provider respond to requests?
3. Is the tariff structure of both providers clear? Can additional costs for connection, support, or integration be avoided?
4. Is it advisable to divide customers between two services: one for large networks and the other for local partners?
5. Will the second EDI service reduce the load on the main system and avoid business interruptions?
6. Does the additional service offer flexible exchange scenarios tailored to your type of business?
7. Does the service offer ready-made modular solutions for integration with accounting systems?

Working with two providers is best suited for large suppliers. They can use the advantages of each service when working with different clients. If the company cooperates with national and regional retail chains, the technical capabilities of the two services help it cover all the needs that arise in the supply process.