September 9th, 2020

To outsource EDI, or not to outsource EDI: That’s the question. This is a recurring dilemma among companies that currently manage on-premise EDI software and are considering migrating to a cloud-based EDI solution through a third-party Software as a Service (SaaS) provider.

According to a global study by Stanford University Supply Chain Forum, 96% of companies increased the value of their B2B integration program after outsourcing their EDI operations. As far as we can see, outsourcing seems to be the future of B2B integration, so we decided to ask our own SaaS customers if they’ve noticed a significant difference between SaaS and on-premise EDI software.

Turns out, they did (and still do). Our customers are happier with SaaS.

It comes down to 5 good reasons:

1. Cost Reduction

Forget about all costs associated with hardware, software upgrades, maintenance, third-party consulting, and more. With a SaaS platform, this is all accounted for in a fixed monthly fee. Not to mention, having a team of experts for 24/7 EDI monitoring dramatically reduces errors that often result in costly EDI chargebacks.

2. Less Burden on IT Team

Oftentimes, an in-house IT team fears moving from an on-premise EDI environment to SaaS. This is especially true when there’s a dedicated supply chain IT team. It’s their job, so it’s only natural for them to be hesitant when it comes to trusting an external EDI provider. But once the switch is made, they can’t imagine going back. That’s because they can finally stop worrying about constant EDI monitoring and focus on 1) true IT issues, like moving forward with outstanding projects, or 2) exceptions handling. Even more, with SaaS, they don’t have to spend time on responding to customer support or account managers on order and invoice status—an email reporting and query system gives those permissions to non-technical users.

3. Faster Trading Partner Onboarding

The amount of time it takes to onboard trading partners is a constant challenge in EDI. Sometimes mapping takes longer than expected, sometimes the third-party consultant you work with has longer-than-usual wait times. With a SaaS solution, you’ll have all the B2B integration tools you need, plus a dedicated EDI specialist to handle your partner onboarding and avoid issues that slow you down. With TIE Kinetix’s cloud-based EDI platform, FLOW, you can even benefit from automated onboarding for many partners.

4. Improved Planning with Fixed EDI Fees

It’s much easier to calculate your EDI costs when you roll everything into a fixed, monthly EDI fee. You can stop trying to guess how much you’re paying in maintenance, or how much it costs to add new trading partners for effective B2B integration. Unlike on-premise EDI software, with a SaaS integration strategy you’ll know exactly how much you’re spending on your cloud-based EDI solution and easily calculate EDI ROI as a result.

5. 24/7 EDI Monitoring

When migrating to a SaaS platform, nothing really changes on your trading partners’ side, except for one thing: Document exchange will run more efficiently. Thanks to a team of experts who are responsible for 24/7 EDI monitoring (including e-invoicing), you’ll be able to eliminate errors, warnings, and ultimately, EDI chargebacks.

Now you know what our customers are saying on the difference between SaaS and on-premise B2B integration solutions. So if you’re currently managing an on-premise EDI software and considering migrating to a SaaS platform, we’d be happy to guide you in the right direction.