Difference Between Outsourcing and Managed Services For Suppliers

As Supply Chain Management (SCM) grows, so does the electronic commerce interface that is required. After all, you cannot run Supply Chain Control Tower unless all the pieces of the puzzle are present. Let’s discuss specifically suppliers.
The retailer would be the one setting the standards and requirements. You, the supplier will now have a vital role. Let’s not forget it is NOT a one-sided deal. YOU will be participating in the benefits from this exchange.

The first thing for you to do is determine if you have the internal capabilities and resources to successfully implement your own EDI department or should you outsource your EDI requirements to a 3rd party EDI provider. A 3rd party EDI provider will act as your own EDI department and will take away the problems and complexities of using EDI. Typically you currently do not have or require a large organization, so ramping up and running a dedicated EDI operation could be an expensive mistake.

Don’t go away yet! Another choice is still to be made. Do you simply outsource EDI or do you search out a managed services solution? The typical reaction to this question is: “What is the difference?”


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