How Much Does An EDI Transaction Cost?

It’s fairly well documented that EDI and automated B2B processes can save money over manual, paper-based transactions. But just how much money are buyers and suppliers paying per EDI transaction, and are there ways to cut costs?

Surprisingly, many small and mid-sized business don’t know that answer, according to experts. Typically, suppliers have set up their EDI systems per the requirement of the vendors with whom they do business, and thus view EDI transactions as a cost of doing that business.

Many small and mid-sized businesses simply don’t know what their EDI transactions cost them, and when they do sit down to perform an analysis, they are often surprised. Companies should always evaluate what are the savings to the company. By understanding costs, companies can better evaluate whether they should add new capabilities to their EDI system, or perhaps even extend the EDI functionality to more business partners. For example, some companies may be satisfied by using EDI only for purchase orders, advanced shipping notices (ASNs), and invoices with their buyers but through a detailed cost analysis may find that there are more ways to save, such as exchanging EDI documents with carriers.

Calculating EDI transaction costs can be tricky, but it can be done.