THE OUTSOURCING INSTITUTE
MICHAEL CORBETT. FOUNDER
"If a company is going to choose to do EDI on their own, they had better be able to look themselves in the mirror and say, were not just better at this than our competitors, were better at this than the best company our competitor can hire".
THE OUTSOURCING INSTITUTE
"Outsourcing is rapidly becoming an accepted management tool for redefining and reenergizing the corporation. It challenges today's executives to rethink the traditional vertically integrated firm in favour of a more flexible organization structured around core competencies and long-term, outside relationships."
Skilled EDI staff is in short supply. In fact, EDI users report that the EDI labour shortage is the leading problem that they face. A member of the President of the United States' task force on the IT workforce shortage points out, "If you have no EDI, it can bring a company to their knees"
EDI usage continues to grow, driven by hub companies that stand to gain as much as 40% in cycle time improvements, 30% in error reductions and more than $5.00 per document cost savings.
Factors to Evaluate When Considering Outsourcing
When a company is evaluating how to service their EDI needs, a number of factors need to be assessed. Making the right strategic decision is critical to ensure that the benefits of EDI are maximized throughout business operations. The key factors to be considered can be easily summarized into the following categories: human resources, software, hardware, network, outsourcing alternatives.
The skills required to establish and monitor on-going EDI processes are highly specialized. Locating personnel with these skill sets is a challenge, and the time required to develop and train your own resources can be very time consuming and costly. Once trained then you are exposed to the risks of employee turnover and the impact it can have on your operations. EDI support is not confined to a forty hour work week, and in many cases requires 7x24x365 support levels.
Making the right translation software decision can have a major impact on your ability to rapidly deploy new trading partners and transactions for your business. The capital cost of software is significant along with annual maintenance charges, and the in-house costs associated with managing the environment and upgrades.
In your evaluations you must consider the costs of hardware to house your translation and communications software and back-ups. While these may share space on an existing platform there is still a "total" cost element that needs to be considered.
Managing the communications and networking requirements can be a significant challenge. You need to coordinate with your trading partners to ensure that data transfers are handled in a timely and efficient manner. There are many communication alternatives in the EDI world, and you are often confronted with accepting your trading partners' standard. This can lead to costly, hardware and software needs, and knowledgeable communications support staff.
Precision E-business Group (PEG) offers an effective alternative that should be given serious consideration. They have a staff of highly experienced EDI professionals who are very versed in the needs of implementing EDI. They can handle the process from start to finish including interfacing with your trading partners to complete the implementation and support loop in a very timely manner. Using shared resources also enables a lower per transaction processing cost than in-house can normally deliver.
PEG understands EDI. We have been in this business for over 11 years across multiple industry verticals. We deliver fast, reliable and cost effective service in a partnership style of operations. We understand the importance and value of providing a high level of customer service and satisfaction.