Latest Updates You Need to Know in Managed EDI for 2024

A3Logics 07 Nov 2023

In this blog post, we will discuss key Electronic Data Interchange (EDI) trends that are expected to shape the business landscape in 2024. Despite previous forecasts of EDI technology becoming obsolete, the blog highlights that EDI is not only here to stay but is also expanding globally. The blog provides insights into how managed EDI integration technology is becoming increasingly essential for businesses across various sectors, offering benefits such as cost-efficiency, real-time visibility, partner onboarding acceleration, and more.


1. EDI Is Key for Digital Transformation Initiatives


After the COVID-19 pandemic, businesses all over the world had to deal with problems that had never been seen before. The sudden changes in operations, supply chains, and customer needs showed where standard business models were weak. Business owners while dealing with these new challenges were aware that there business requires a complete digital transformation.


At this point, EDI managed services became a bright spot for companies trying to find their way through the process of digital transformation. Even though electronic data interchange has been around for a while, it has become extremely crucial in today’s landscape.  If you want to know why EDI is now an important tool for business and how it helps them deal with uncertainty, the below section covers all the benefits of EDI.


  • Status of the supply chain: 


One of the biggest problems that the pandemic caused was the lack of real time status of the supply chain. As  lockdown spread around the world, it was hard for businesses to know what was the status of their orders, shipments, and stock. With its powerful data sharing features, EDI saved the day by letting people see these important parts of the supply chain in real time. Companies can effectively keep an eye on the flow of goods and information with managed services. This lets them make choices quickly and based on data.


  • Better Efficiency: 


In this fast-paced digital world, it’s very important to be efficient. When professionals with a lot of experience work on EDI solutions, they make it easier for people to share data. Businesses can get rid of the delays and bottlenecks that come with entering and processing data by hand by automating the exchange of important business papers and information. This increased productivity is a key part of going digital as it helps in optimum utilization of resources.


  • Automation of End-to-End Processes: 


Automating manual tasks is at the heart of digital change. Businesses can streamline the whole process, from placing an order to sending an invoice, with managed EDI. Not only does this lower the chance of mistakes, but it also speeds up the deals. Manual processes can make mistakes, which can slow things down and hurt ties with customers. EDI gets these tasks off of people’s shoulders, which improves speed and accuracy, two important factors for a successful digital transformation.


  • Customer response times have sped up: 


Customers have different standards now that we live in a digital world. Customers today expect quick responses, whether they are asking about orders or solving problems. When handled well, EDI gives businesses the tools they need to meet these demands head-on. Companies can quickly answer customer queries due to automation and real-time data sharing as it builds trust and reliability. 


  • Integration with Other Systems: 


Going digital isn’t a one-person job. It requires putting together a lot of different tools and systems. The integration of other important systems, such as Transportation Management Systems (TMS), Warehouse Management Systems (WMS), and Enterprise Resource Planning (ERP) solutions, is easy with managed EDI services. Businesses can use the power of an integrated digital ecosystem, where data moves easily between different parts of the business.


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Why companies are using EDI services providers?


EDI is no more a trend for large technology players. EDI in small business is also very much prevalent in the modern business world. 


Not only are small businesses realising that EDI is helpful, but they are also realising that working with the top EDI providers can make the migration easier.The  EDI service providers can help your business in a number of ways.


  • Using EDI software solutions to boost productivity


EDI’s ability to handle different business processes is one of its main benefits. This is where “efficiency” comes in. Small businesses often have smaller teams and fewer resources, so they need to be very proactive to perform well. Businesses can automate chores that used to take a lot of time and were prone to mistakes by adding EDI software solutions to their operations.


For example, the right EDI software can make order handling easy, keep track of inventory, and send invoices. This technology not only makes mistakes less likely, but it also speeds up the whole process. Small businesses are now more productive as they can crack more deals in less time.


  • Opportunity to work with large business players


Electronic data interchange simplifies the handling of large volumes of data. Adoption of modern EDI in small business presents them with an opportunity to work with giant players which practise data standards and have bigger requirements.


Being able to trade with big businesses could lead to new and profitable markets and possibilities that were previously out of reach. Small companies can easily trade data and documents with each other, which can help them become preferred suppliers or partners. EDI acts as a link between companies of various sizes, making it easier for them to work together and expand.


  • Role of EDI consulting services


There are clear benefits for small businesses using EDI, but the process may still be scary. This is where EDI consulting services are very important. These services are provided by professionals who know how hard it is to set up EDI and can help small businesses through the process.


Small businesses can use EDI consulting services to find the Best EDI Solutions providers, understand the technical side of integration, and deal with any problems that come up during implementation. They make sure that the switch to EDI goes as smoothly as possible by being there for you. Small businesses can use this expert knowledge to make smart choices and make the most of their EDI systems for maximum efficiency.


This isn’t just a trend, it’s a smart move. Small and medium-sized businesses (SMBs) can make their operations run more smoothly, trade with bigger companies, and survive in today’s competitive business world by integrating EDI solutions. Hiring top EDI providers for managed services, the businesses can use EDI to the fullest and meet the requirements. Small businesses are also using EDI today for their day to day operations, thus eliminating the manual processes.


2. EDI and API


EDI (Electronic Data Interchange) and API (Application Programming Interface) are two important technologies that play critical roles in modern corporate operations, particularly in eCommerce. Both technologies have significant advantages, and when used together, they can produce a powerful synergy that allows for seamless data interchange and integration.


The EDI-API Connection:


 EDI (Electronic Data Interchange), is a established way of transmitting structured data between different businesses, frequently utilizing standardized message formats.


On the other hand, APIs  are modern adaptable technology that allows different software applications to communicate and interact with one another.


Now, why are both technologies critical for organizations, particularly in eCommerce?


EDI is like a dependable workhorse that has been handling B2B transactions for years. It thrives at structured, batch-oriented data exchanges, making it appropriate for typical processes. Consider it the trusted channel for large-scale, recurrent transactions.


EDI service providers in USA recognize the benefits it delivers to businesses. They provide extensive EDI services, such as mapping, translation, and electronic document delivery between trading partners. For large organizations, EDI is non-negotiable, and they frequently compel their suppliers to be EDI-capable.


However, with the increasing growth of eCommerce and the necessity for more agile and dynamic data exchanges, APIs have risen to prominence. APIs provide real-time connectivity and flexibility, making them perfect for more interactive, on-demand data sharing. They enable smooth integration of data from numerous sources into eCommerce platforms or applications.


API integration enhances EDI and adds meaning to your B2B integrations with your digital ecosystem, while EDI enables downstream business operations and data orchestration. This means that, while APIs can provide speedy access to real-time data, EDI ensures that the data received is processed and integrated into company activities efficiently.


Let’s look more closely at how EDI and API work together to support the ever-expanding eCommerce landscape:

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3. EDI Is Important in eCommerce


In the eCommerce industry, EDI has been a formidable force. Its historical supremacy in B2B transactions has effortlessly migrated into the digital age. The stats tell a compelling story. In 2019, EDI enabled $7 trillion in B2B electronic sales. By 2021, this figure had risen to $8.38 trillion, accounting for a sizable 76.5% of total digital sales. Complete EDI Solutions have enabled eCommerce organizations to dramatically streamline their procedures.


Order processing, invoicing, procure-to-pay, and other critical eCommerce processes rely on EDI. The relationship between the two is projected to strengthen as eCommerce continues to rely on EDI for these activities. Essentially, EDI is the engine that drives much of the commerce-related data exchange in the digital domain.


EDI providers understand the unique demands of the eCommerce sector and provide bespoke solutions to satisfy the specific needs of firms in this space. They provide the required experience and technologies for businesses to seamlessly integrate EDI into their eCommerce platforms, ensuring a smooth flow of information and transactions.


EDI and API, while diverse in functionality, are like puzzle parts that fit together properly. EDI, with its organized and batch-oriented approach, efficiently handles fundamental business procedures. In contrast, APIs provide the agility and real-time data exchange capabilities required in the dynamic world of eCommerce. Combining these technologies gives organizations access to the best of both worlds, allowing them to efficiently manage their supply chain, automate transactions, and use real-time data for strategic decision-making.


Businesses that want to prosper in eCommerce must grasp the significance of this symbiotic link between EDI and API. It is not a matter of picking one over the other, rather, it is a matter of harnessing both technologies to create a resilient and responsive digital ecosystem. The finest EDI systems recognize this synergy and provide comprehensive services that include both EDI and API connectivity, allowing businesses to flourish in the fast-paced and competitive eCommerce industry.


4. Health care is a strong EDI sector


EDI in healthcare had become strong and important over the past few years. As EDI complies with the Health Insurance Portability and Accountability Act (HIPAA), this makes it an essential tool for protecting healthcare customers’ data privacy. Let’s look at how EDI has been adopted by the healthcare industry and how it’s being used to improve different parts of healthcare processes.


  • HIPAA Compliance and Data Privacy: One of the main reasons the healthcare industry has become a strong supporter of EDI is in order to strictly follow HIPAA rules. When it was passed in 1996, HIPAA was meant to keep private and sensitive patient information safe. A good fit for these ideas is EDI, which lets people share data in a safe and consistent way. This reduces the risk of privacy and data leaks. 
  • Inventory Management: Hospitals, clinics, and drug companies that work in health care are very careful with their stock. Therefore, EDI plays an important role here.


It speeds up the supply chain by automating jobs like inventory tracking and buying access to it. Business can see real-time updates on the amount of medicine and medical goods they require. As a result, this prevents from running out of stock and also reduces wastage.


  • Order Accuracy:


Accuracy is very important in the healthcare field. Order mistakes can be very bad, whether they are for medicines, medical tools, or supplies. EDI helps make sure orders are correct by getting rid of the need to enter data by hand and lowering the chance of mistakes. Healthcare professionals can send and receive electronic orders and bills through EDI. Systems will instantly check the data against each other to find any errors. This makes it more likely that orders will be correct, which lowers the risk of mistakes that cost a lot of money.


  • Privacy:


You can’t say enough about how important safe communication is in healthcare. When sending private health data, EDI provides a safe and consistent way to do it. Data is kept safe while being sent using encryption and authentication. This makes it a reliable option for sharing patient records, medical reports, and other private data. The use of EDI for secure exchange keeps patient information safe and private, which is exactly what HIPAA requires.


  • Delivery Efficiency:


It’s very important for healthcare providers as medical supplies and tools get delivered on time and without any problems. EDI speeds up the whole process from procurement to delivery. It automates order handling so that orders can be filled quickly and correctly. EDI can also work with transportation management systems (TMS) to make deliveries easier and  track in real time. Apart from these, it also lets healthcare workers see where each shipment is at all times, so they can plan and act accordingly.


5. Peppol and e-invoicing rules are getting stricter


In areas other than healthcare also, EDI has grown a lot.  Let’s talk about what Peppol and the growing number of e-invoicing laws mean.


What Peppol Does for Procure-to-Pay:


The goal of creating Peppol was to make the procurement-to-payment process more consistent and streamlined in the European Union (EU). Peppol helps government agencies and suppliers do electronic procurement. This makes the sharing of purchase orders, invoices, and other procurement papers faster and more consistent. One of the best things about Peppol is that it gets rid of the need for each trade partner to follow their own set of rules and requirements. This makes setting up EDI easier, which makes contact and onboarding go more smoothly.


  • Adoption of Peppol Around the World: Peppol was created in the EU, but it’s not just used in European countries. Australia, Singapore, Japan, and New Zealand are just a few of the countries that have seen the value in making Peppol their standard for EDI-based buying. Even though these countries may not have specific laws or rules that require them to use Peppol, more and more countries are likely to start doing so as they see the benefits of digitizing and standardizing their buying processes.


Why expanding e-invoicing requirements is important:


The larger shift to digital business processes is closely linked to the growth of e-invoicing requirements. Around the world, governments and regulatory bodies are beginning to understand that paying over the internet can save them time and money. As a way to make the payment process more standard and up-to-date, more and more states are requiring e-invoicing. That’s right, less paper will be used, and money transfers will be faster and more accurate.


As these rules keep getting stricter, more businesses are likely to start using electronic billing, which will make EDI an even more popular way to send and receive information electronically. More and more, companies that want to follow these rules will use EDI systems, like Peppol, to make sure that their billing processes are in line with what the rules say they should be.


6. EDI outsourcing


These days, Electronic Data Interchange (EDI) is important for both large and small businesses because it speeds up the communication process and also tasks are done more efficiently. This is where the thought of EDI outsourcing services comes in handy. Many businesses are now moving towards outsorcing their EDI needs and focussing on core business activities.


It can be hard for small businesses to get the time, money, and people they need. They might not be able to handle their EDI tasks well on their own because of these restrictions.Smaller companies may also find it hard to handle the complicated EDI tasks that need to be done, like adding new trade partners, making connections, making maps, keeping track of orders, fixing errors, and more. The answer is to hire expert EDI service providers in the US and other countries to do these jobs.


That being said, big businesses might have the tools to handle their EDI tasks on their own. But it might be harder for them to keep track of everything as their EDI surroundings get more complicated. Most of the time, big companies do business with many different trade partners. Each one has their own needs when it comes to setting up and integrating systems. Outsourcing EDI to professionals can ease their tasks and they would be out of the hassle of managing large bulk of data.


Why Hire EDI service providers in USA


EDI service providers in USA and other parts of the world have become very important to businesses as the trend of outsourcing EDI services grows. These service providers offer many different services to meet their clients’ different wants. Among their skills are usually:

EDI service providers help businesses easily add new trade partners. This is called “partner onboarding.” Setting up the necessary connections, communication protocols, and making sure that data can move easily between the entities are all part of this process.


  • Making connections: They set up and manage the links between different groups, making sure that data can be sent correctly and safely.
  • Building Maps: Data mapping, which is needed to move data between systems and make sure they work together, is made and kept up to date by EDI service companies.
  • Order Tracking: One of the main jobs of these service providers is to keep track of orders and analyse the whole process from placement to delivery. This way, companies can monitor their operations at all times.
  • Error Resolution: When problems or differences show up in the EDI processes, EDI service providers step in to find, fix, and stop mistakes before they mess up the supply chain or business operations.


The knowledge and efficiency that specialized service providers bring to the table is an advantage of hiring them to do these tasks. They have EDI-specific teams that know a lot about the systems and processes involved, making sure that all EDI activities run smoothly and efficiently. A lot of EDI service providers also offer flexible plans that let businesses pick and choose which parts of EDI they want to handle themselves.


Benefits of EDI Outsourcing


These are some of the main reasons why EDI outsourcing services are so popular:


  • Cost Effective: Businesses can save money by outsourcing their EDI tasks.This is more suitable for smaller businesses that do not have an in-house infrastructure for EDI. Hiring EDI specialists can help a business gain professional guidance.
  • Expertise  The EDI Service Providers’ systems and standards know a lot about how they work and how to make them work well. It’s easy for them to learn how to use EDI, which keeps things running smoothly and quickly.
  • Scalability: Outsourcing lets businesses change the size of their EDI functions as their needs change as they grow. If the needs of their clients change, EDI service providers can adapt by adding new trade partners or offering more services.
  • Time Efficiency: Businesses can free up important time and resources by giving EDI tasks to experts. This lets them focus on things that are important to their business, like making new goods, helping customers, and putting up ads.
  • Lowering the number of mistakes: EDI service providers can find and fix mistakes right away. This keeps supply chain operations running more smoothly and reduces the number of problems that happen.
  • Remote Capabilities: Many EDI options are now available in the cloud, which lets outsourcing companies do work from home over the internet. This online access makes things even more flexible and easy.


7. Integration of EDI gives businesses control and visibility


Leading EDI solutions are changing to give businesses more control and insight over their operations. This is happening at the same time that EDI outsourcing services are becoming more popular. This change in EDI integration is very important for giving businesses the information they need to make smart choices and improve their processes.


The best managed EDI solutions now offer full transparency, which helps users understand how their EDI processes work. This includes things like real-time error messages, which let users know when and where problems happen in the EDI processes. Because companies get feedback right away, they can fix mistakes before they affect the supply chain or interactions with customers.


Custom dashboards are also now a regular part of EDI solutions today. These screens get information from many connected systems in real time and show it to users in a way that makes their operations look complete. You can use this information to find the supply chain’s strengths and flaws, make improvements, spot trends, and have a say in important decisions.


Leading EDI systems have also made it easier for partners to join, integrate, and build maps. They make these processes easier as they provide tools like pre-built maps and connections that are already set up. This saves businesses a lot of time and work while still giving them full control and visibility over their EDI plans and implementation.


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Management of Electronic Data Interchange (EDI) is about to go through a big change in 2024. This blog talks about some trends that show how EDI is becoming more important in digital transformation projects. Also, it shows how it is being used more in industries like eCommerce and healthcare. Moreover, the increasing demand for EDI outsourcing services are becoming popular. For smooth B2B integrations, businesses are using EDI and API as they both work well together. Leading EDI systems offer better control and visibility, which means that businesses can be more efficient and make better decisions. To stay successful in the changing world of EDI going forward, we need to follow these trends.




Q1: What role will EDI play in 2024?


EDI (Electronic Data Interchange) is very relevant in 2024, as it is critical to digital transformation activities. Businesses are rapidly recognizing its potential in improving supply chain visibility, efficiency, and automation.


Q2: Why are small firms interested in EDI in 2024?


Because of its capacity to automate procedures, EDI is being adopted by smaller organizations, making them more competitive and efficient. It enables them to conduct business with larger enterprises while handling higher transaction volumes.


Q3: How does EDI and API integration help businesses?


Combining EDI with APIs allows for more complete data integration. APIs enable real-time communication and flexibility, whereas EDI automates business procedures. They help businesses to easily adjust to changing communication and data requirements.


Q4: In 2024, what function will EDI play in eCommerce?


EDI remains a major force in eCommerce, with its utilization increasing year over year. It is critical for procedures such as order processing, invoicing, and procure-to-pay, making it more important in the eCommerce industry.


Q5: How can EDI outsourcing help businesses of all sizes?


EDI outsourcing services are getting more popular because they allow organizations to delegate time-consuming and complex EDI tasks to professionals. This reduces expenses while simultaneously improving efficiency, error resolution, and scalability. Smaller businesses can gain access to expertise without incurring the costs of full-time staff. And, larger firms can efficiently streamline their complicated EDI ecosystems.