Increasing profitability through EDI outsourcing

The economic downturn is forcing organizations to review their current IT business processes.
Increasingly Third Party Outsourcing (TPO) providers are reporting of being approached in regards to outsource EDI operations.

Initially the decision on doing EDI is an easy one. It is considered of making a one-time upfront investment in hardware, software and development and then pocket the gains from decreased transaction costand over a short time the initial investment cost have been recovered.

This is the time, when EDI moves from being a profit center, to being a cost center and companies start looking how they could save even more money. At this point outsourcing EDI may become a consideration.

Outsourcing EDI comes in many varieties and flavors. Finding and implementing the right solution depends of the readiness state of an organization. A readiness state is defined as followed:

  • Is the business just beginning EDI operations?
  • Does the business perform already EDI is one or more trading partners?

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