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Choosing The Right Managed EDI Service Provider: What To Look For?

Author: jack
Published:May 21, 2023
7 mins 33 secs

Electronic Data Interchange (EDI) is a crucial part of modern business. EDI streamlines business processes by exchanging information between trading partners in a standardized electronic format.

Managed EDI services take the burden of EDI management off a business’s internal IT team and handle it for them.

This allows companies to focus on their core competencies and reduces the risk of EDI errors.

However, choosing the right managed EDI service provider with proper IT Consulting Services can be as difficult as finding a needle in the haystack.

In this article, we will discuss what to look for in a managed EDI service provider and provide a list of the top providers in the USA.

Understanding The Managed EDI Service Providers

A managed EDI service is a solution that outsources the management of an organization’s EDI operations to a third-party provider.

Managed EDI service providers offer a range of services, including EDI implementation, testing, trading partner onboarding, and ongoing management and maintenance.

Managed EDI services help businesses to save time and resources by taking care of their EDI needs while allowing them to focus on their core competencies.

EDI Managed Service Providers typically operate on a cloud-based platform, which allows businesses to access their EDI data and reports from anywhere at any time.

This is particularly useful for businesses and IT Consulting Services with multiple locations or remote employees.

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Some Key Benefits Of A Managed EDI Service Provider?

Choosing a managed EDI service provider offers several benefits for businesses. Here are some of the main advantages:

  • Reduced IT Overhead: A managed EDI service provider takes on the responsibility of managing and maintaining the EDI system, reducing the burden on the internal IT team.
  • Improved Efficiency: By outsourcing the EDI management, businesses can focus on their core competencies and improve efficiency in other areas.
  • Faster Onboarding: Managed EDI service providers have experience working with a range of trading partners and can facilitate faster onboarding.
  • Increased Accuracy: EDI Managed Service Providers are experts in EDI and can reduce the risk of errors that can occur with manual EDI management.
  • Enhanced Security and Compliance: Managed EDI service providers have experience with data security and compliance regulations, reducing the risk of breaches and ensuring compliance.

Things To Keep In Mind While Choosing A Managed EDI Service Provider

Choosing the right managed EDI service provider from so many options available in the market like the  EDI Companies in USA Europe, or from growing tech startups of India, is a tough decision to make. Here are some essential factors to consider when choosing a managed EDI service provider:

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1.) Expertise And Experience

When choosing a managed EDI service provider, it’s essential to consider  their experience and expertise in the industry.

Look for a provider that has a  proven track record of working with businesses in your industry and has experience with your specific EDI needs.

Choose a provider that has a team of experts that can guide you through the EDI implementation process and provide ongoing support.

EDI Companies in the USA is an ideal choice if we consider the parameters of experience and expertise. 

2.) Customer Support

Customer support is crucial when it comes to managed EDI services. Look for a provider that offers 24/7 customer support and has a dedicated support team.

Make sure the provider has a clear escalation process for resolving issues and can provide timely and effective support.

3.) Security And Compliance

Data security and compliance are critical when it comes to EDI. Look for a provider that has experience with data security and compliance regulations such as HIPAA, SOX, and GDPR.

EDI involves the exchange of sensitive business information, and your EDI service provider should have stringent security measures in place to protect your data.

The provider should offer encryption, data backups, and disaster recovery plans to safeguard your data from unauthorized access, loss, or theft.

4.) Scalability And Flexibility

Your EDI service provider should be able to scale their services as your business grows.

As your trading partners increase, you will need a provider that can support the additional EDI transactions and integrate new trading partners into your supply chain seamlessly.

It’s important to choose a provider that can grow with your business and offer flexible pricing plans to accommodate your changing needs.

5.) Integration Capabilities

The EDI service provider should have a robust integration platform that can integrate with your existing ERP (Enterprise Resource Planning) or accounting systems.

This reduces the need for manual data entry and ensures data accuracy. Additionally, the provider should support different EDI protocols such as AS2, FTP, or SFTP, to accommodate your trading partners’ preferences.

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6.) Cost 

The cost of managed EDI services varies depending on the provider and the services offered. It’s essential to choose a provider that offers transparent pricing plans with no hidden costs.

Additionally, the provider should offer cost-effective solutions that align with your budget without compromising the quality of services.

In simple words, choosing a managed EDI service provider requires careful consideration of several factors.

By selecting a provider that understands your industry, offers scalable and reliable services, integrates with your existing systems, and provides robust security measures, you can streamline your supply chain, reduce costs, and improve your business efficiency.

A Sample Set Of Questions To Ask While Evaluating Managed EDI Service Providers

When evaluating EDI Managed Service Providers, it’s essential to ask the right questions to make an informed decision.

Here are some questions you should ask to determine whether the provider is the right fit for your business:

  • What industries do you specialize in?
  • Can you provide references from businesses in my industry?
  • What EDI protocols do you support?
  • Can you handle my trading partners’ specific EDI requirements?
  • Do you have experience integrating with my ERP or accounting systems?
  • How do you ensure data security and compliance with regulations such as HIPAA or GDPR?
  • What is your uptime guarantee, and how do you handle downtime or technical issues?
  • What pricing plans do you offer, and are there any hidden costs?
  • Can you provide customized EDI solutions to meet my specific needs?
  • How do you handle EDI testing and onboarding new trading partners?
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Asking these questions will help you determine whether the EDI Managed Service Providers have the expertise, capabilities, and pricing plans that align with your business needs.

Additionally, it’s important to ask for a detailed service-level agreement (SLA) that outlines the provider’s responsibilities, guarantees, and performance metrics.

This ensures that both parties have a clear understanding of the services provided and can hold the provider accountable if any issues arise.


Choosing the right Managed EDI Service Provider is a critical decision for any business that wants to improve its electronic data interchange operations.

A good Managed EDI Service Provider can help businesses streamline their supply chain processes, improve communication with trading partners, and reduce errors and delays.

To choose the right Managed EDI Service Provider, businesses should consider various factors, such as expertise and experience, flexibility and scalability, integration capabilities, customer support, security, pricing and cost, service level agreements, and industry-specific experience.

By asking the right questions and carefully evaluating potential providers, businesses can find a partner that meets their specific needs and goals.

To summarize, Managed EDI Services can be a game-changer for businesses that rely on electronic data interchange.

With the right Managed EDI Service Provider, businesses can improve their efficiency, reduce costs, and gain a competitive advantage in their industry.

FAQs About Managed EDI Service Providers

What Is Managed EDI Services?

Managed EDI Services is a type of service that helps businesses manage their electronic data interchange operations.

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What Types Of Businesses Can Benefit From Managed EDI Services?

Managed EDI Services can benefit businesses of all sizes, across various industries.

Any business that relies on electronic data interchange to manage its supply chain or communicate with trading partners can benefit from Managed EDI Services.

Can Businesses Customize Managed EDI Services To Meet Their Specific Needs?

Yes, businesses can customize Managed EDI Services to meet their specific needs.

A good Managed EDI Service Provider will work closely with the business to understand its requirements and design a solution that meets its unique needs.

How Long Does It Take To Implement Managed EDI Services?

The implementation time for Managed EDI Services can vary depending on the complexity of the business’s requirements and the level of customization required.

A good Managed EDI Service Provider should be able to provide an estimated timeline for implementation.

How Can Businesses Ensure That Their Data Is Secure With A Managed EDI Service Provider?

Businesses should look for a Managed EDI Service Provider that has strong security measures in place, such as encryption, firewalls, and secure data centers.

The provider should also have protocols in place for monitoring and responding to security incidents.

Why Is It Important To Choose The Right Managed EDI Service Provider?

Choosing the right Managed EDI Service Provider is critical because it can affect a business’s supply chain processes, efficiency, and communication with trading partners.

A good provider can help a business reduce costs and gain a competitive advantage in its industry.