Friday, April 24, 2009

Save Money Now

It's time to do an economy related post on the Sage Software Integrated EDI solution blog I’ve had running successfully since 2007.

I have been calling a ton of companies lately with the same goal in mind and that is to find companies that are just requiring to implement EDI and need a solution or have been running EDI for years but paying excessive amount of costs.

In the case of the existing EDI user they have been set-up on some sort of Web based EDI solution and have been manually printing sales orders into their accounting system such as Sage MAS 90 and then going back to the same Web based EDI system to manually type in the invoice and send it back via EDI to Wal-Mart and probably paying a fee for that “otherwise should be free” service.

Since we're talking Wal-mart, when you walk into Wal-mart you will typically see 2 shopping carts at the front of the store showing 2 carts full of the same products with one with items bought at Wal-mart with the Wal-Mart receipt and shrink-wrapped, and other bought at a competitor with their much higher receipt shown in the same manner if we used the same scenario for EDI you can see the bigger picture.

Typical EDI providers will have a per document fee or Kilo Character service plan based on your monthly volume, below is an example of such costs.

Company - A
EDI Services – Transaction based Webforms
Manual Printing and Data Entry


KC/Qty Rate Amount
Monthly EDI Company Fee 1 50.00 50.00
Per Trading Partner Surcharge - 12 Partners 5 5.00 25.00
0-5 Documents - Free 5 0.00 0.00
6-20 Documents - @ $1.80 each 15 1.80 27.00
21-50 Documents - @ $1.55 each 30 1.55 46.50
51-100 Documents - @ 1.30 each 50 1.30 65.00
101-200 Documents - @ 1.05 each 100 1.05 105.00
201-400 Documents - @ $0.80 each 200 0.80 160.00
401-600 Documents - @ $0.55 each 42 0.55 23.10
Per Document Interconnect Fee 34 0.20 6.80

Total Monthly Fee 508.40


With this scenario the company is paying for someone to log into online to some Web site to view the EDI orders and print them then spend a few hours typing them into the ERP solution and then later going back to the same online system to type Invoices (810) and Advanced Shipping Notices (856) which has a whole other set of problems with functionality.

This company is paying about $6000-$7,000 per year for 12 Partners to use a website to get documents and send documents via EDI and handling this all manually. The solution is invest in an integrated solution that I can work with the customer to provide the cost for implementation and get onto our system that is not transaction based and will provide your company with multiple connections to not only normal Trading Partners but also 3PL ( Third Party Logistics ) providers and eCommerce platforms such as eBay.

The Sage Software EDI solution market space is full of companies and resellers that can either provide you with a service, sell you tools or build something from scratch, the choices are really up to you to decide and evaluate. I can tell you many EDI providers do not write their own EDI solutions and typically rely on another vendor to write the connections. Who does the support for this? eBridge does all of the integration work, we don’t customize the ERP solution in order for EDI to function like many of them do and we provide yes a True “ end-to-end solution “ that is complete by one company including the communication with No monthly transaction costs.

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eBridge Software
Account Manager
Direct: 905-635-3309
Ph: 905-631-8333 ext. 247
Fax: 416-946-1805