Even though EDI originated in the 1960s, the transactions made today are still critical regarding the flow of supply chain data for various sectors, including banking, manufacturing, and retail. If there are hindrances to the ability and speed of these file exchanges, there can be serious negative impacts on overall business performance. 

Understanding some of the biggest challenges related to EDI in the digital age and how you can mitigate the issues that may arise is the best way to ensure the impact to your supply chain isn’t significant. 

The Main Challenges of EDI

There are some companies that are still using legacy EDI infrastructure, including homegrown systems or Value-Added Networks, to transform, translate, and transfer while integrating EDI messages between enterprise and partner systems. With the total number of training partners continuing to grow in the supply chain, new technology requirements are emerging. Due to this, some companies are encountering the following problems:

  • – Issues monitoring and troubleshooting errors as they occur
  • – Inefficient onboarding of new partners
  • – The high cost associated with maintaining the infrastructure

 

Modernize Your EDI with Managed File Transfer and Uniting Integration Platforms 

If you want to overcome the challenges mentioned above with your EDI, it’s a good idea to begin using two cloud-based technologies, which will help you to easily manage and scale the flow of your EDI messages with all the other trading partner systems. The two technologies include:

 

Because of how complex the use of traditional EDI systems is, more and more companies are beginning to use APIs for exchanging EDI data with their partners. Modern iPaaS solutions, such as Boomi and MuelSoft provide users with a modern method for managing EDI integrations and allow them to enable a microservice’s based architecture featuring governance, security, and reusability.

MFT and EDI systems

In the coming years, it is expected that more and more organizations will begin using APIs for B2B integration. While there won’t be a reduction in the total EDI transactions taking place, but more and more APIs are going to be used to help manage the EDI-based transfers that are taking place. 

The MFT systems being integrated into EDI systems are being used as the send/receive component in the EDI infrastructure. The role of these systems is to manage the exchange of your EDI documents. By implementing an MFT system that is able to easily connect with iPaaS solutions, you will find that it is possible to easily manage higher volume file transfers while guaranteeing to deliver, tracking all activity, and securing the data. 

For businesses that want to modernize their EDI to help achieve improved supply chain performance, using the information here is a step in the right direction. Working with an EDI consultant can also prove beneficial when trying to optimize processes and systems that are already in place. Be sure to keep this in mind as you continue to take steps to make your processes more effective and efficient.