EDI is simply the process of exchanging data between computers or computer networks. The most common usage of an EDI system is for daily communication of business documents between users inside a company and with external suppliers or customers. Exchange protocols are managed by EDI software or an EDI software solution.
This article will review the top 20 Electronic Data Interchange (EDI) software solutions to help companies compare them.
However, before launching into our list, let’s go over what EDI software does and how it’s used, review the growth in demand for EDI software tools, and take a brief tour of the most-needed features of EDI software solutions.
What EDI Software Does
EDI software provides project planning electronic data interchange software and document mapping tools to automate data transfers and optimize data for transfer.
It converts files into prescribed formats or provides format templates for data transfers. EDI software eliminates much of the need for emailing, faxing, or sending by postal mail.
Often used in conjunction with a data integration platform, EDI collects data from multiple sources, either onsite or in the cloud, and offers many benefits.
Why Use EDI Software
1) Increase ROI
EDI helps you increase ROI by increasing the speed of the order-to-cash process, optimizing inventory turnover rates, and more.
2) Reduce cost
EDI reduces the cost of exchanging documents and files.
3) Reduce dependencies.
EDI reduces value-added network (VAN) dependencies.
4) Enhance workflow and streamline processes.
EDI improves data workflow and streamlines business processes.
5) Improve visibility.
Through electronic reporting, EDI enhances the ability to monitor, display, and analyze data.
6) Reduce human error.
Automated and paperless, EDI reduces human/manual errors.
7) Strengthen relationships.
Smooth data transfer strengthens your relationships with both vendors and customers.
EDI Software Market Growth
According to the most recent market analysis by Fortune Business Insights, the global EDI market reached $1.6 billion (USD) in 2019.
It is projected to grow to $3.5 billion by 2027, with a compounded annual growth rate (CAGR) of 10.7%.
In North America, the EDI market reached $896.4 million in 2019 and is expected to grow at a similar rate.
Factors driving growth in the local EDI provider market include the following:
- Increasing adoption of Industry 4.0 technologies
- Rising demand for cloud-based EDI solutions
- Expansion of the logistics industry
- Ease of information exchange between small and large organizations
- High demand for EDI software in healthcare amid COVID-19
- Rapid growth of e-commerce in the Asia Pacific
By industry, the highest EDI software market share is held by Logistics, followed in order by Retail, High-Tech and Manufacturing, Financial Services, Healthcare, Automotive, and then all others.
Logistics will maintain the highest market share through at least 2027, with significant retail and healthcare growth.
EDI Software Features
Before investing in an EDI software solution, companies must compare features to make sure they choose the best EDI software price provider for their business needs.
Some of the most desired features for EDI software solutions include:
Standards compatibility
You will want to choose a compatible platform with all available document and format standards and variations. Common EDI standards are the US-based ANSI ASC X12, EDIFACT, PEPPOL, RosettaNet, Tradacoms, etc.
Documents support
Initially introduced for exchanging invoices and payments, EDI has since moved into nearly all business sections.
Today. EDI translation software is commonly used for acknowledgments, quotation requests, shipment orders, remittance advice, etc. You want to choose an EDI software solution that can handle all forms of documents.
Protocols compatibility
Computer protocols are like human language. They allow computer systems to communicate with each other.
For smooth data exchange, computer sy