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Things to Keep in Mind When Signing EDI Provider Contracts

Watch this if you are ready to sign a contract with an EDI provider that fits your budget (based on their initial quote) and because their solution pairs well with your infrastructure.

Use the below checklist to reassure yourself before you sign their contract:

  1. Length of the contract

Your business has the potential to grow and the requirements can change from year to year. EDI service provider you choose should be able to accommodate your requests as you grow and your trading partner changing requirements. EDI providers can lure you into signing long term contracts like 3 or 5 years with initial discounts. This happens often in the EDI space.

  1. What is the level of tech and customer support being provided throughout the contract?

You should ask your EDI provider if their customer support will remain the same throughout the term of the contract. This is important to keep monitoring your EDI project in order to avoid any fines or chargebacks from your trading partners. Some EDI providers will help you implement their EDI solution but do not provide any support if any issue occurs. Being proactive with errors while doing EDI is a crucial part of an EDI project.

  1. Will there be a price increase during the length of the contract or during its renewal?

Many times EDI providers will increase the price per transaction or during renewal of your contract. We have seen that happen very often in the marketplace. There shouldn’t be any price increase if you haven’t added any new trading partner or other service like integration or any API connection.

  1. What happens if you add a new trading partner or an API connection? How is your contract affected?

In case of any added service or trading partner, you should ask how will your price change. This helps you get an idea about their pricing for other services that you might need in the future as you grow.

  1. Are there any carrying or overage costs?

Make sure there are no surprises like automatic extension of your contract when you add a new trading partner or any overage costs on services that you already avail from them.

EDI Support’s Recommendation

Our recommendation is to sign a 1-year contract first and see what your experience with an EDI provider. Give the EDI provider an opportunity to earn your business every year. Don’t get tied into long-term contracts and spend more than what is actually required.

Read next

Learn about the questions an ideal EDI provider should be asking you when you inquire about their services in order to decide whether they are the right partner for your business or not.

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