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What is Web EDI or Cloud-Based EDI?

Highlights

  • Web EDI or Cloud-based EDI is exchange of EDI documents through any internet browser between two entities
    • Web EDI enables businesses to be EDI capable with their trading partners through a secure connection in hours or even minutes
      • Web EDI, generally, functions like an email with an inbox and outbox to send and receive EDI documents from a web portal offered by managed EDI services in the marketplace

      Intoduction

      Web EDI or web-based EDI or cloud-based EDI as the name suggests is when you use a web-browser to exchange EDI documents between businesses. The way this works is the user enters all the information contained in a document on a web form and that data is converted into an EDI message and transmitted through one of the EDI communication methods to the other party.

      Generally, the concept of Web EDI came into existence with the idea of providing a cost-effective and an affordable solution to the companies. Small to medium sized companies that don’t have enough EDI knowledge on staff or have small tech teams can rapidly connect with their trading partners and streamline their order-to-cash cycle without having special any special knowledge. Today, Web EDI as a full-fledged EDI solution is offered by managed EDI service providers that businesses can implement fairly quickly within hours if they are just starting out with EDI.

      How does Web EDI or Cloud-based EDI work?

      Most managed EDI providers offer a simple solution that usually functions like an email. The staff member assigned to the EDI task logins into the portal on his/her internet browser. There is an inbox where he/she will receive inbound EDI documents and the outbound EDI documents go out from his/her outbox. He/She gets alerted through an email in their registered email address when they receive an inbound document so they can check and take an action as required. Businesses can now integrate with their back-end systems like accounting or shipping software or their warehouse management systems allowing them to streamline their businesses processes.

      Difference between Web EDI and other types of EDI

      • Businesses can send and receive EDI information without needing to download any software on premise
      • Businesses just need an internet connection to access a web portal
      • Document mapping, compliance, data archive and backup is handled by the managed EDI partner
      • Fast set up, low upfront costs and easy scalability are some great benefits over EDI via VAN or FTP
      • Real time status updates provided by most managed services
      • Most managed services offer pre-populated forms along with error alerts when someone enters wrong information or make a mistake with a letter or a number, intelligently informing the data entry person that the system would not proceed to the next step without correcting the error.

      Why is Web EDI more popular more so now?

      This concept is so appealing in today’s COVID world because companies are giving flexibility to their employees to work from anywhere. Whether your staff is trained in EDI or not, this type of solution can work very well for your business. Small to mid-sized businesses can now easily trade with their trading partners across industries without managing a complex EDI environment or install any software.

      Listen to our CEO explaining what Web/Cloud-based EDI means in detail:

      How much does Web EDI cost?

      Most managed services provide their web EDI solution at a low upfront cost but on a monthly/yearly subscription basis depending on either the volume of transactions or number of trading partners.

      For e.g. some managed services can offer tiered transaction levels like 1-50 transactions per month may cost you $0.50 per transaction, 50-100 transactions per month may cost you $0.45 per transaction per month and the cost per transaction reduces as you go up. Other services may provide you with a bundle of 5 trading partners or 10 trading partners costing you from $6000-12000 and so on.

      Different managed services offer different types of contracts could be month to month or one year- three years.

      Read next

      Understand different EDI pricing models available in the marketplace