Should You Migrate to a Web-Based EDI

Should You Migrate to a Web-Based EDI


Web-based EDI refers to EDI solutions that one can access using a web browser like Chrome, Firefox, or Internet Explorer. It is a software-as-a-service (SaaS) that anyone can use by either paying a monthly fee or paying for the features they use (pay-as-you-go).

Web-based EDI is not a new concept, and it has been around since the late 1990s. Gradually, by the late 2000s, web-based EDI had become the mainstream choice for small and medium businesses. It is a highly affordable service that allows entrepreneurs to leverage EDI services without depleting their life savings.

What is a web-based EDI?

Web-based EDI can meet all basic accounting in addition to specialized requirements of trading. SaaS EDI typically relies on pre-populated forms that allow enterprises to document their conversations and maintain transparency. It is ideal for connecting multiple business partners from across the globe who are compatible with the EDI system of your choice.

When people ask “what is web-based EDI?,” many confuse it with internet-based EDI. Web-based EDI is not the same as internet-based EDI. Internet-based EDI works on the principle of leveraging existing communication protocols that exist on the internet for the exchange of EDI data. Internet based EDI uses HTTPS, SMTP, and secure FTP communication protocols. On the other hand, web-based EDI uses standardized SaaS systems that cater to the different necessities of multiple companies.

Why do business owners prefer web-based EDI?

No answer to “what is web based EDI?” is complete without mentioning the unique benefits of the services. In addition to cost-efficiency, you can enjoy the following advantages –

1 No upfront investment on software and installation.

2 Real-time visibility of data storage, and update.

Web-based EDI reduces chargebacks.

Web-based EDI presents the cheapest and most convenient way for businesses to transact with their vendors and partners. Utilizing a ready-to-use SaaS interface relieves you of the responsibility of setting up the relationships with your trading partners and vendors from scratch.

What are the drawbacks of web-based EDI?

Certain web-based EDI services offer the full range of features and functions for lesser than $50 per month. However, you must remember that opting for web-based EDI can restrict your trading relations. You can only transact with partners that your current SaaS EDI system supports.

Moreover, if you are thinking of adopting integrated eCommerce, you should be aware that not all web-based EDI systems support every ERP or accounting software a firm may use. You must check their compatibility from beforehand. Even with this limitation web-based, EDI remains the favorite choice of accountants and entrepreneurs due to transparent pricing policies.

Why should you consider web-based EDI?

At the same time, you can use web-based EDI for ten transactions per week or a thousand, depending on your company’s needs. It is a highly scalable system that demands flexible storage and pricing for optimum performance. It is entirely possible to store information of thousands of consumers, vendors, and employees on the web-based forms. Coupling cloud-computing with web-based EDI is typically the smarter choice. It will allow you to access the information as well as manage the same irrespective of the bulk of transactions.