How your EDI system can perform better with the help of four important tools

When discussing EDI systems, there is often talked about the general concepts behind the technology, but the tools needed for these systems to achieve maximum efficiency are not frequently mentioned.


They not only enhance the system’s efficiency but also serve as a great way to achieve better and clearer communication, helping you avoid complicated and tiring tasks such as translating EDI messages on your own. They also provide easy access to your EDI data.

While their benefits are universal, these EDI tools can vary from provider to provider – some are simply better than others, and you need to be able to distinguish them to achieve maximum results.

That’s why we’ve compiled a list of four of the most important EDI tools that can assist you as you take this next step for your company:

        1. Cloud Technology for EDI

Cloud technology marks the divide between traditional and modern EDI systems. More and more companies are using cloud technology to store their EDI data compared to the classic method of storing data in a physical location, which requires significant expenditure on additional hardware and software.

With the help of cloud technology for EDI, companies gain unparalleled access that allows them to monitor and interact with data from anywhere – all they need is a decent internet connection. Because they don’t store the data in a physical location within their own company, firms also avoid the risk of losing it due to natural disasters or other unfortunate situations.

        2. An EDI VAN (Value-Added Network)

The transmission of messages took a new turn when EDI VAN networks became available in the market. These networks provide a higher level of security for EDI data, offering companies the peace of mind they need to continue doing business without worry.

Of course, there will always be companies that quickly adapt to new technologies – in this case, we’re talking about some companies that have transitioned to using newer technologies and no longer use VAN networks.

However, by choosing this option, companies face a significant challenge: to harness the full potential of EDI technology, they must use EDI services separately. Most companies still use an EDI VAN network, and chances are your company will need such a network, regardless of the industry you operate in.

        3. The EDI Data Translator

You’re probably already familiar with the fact that EDI is built on standardized formats. What does that mean exactly? These formats help structure data to be optimized for exchange between companies, all while ensuring maximum data security.

This is where EDI data translation comes into play – it’s the software that makes this data usable by segmenting it, converting it into business documents that companies can use, and identifying the sender and verifying their identity. After the document is sent, the sender also receives a notification confirming that the document has safely and timely reached its destination.

You can’t have an EDI system without the right data translation software. Without the right software, you’ll notice the difference in the extra time you have to invest in the process, time that could be used for much more important tasks. The best solution is to choose a translation tool that handles everything for you.

        4. An EDI web portal that can be used by anyone

Whenever you work with EDI data, you’ll also need the ability to access and manage the recorded transactions according to your needs. Companies can also turn to the traditional route – an EDI management software that works well and efficiently, providing you with all the necessary information. However, this is software that ties you to a physical location – you’ll need your computers to access this software.

Nonetheless, there is also the option to work with a web portal for your EDI needs. You only need an internet connection to access all the required information. You can be connected to your supply chain in real-time, even if you’re not at your computer – in fact, you can access the information from any device. This gives you the ability to respond quickly and make the necessary decisions to address various situations.

After reading this list, you’ll have a clearer understanding of what it means to have a modern EDI system. These factors should be considered when selecting an EDI provider.