We analyzed the top EDI software and providers using our review methodology. These include options like SPS Commerce Cloud EDI, TrueCommerce, and CData Arc.
EDI is a communication protocol for requesting documents and data from third parties. These can include purchase orders, invoices, shipping notifications, or any other business transaction shared from one computer to another.
- SPS Commerce Cloud: Best Overall
- TrueCommerce: Best ERP Integrations
- CData Arc: Most Flexible Option
- IBM Sterling B2B Integrator
- SEEBURGER
- Cleo Integration Cloud
- OpenText Freeway Cloud
- eZCom Software
- BSI EDI
- Radley EDI
1 SPS Commerce Cloud - Best Overall
Why We Chose It: We picked SPS Commerce Cloud because it connects with over 500,000 trading partners like Walmart, ShipBob, and Amazon. The software syncs easily with a wide array of vendors, suppliers, and customers without setting up individual EDI connections for each entity. We also like that SPS Commerce Cloud provides a list of over 1,000 pre-qualified 3PLs, vetted for service and reliability.
SPS Commerce Cloud EDI extracts and delivers data to each trading partner in the required format, including EDI 832 document, flat file, spreadsheet, and API. This makes it easy to communicate with partners, regardless of the technological maturity or specific requirements of each.
Additionally, SPS Commerce Cloud integrates with over 200 software systems, including NetSuite, Microsoft Dynamics 365, QuickBooks Online, and Sage 50cloud. Overall, it’s a solid fit for medium to large businesses in retail, logistics, and manufacturing. However, we should mention that the system depends on third-party services like Amazon Web Services, meaning any downtime with AWS can directly impact its availability.
2 TrueCommerce - Best ERP Integrations
Why We Chose It: TrueCommerce made our list for its strong ERP integrations, including Acumatica, QuickBooks Desktop Enterprise, SAP Business One, and Sage Intacct. It’s praised for being an accessible entry point for those new to EDI, with easy setup and implementation processes. Additionally, we like that TrueCommerce connects with over 92,000 business partners like Target, eBay, FedEx, and Home Depot.
The platform’s transaction manager tool facilitates easy translation and document management, such as invoices and purchase orders. It also provides capabilities beyond just EDI, including fulfillment, inventory control, and digital storefronts. However, our research shows that users find the system click-intensive and slow at times.
3 CData Arc - Most Flexible Option
Why We Chose It: CData Arc, now known as ArcESB, offers strong features for EDI and managed file transfer (MFT). We like its no-code, drag-and-drop interface, simplifying the setup and customization of data flows. Additionally, the platform supports many data formats, including EDI standards like X12, EDIFACT, HL7, and FHIR.
CData Arc helps companies handle their data interchange internally rather than relying on third-party services. This control is extended through customizable scripting options, which cater to more technical users who wish to fine-tune their integrations. However, we found its extensive feature set can introduce complexity for some users. This is especially true when deciding among multiple integration options.
4 IBM Sterling B2B Integrator
Why We Chose It: IBM Sterling B2B Integrator made our list because it syncs complex B2B and EDI processes across partner communities. It offers a flexible platform that supports several communication protocols and data transformation, designed to handle up to 10 million transactions per day. IBM Sterling provides high availability and security, great for running operations smoothly even under demanding conditions.
The system speeds up installation and updates with containerized software apps ready for immediate use. These pre-configured, certified containers streamline the deployment process and enhance scalability and security. However, our research also shows that the system has a bit of a learning curve for newcomers. Some reviewers also mentioned delays in customer support responses.
5 SEEBURGER
Why We Chose It: We added SEEBURGER because it’s a comprehensive business integration suite (BIS) catering to various integration needs like EDI, API management, and MFT. We especially liked its versatility in deployment options, allowing users to choose between on-premise, cloud, or hybrid setups. Plus, its EDI converter and mapping tools enable data transformation and integration, supporting many formats from generic XML, JSON, and REST APIs to EDI document standards like UN/EDIFACT.
SEEBURGER provides secure handling of data transfers, useful for complying with strict data protection regulations like GDPR. The system ensures that all file transfers are governed by stringent policies, which helps maintain the integrity and security of data exchanges. The platform offers extensive community management functionality, simplifying the onboarding process for new partners and maintaining high data quality.
We should note that managing SEEBURGER may require trained staff since it’s highly customizable to fit the specific needs of customers and partners. So it’s helpful to have someone on your team who can grasp each customer’s unique requirements and adjust the platform settings accordingly.
6 Cleo Integration Cloud
Why We Chose It: Cleo Integration Cloud is a top pick for its strong customer support system. This is particularly beneficial for businesses that need ongoing, complex data integration. The platform allows customers, partners, and suppliers to easily set up and manage their integrations using a self-service portal. Additionally, Cleo offers expert services to help users update or merge their systems.
The platform supports transformations between various data formats, such as EDI, XML, and older formats. Cleo Integration Cloud can be set up on-premise, in the cloud, or a combination of both, providing flexibility in deployment. It is certified by the Drummond Group, ensuring secure data exchanges.
However, some users have reported that the system can be challenging to learn and may experience slow backups and downloads. Also, the cost can become a concern for some businesses, particularly when expanding the system’s use.
7 OpenText Freeway Cloud
Why We Chose It: We found OpenText Freeway Cloud best for small to medium-sized businesses simplifying their entry into EDI without extensive prior knowledge. It’s designed to help SMBs engage effectively in digital commerce by facilitating the exchange of critical business documents like orders, invoices, and advanced shipping notices with larger trading partners.
OpenText Freeway Cloud includes a library of pre-built data maps and forms to connect quickly and easily with strategic customers, such as Costco, CVS, and Nordstrom. We found it easy to exchange any message type using EDI standards, including ANSI, XML, EDIFACT, and Tradacoms, and communications protocols like AS2, FTP, and SFTP. It also integrates with over 200 systems like Microsoft Dynamics 365 and SAP Business One.
8 eZCom Software
Why We Chose It: eZCom Software, particularly its Lingo platform, makes it easier for companies to link to web stores and establish relationships with major retailers that require EDI processing. It offers a cloud-based system that effectively manages and processes orders, acknowledgments, shipments, and invoices.
We like that Lingo’s interface is fairly intuitive and can handle a high volume of transactions. Our search shows that users find customer service responsive and helpful. This is helpful for businesses with complex EDI requirements looking for reliable support when issues arise.
However, we found that while the system is generally efficient, it has limitations. The number of documents like GS128s that can be printed in a single batch is limited. Moreover, some find that the system can be less intuitive when searching for specific functionalities or navigating through its many features.
9 BSI EDI
Why We Chose It: We found BSI EDI quite versatile in handling formats like US ANSI X12, EDIFACT, and XML. We found its data mapping capabilities strong. BSI EDI also has built-in tools that facilitate compliance and automation, such as ASN compliance through its shipment builder.
Users appreciate the software’s reliability and the support provided, though it requires some initial setup and familiarization. Overall, we found the system scalable. It also integrates with existing ERP systems, offering functionalities like automated tax transactions and XML document translation. These platforms include QuickBooks Online, Odoo, Acumatica, and Macola.
10 Radley EDI
Why We Chose It: We like that Radley EDI provides a configurable dashboard, comprehensive translation capabilities, and communication tools. This helps facilitate efficient data exchanges between trading partners. Radley EDI offers automatic updates to ensure real-time compliance and integrates seamlessly with existing ERP systems like IFS Applications, Epicor Kinetic, and Infor CloudSuite Industrial.
We found Radley EDI best for industries like automotive with intricate supply chain requirements. This system includes a feature that allows you to monitor EDI transactions and processes. However, it requires an on-premise installation, which means you’ll need specific types of servers and sufficient physical space. Additionally, setting up and integrating Radley EDI into your existing systems will require technical support.
What Is EDI Software?
Electronic Data Interchange (EDI) software is a technology that facilitates the exchange of business documents from one computer to another in a standard electronic format between trading partners, allowing them to work together efficiently. Thousands of standard business documents can be sent automatically through the EDI software. Some common examples include shipping statuses, invoices, purchase orders, inventory documents, and customs information.
EDI technology eliminates manual B2B communications, allowing companies to save time and money across the supply chain, increase processing speed, reduce errors, improve collaboration between trading partners, and increase customer satisfaction and loyalty. Because EDI is entirely paperless and requires little to no human intervention, business documents flow directly from the sender’s computer system (e.g., a logistics system or an enterprise software) to the recipient’s computer system (e.g., an order management system).
Features of EDI Software
| Feature | Description |
|---|---|
| EDI translation | Identifies the data necessary to write, retrieve the necessary information from any corresponding system (ERP or sales order, for example), arranges the data in a structure that the vendor can understand (meets the format of their system or a pre-agreed upon order structure), and send the request to the vendor |
| EDI mapping | Translates information to a more easily used format in new environments. This includes flat-file, XML, JSON, CSV, and EDIFACT. |
| Secure transactions | Use of protocols such as Secured FTP and HTTPS to secure communication and keep your transactions between the involved parties. |
| Third-party integrations | Enables seamless connectivity and data exchange between EDI systems and external applications such as ERP, CRM, and accounting software. |
EDI File Formats
EDI file formats define the structure and format of data that can be electronically exchanged between businesses or organizations.
| Document | Description |
|---|---|
| ANSI ASC X12 | A widely used EDI standard in the United States, governing transactions for industries such as finance, insurance, transportation, and government. |
| EANCOM | A subset of the EDIFACT standard tailored specifically for retail and consumer goods industries. |
| EDIFACT | A global EDI standard that is extensively used in international trade, covering a variety of industries from shipping to finance. |
| FHIR | Stands for Fast Healthcare Interoperability Resources; it’s a standard for healthcare data exchange, focusing on ease of implementation. |
| HIPAA | Specific EDI standards adopted under the US Health Insurance Portability and Accountability Act, primarily for the healthcare sector. |
| HL7 | Health Level 7 refers to a set of international standards for the exchange, integration, sharing, and retrieval of electronic health information. |
| ODETTE | A standard used primarily in the European automotive industry for various business communication purposes. |
| RosettaNet | A collection of standardized XML-based business documents tailored for the technology sector, particularly for electronic supply chain transactions. |
| SWIFT | A messaging network banks and other financial institutions use to quickly, accurately, and securely send and receive information, such as money transfer instructions. |
| Tradacoms | An early standard primarily used in the UK retail sector but largely replaced by newer standards like EDIFACT. |
| UBL | Universal Business Language designed to facilitate the electronic interchange of business documents in an open, standard XML format. |
| VDA | A set of standards developed by the German automotive industry for data exchange between automotive manufacturers and suppliers. |
| VICS | A standard developed for the Voluntary Inter-industry Commerce Solutions Association, largely used for North American supply chain and retail industry transactions. |
Benefits of EDI Software
EDI has been around since the late 1960s, and the benefits have proven dramatic. Here’s a look at some of the benefits of EDI software:
| Benefit | Description |
|---|---|
| Improved speed | Accelerate the business cycle by about 61 percent. EDI messages can be sent automatically using pre-configured workflows, so transactions between trading partners can be completed in just a few minutes rather than days or weeks. |
| Increased accuracy | Processing transactions manually has a greater risk of human error, which can greatly affect your business. Experts estimate that data quality problems cost U.S. companies approximately $3 trillion per year. EDI can deliver around a 30 to 40 percent reduction in transactions with errors. |
| Reduced transaction costs | Decrease your transaction costs by about 35 percent. EDI software saves up to millions of dollars annually for buyers handling numerous transactions due to early payment discounts. |
| Better customer experience | Ensure the synchronization of expectations between the seller and the buyer, thereby reducing ambiguity between parties and achieving higher customer satisfaction. Some estimates suggest that EDI can decrease the order-to-cash cycle time by about 20 percent, improving business partner transactions and relationships. |
| Improved inventory management | Inventory management is crucial, affecting every area of your business - from the warehouse floor to customer support. You can easily increase your supply chain visibility by automating the process of exchanging business documents. EDI has a tracking feature that allows you to determine your inventory and where it is easily. And because EDI provides real-time updates, you can effectively allocate your resources, prevent shortages, and virtually eliminate excess inventory. |
What Does Your Business Need?
Whether your company is a small business, a nonprofit organization, or a multinational corporation, you must have an accurate, efficient, and timely way to exchange business documents with your trading partners. This means the integration of EDI solution into your current B2B communication system. Without an EDI-based system, passing orders and other documents to trading partners is costly, time-intensive, and error-prone.
There are many different types of EDI, including:
- Direct EDI: Also known as point-to-point, this method involves directly exchanging EDI documents between two business partners without an intermediary service.
- Web-based EDI: This type of EDI uses internet protocols to enable the exchange of business documents, making it accessible through standard web browsers.
- EDI network: A networked approach where transactions are conducted through a value-added network (VAN).
- Mobile EDI: This form allows users to send and receive EDI transactions via mobile devices.
- B2B integration: This is a broader strategy that integrates EDI with other business management systems to automate transactions between companies.
Each type of EDI has its benefits and drawbacks depending on the size and need of your business.
- Startups and other small businesses: Startups and other small businesses looking to buy an EDI solution can usually get by with a web-based EDI, accessed and used via web browsers such as Google Chrome and Firefox. You can simply fill out standardized forms with the business data you want to share. Web-based EDI is often the easiest and most affordable way for small and midsize businesses to start exchanging business data with their trading partners using EDI. Also, because many web-based solutions partner with big retailers like Target and Walmart, the complexities of a typical EDI setup are reduced.
- Existing EDI users looking for additional functionalities: As your business expands and you connect to more customers, your EDI software should scale without hiring dedicated staff to manage your capabilities. If you have unclear growth plans, you may want to consider getting a cloud-based EDI to ensure limitless scalability allied to manageable and flexible pricing structures.
- Large companies: Enterprises typically handle a large volume of transactions, so they likely follow a hybrid approach in which they combine different types of EDI to make sure they are able to work with all their trading partners efficiently. Increasingly, large companies are looking to partner with reputable EDI providers that can handle the day-to-day management of their EDI systems.
Common Pain Points of EDI
While EDI holds a lot of promise, there are also some challenges. Here are some of the most common EDI issues:
- Security concerns. While EDI is well established and used across many industries and organizations, there are still issues regarding information sharing with EDI partners or third-party EDI organizations. Such issues include the lack of trust, the risk of confidential information being exposed due to security breaches, and potential legal problems due to governmental or organizational regulations.
- Application updates may cause data disruption. Some ERP systems can disrupt EDI connections, even those that worked well in the past. Customer relationship management software, enterprise resource planning programs, accounting software, and many other advanced systems may get regular updates or improvements that make them incompatible with the software used by your trading partners.
- Software integration issues. EDI solutions can bog down your IT resources or place a great training overhead on the company. Without proper training and strict compliance with the new protocol, the transition from manual document sharing to EDI can get messy. Also, because several standards are involved when implementing EDI, small businesses may find it difficult to exchange data with larger companies that use the latest version of a document standard.
- Cost of implementation and maintenance. While EDI provides huge cost savings benefits, redesigning and implementing software applications to integrate EDI into the current system can be quite costly, especially for SMBs. Maintaining an EDI system can also be costly, especially if the volume of data you are handling is growing fast.
Market Trends of EDI Software
- Increased use of cloud-based EDI. As cloud computing makes its way into a wider spectrum of enterprise activities, cloud-based EDI software is expected to increase in usage, especially among small and midsize businesses. More and more businesses today are looking to migrate connections, applications, data, and integration to the cloud. Cloud computing is changing the rules for EDI technology implementation and service consumption models.
- Mobile EDI. Mobile devices such as smartphones and tablets are changing how businesses interact with trading partners. Some companies are starting to develop applications to help mobilize their supply chain. Because corporate apps are now becoming popular, it’s only a matter of time before you can download an EDI-related mobile application from the app stores.
Choosing EDI Services and Software
Understanding EDI document flow is key to considering the different service and software offerings available to you on the market:
- A business document is created in your accounting or ERP system.
- The business document is translated from its native accounting system format into an EDI document file.
- The new EDI document is sent to the EDI VAN provider.
- The EDI VAN provider electronically delivers the document to the intended recipient’s EDI mailbox
- The document recipient translates the EDI document back into a readable business document and processes it.
Given the number of steps in the EDI document flow, it’s unsurprising that some providers focus on each step. There are also end-to-end solutions providers. Some ERP systems include EDI as an integrated module of the underlying system.
The first step of the EDI document flow is converting a business document into an EDI file. Many software solutions on the market provide EDI translation. An important consideration when reviewing EDI translation software is compatibility with your accounting/ERP software. Interoperability is the key concern when evaluating EDI translation offerings.
EDI VAN providers handle the delivery of the EDI document. The VAN provider maps the document to the recipient’s standards, provides testing services, and ensures proper file delivery.
One of the most important considerations when purchasing an EDI solution is the breadth of the service. Whether you are looking for translation software, a VAN provider to partner with, or a full ERP solution that incorporates EDI capabilities, there are many options available to your company to consider. If you want to uncover the best ones for your business, consider utilizing our free software search service.
