How do you evaluate the value of your EDI system?

1 Define your goals

Before you can measure the value of your EDI system, you need to define what you want to achieve with it. What are your business objectives and how does EDI support them? For example, do you want to increase your sales, reduce your inventory, improve your cash flow, or enhance your compliance? How do you quantify these goals and track your progress? You should have clear and realistic key performance indicators (KPIs) that align with your EDI strategy and reflect your desired outcomes.

2 Assess your costs

One of the main benefits of EDI is that it can help you reduce your operational costs by eliminating paper, manual data entry, errors, and delays. However, EDI also involves some costs, such as software, hardware, maintenance, training, and integration. You should have a clear picture of your total cost of ownership (TCO) for your EDI system and compare it with the savings and benefits you generate. You should also consider the opportunity costs of not using EDI or using an outdated or inefficient system.

3 Evaluate your performance

Another way to evaluate the value of your EDI system is to look at how well it performs in terms of speed, accuracy, reliability, and scalability. How fast can you process and exchange documents with your trading partners? How often do you encounter errors or exceptions that require manual intervention or correction? How reliable is your EDI system in terms of uptime, security, and compliance? How easily can you add new trading partners, transactions, or formats to your EDI system? You should monitor and benchmark your performance metrics and identify any gaps or issues that affect your value proposition.

4 Solicit feedback

One of the most important sources of information for evaluating your EDI system is the feedback from your internal and external stakeholders. How satisfied are your customers, suppliers, and employees with your EDI system? How does it affect their experience, satisfaction, and loyalty? How does it help them solve their problems, meet their needs, or achieve their goals? You should solicit feedback regularly and systematically, using surveys, interviews, focus groups, or other methods. You should also analyze the feedback and act on it to improve your EDI system and value delivery.

5 Compare alternatives

Finally, you should compare your current EDI system with the alternatives available in the market. How does your system stack up against the best practices, standards, and trends in EDI? How does it compare with the systems used by your competitors or peers? What are the advantages and disadvantages of your system versus other options? You should conduct a SWOT analysis (strengths, weaknesses, opportunities, and threats) of your EDI system and explore the potential benefits and risks of switching or upgrading your system.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?