Electronic Data Interchange (EDI) is a critical component of modern supply chain management. It enables businesses to exchange critical information with their trading partners in a standardised electronic format. Traditionally, EDI solutions are deployed on-premise. However in recent years, there has been a growing trend towards cloud-based EDI solutions. In this blog, we will explore whether it is time for your business to move away from your legacy on-premise EDI solution and consider the benefits of cloud-based EDI.
What is on-premise EDI?
Let’s start by understanding what an on-premise EDI solution is. On-premise EDI is a software solution that is installed and maintained on servers located within the company’s premises. This means that the business is responsible for the infrastructure, security, and maintenance of the EDI system. On the other hand, cloud-based EDI is hosted in the cloud by a third-party provider. This means that the provider is responsible for maintaining the infrastructure, security, and maintenance of the EDI system.
Advantages of cloud-based EDI
One of the main reasons why businesses are moving away from on-premise EDI solutions is the cost. On-premise EDI requires significant upfront capital investment for hardware and software, as well as ongoing maintenance costs. In contrast, cloud-based EDI solutions are typically priced on a subscription basis. This means that businesses can pay for what they use and scale up or down as needed. This can be particularly beneficial for businesses with fluctuating demand.
Another huge advantage of cloud-based EDI solutions is scalability. On-premise EDI solutions have a finite capacity, which means that businesses need to invest in additional hardware and software if they want to expand their EDI capabilities. This can be a slow and costly process. With cloud-based EDI solutions, businesses can scale up or down as needed with just a few clicks. This makes it easy to respond to changes in demand or to add new trading partners.
Cloud-based EDI solutions also offer greater flexibility. On-premise EDI solutions typically require businesses to manage their own infrastructure, which can be time-consuming and complex. With cloud-based EDI solutions, businesses can focus on their core competencies while leaving the infrastructure management to the provider. This can free up resources and enable businesses to be more agile and responsive to market changes.
Conclusion
So, for the question of whether it’s time for your business to move away from its legacy on-premise EDI solution. If your business is still using an on-premise EDI solution, it may be time to consider making the switch to the cloud. The trend towards cloud-based EDI solutions is driven by a desire for greater flexibility, scalability, and cost-effectiveness. Cloud-based EDI solutions can offer significant benefits, including reduced costs, increased scalability, greater flexibility, and improved security. By making the switch, your business is therefore better positioned to compete in today’s fast-paced and ever-changing business environment.
About B2BE
B2BE delivers electronic supply chain solutions globally, helping organisations to better manage their supply chain processes, providing greater levels of visibility, auditability and control. We’re driven by a passion for what we do, inspired by innovation, and underpinned by a wealth of knowledge. With over 20+ years of experience, the B2BE teams operate worldwide.
For more information, visit www.b2be.com.