SYS-CON MEDIA Authors: Noel Wurst, Liz McMillan, Sean Houghton, Glenn Rossman, Ignacio M. Llorente

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NewEDI-Sponsored Research Examines State of Electronic Data Interchange in U.S.

More EDI Investments Planned as Average Implementation Costs Drop 16 Percent

ALPHARETTA, GA--(Marketwired - June 10, 2014) - NewEDI today released research results from a study titled "Current Status of Electronic Data Interchange in the U.S." The study focuses on current uses of Electronic Data Interchange (EDI), reasons for adoption and strengths and weaknesses of current EDI providers/Value-Added Networks (VANs). Visit NewEDI.com to download a summary of the study.

The study is based upon research conducted by Professor Richard Vlosky of Louisiana State University which surveyed 780 companies representative of over two dozen manufacturing and service sectors. Of these companies, 60 percent currently utilize some form of EDI service or technology:

  • 25 percent use Internet EDI exclusively (AS2 or EDIINT) with no plans to invest in VAN
  • 29 percent use one or more VANs
  • 37 percent use both VAN and Internet EDI
  • 9 percent use Internet EDI but have plans to use EDI VAN in the future

Companies still face customer mandates and consider future investments in Internet-based EDI or Value Added Networks.   

"Widespread adoption of EDI is believed to increase the economic welfare of an industry or a network of companies in a supply chain," said Dr. Vlosky. "By understanding the factors affecting Value-Added Network (VAN) selection, companies can more effectively evaluate potential EDI providers, and EDI solution providers can better understand and serve the needs of the market."

"EDI remains a valuable technology solution for the growing challenges companies face in supply chain operations and business partner relationships," said Kevin Rathie, CEO of NewEDI. "The study indicates that small and mid-sized businesses need help navigating the complexity of available EDI options to find the right solutions at the best possible price. NewEDI is here to help under-served, over-charged companies realize the organizational benefits of frictionless commerce."

Average Implementation Costs Drop for both Small and Large Enterprises

Compared to 2010, companies with less than $10 million in revenue saw initial implementation costs drop 17 percent in 2013 while companies earning over $500 million saw costs drop 15 percent. This decrease in implementation costs might favor smaller companies faced with a higher number of trading partners.

----------------------------------------------------------------------------
            Company Revenue                Average # of Trading Partners    
----------------------------------------------------------------------------
         Less than $10 million                          97                  
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           $10 - $49 million                            53                  
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           $50 - $99 million                            38                  
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          $100 - $249 million                           22                  
----------------------------------------------------------------------------
          $250 - $499 million                           14                  
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         $500 million or more                           57                  
----------------------------------------------------------------------------

Top VAN Selection Criteria

"Customer Support and Responsiveness" tops the list of criteria that organizations value when selecting a technology partner to support their critical business-to-business communication requirements.

Download Free Copy of EDI Summary Report

Visit newedi.com/free-edi-van-report/ to download a complimentary copy of "Current Status of Electronic Data Interchange in the U.S."

Register for Live Webinar, Q&A - 2:00 EDT, July 8, 2014

NewEDI will host a webinar at 2:00 p.m. EDT on Tuesday, July 8, 2014 where Dr. Vlosky will present more in-depth findings from the 2013 study and discuss changes that have taken place since 2010.

Register for Webinar

  • "State of Electronic Data Interchange in the U.S."
  • Presenter: Professor Richard Vlosky
  • Tuesday, July 8
  • 2:00 - 3:00 EDT

In-Depth Analysis with Dr. Vlosky on "Intersections with NewEDI" Podcast

Dr. Vlosky was a recent guest on "Intersections with NewEDI," a forum for thought leaders to discuss different approaches for solving supply chain challenges with data, where he outlined his thoughts on the opportunities in the EDI VAN market. Listen to the podcast on NewEDI.com. Download the interview from iTunes or on your Android device.

About NewEDI

NewEDI is a consolidator of world-class, Electronic Document Interchange Value-Added Network (EDI VAN) services. NewEDI secures volume rates with top service providers to offer an easy-to-purchase, affordable and high-quality EDI VAN service.

The NewEDI VAN services are built on industry standards, secure communication protocols and reliable infrastructure (99.9% up-time, SLAs). NewEDI supports AS2, FTP, async and bi-sync protocols and can manage all trading partner connectivity.

Our innovative, web-based purchase process ensures customers don't pay for sales and administrative costs. Our "Name Your EDI Price" process is intuitive, simple and guides buyer to make an informed price offer to lock in the lowest possible price for EDI VAN services.

Find out "How It Works."

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