EDI Solutions

The standardization of EDI systems enables reliable connections with any business partner.

Electronic Data Interchange (EDI) systems have become the most widely used B2B communication standard for integrating information systems between companies. Their ability to automatically connect with different partners, together with the automation of business processes (orders, e-invoices, delivery notes, etc.), has driven the development of various EDI solutions tailored to the needs of each organization.

In this guide, we will present the different EDI solutions available (SaaS, Web EDI, In-House, and Outsourcing), explaining their operation, applications, and advantages for medium and large companies. The goal is to provide an educational and professional overview, helping IT managers, administrators, and technical profiles understand in depth which model best fits their company.

Types of EDI solutions

Not all companies have the same capabilities or exchange volumes, so EDI is not a one-size-fits-all solution. Over the years, different types of EDI solutions have emerged, tailored to the size, industry, and technological resources of each organization. These range from cloud-based EDI platforms (SaaS), which minimize internal infrastructure, to In-House solutions installed at the client’s facilities, through hybrid schemes such as Web EDI for small trading partners, or full externalization through EDI Outsourcing. In this section, we describe the characteristics of each model and the cases in which it makes sense to use them.

SaaS EDI (Cloud-based EDI)

SaaS EDI solutions (Software as a Service) operate in the cloud and are offered as a service by a specialized provider. In this model, the EDI software is implemented in a remote environment managed by the provider, which the company accesses via the Internet. All that is needed is a network connection and a web browser to use the electronic data interchange tools, where the company’s integrated EDI solution can be configured and monitored. In essence, the provider hosts the EDI platform in its data centers and keeps it running for the client.

A key feature of SaaS EDI is integration with the client’s internal systems. These cloud-based platforms usually connect with the company’s ERP or other management applications, so that data flows automatically between the ERP and the EDI solution. For example, purchase orders generated in the ERP are transmitted to the EDI portal for sending to the trading partner, and incoming EDI invoices are converted into the internal format so that the ERP can process them without manual intervention. This constant, automated exchange is made possible through secure connections (VPNs, APIs, etc.) or integration components provided by the cloud service.

Advantajes of Cloud-based EDI

Cloud model and pay per use: One of the advantages of Cloud EDI is that, being a cloud solution, it is usually contracted under a subscription or pay-per-use scheme, with periodic payments based on the transaction volume or modules used. This turns capital expenses into predictable operating costs.
No investment in proprietary infrastructure: All the technological infrastructure (servers, EDI software, communications, security, updates) is provided and managed by the provider. The client does not need to acquire licenses, hardware, or handle technical maintenance, since the provider takes care of platform development and its updates. This lowers the entry barrier and frees the company from IT burdens.
Scalability and high availability: SaaS EDI platforms are typically designed to scale easily in response to volume peaks (e.g., campaigns, business growth) without the client having to do anything. Likewise, providers guarantee high levels of 24/7 availability and support, usually established in SLA contracts (for example, EDICOM offers a guaranteed 99.9% availability), ensuring continuity of business operations.
Updates and regulatory compliance: Since the software is centralized, the provider applies regular updates that incorporate new functionalities or legal adaptations (for example, changes in standards or e-invoicing requirements in different countries). This way, the client always operates with an-up-to-date solution without having to manage upgrade projects.

Thanks to these advantages, Cloud EDI is today one of the most popular options. It is particularly attractive for companies seeking a solution that is quick to implement, flexible, and with low initial cost, or for those looking to expand electronic data interchange quickly at the international level without deploying IT infrastructure in each country. A global Cloud EDI provider can connect the company with partners worldwide and handle multiple standards (EDIFACT, X12, UBL, XML, etc.) from a single platform. In short, SaaS EDI provides total integration of EDI flows with corporate systems, leveraging the benefits of the cloud in terms of simplicity, security, and performance.

In-House EDI (Internal or On-Premise EDI)

In-House EDI solutions are the traditional model, where the company installs and operates its own EDI platform on its premises (on-premise). This involves deploying the necessary hardware and software infrastructure on the organization’s servers, taking on internally all the components of an electronic data interchange solution. In other words, the company is responsible for setting up servers, databases, EDI applications, communication links, etc., to be able to exchange documents with its trading partners.

Implementing in-house EDI requires consideration of several elements. First, a robust physical and logical architecture is needed: application servers and databases capable of processing large transaction volumes, with adequate storage to archive messages and backup systems to ensure service continuity. On top of this infrastructure, the corresponding EDI software is deployed, which typically includes:

An EDI B2B messaging client to monitor the status of sent/received documents and manage operational aspects (users, digital certificates, alerts, etc.).

An application integrator that orchestrates the connection between the EDI platform and internal systems (for example, automatically inserting an EDI purchase order into the ERP, or extracting an invoice from the ERP to transform it into EDI).

Data mapping and translation tools, responsible for converting documents between the company’s internal format and the required EDI standards (EDIFACT, XML, ANSI X12, etc.). This ensures, for example, that a delivery note generated in the ERP is converted into the EDIFACT standard for sending to the customer, or that a purchase order in X12 format is transformed into a format the ERP can process.

EDI communication services, necessary to send and receive messages through specific protocols (e.g., AS2, SFTP, OFTP, or connections to contracted VAN networks). These components handle the security and routing of data between the company and its partners.

Beyond the technical infrastructure, a successful in-house solution requires assigning a specialized human team. EDI transactions are often critical to the business, so the company must have IT professionals dedicated to ongoing platform maintenance, incident resolution, handling new mappings or partners, and other tasks.

Advantages and considerations of In-House EDI:

Full control: The company has complete control over its EDI platform since it resides within its own infrastructure. Processes can be customized, priorities defined, and data kept internally if required by corporate security policy or industry regulation.
Independence from the provider: Unlike SaaS, there is no dependence on a third party for daily operations (although support from the EDI software vendor may still be needed). This avoids recurring subscription costs but means the company must bear licensing, staffing, and maintenance costs on its own.
High initial and operating costs: On-premise deployment requires significant investment in servers, software, security, certifications, and staff training. It also generates ongoing costs for support, updates, and scalability. This model is typically viable for large corporations with sufficient resources and transaction volume to justify the investment.
Technical complexity: A local EDI environment incorporates multiple technological components that must work in harmony. Managing integrations with several partners, different standards, and diverse protocols increases complexity. For example, adding a new trading partner may require developing additional mapping rules and configuring new communication links, all of which fall on the internal team.

The conclusion is that this operational model of EDI is on the path to extinction and rightly so. The main reason a company may still choose this approach is to impose physical security measures on access to its data and to control even the servers where the data is stored and processed. However, with today’s technology and the security measures of a major EDI provider—in its facilities, servers, and communication protocols that single reason loses all relevance. Today, anything other than adopting a SaaS solution simply increases costs and complexity in an electronic data interchange environment.

Web EDI (Web Portals for EDI)

To understand what Web EDI is and how it works, it’s important to know that it is a solution designed for companies that need to exchange a small volume of EDI documents and do not have direct integration with an ERP or internal system. It essentially consists of using a web portal provided by an EDI provider, where the user can send and receive electronic messages through online forms. In other words, the EDI information is entered manually on a web page instead of being generated from an internal application.

Web EDI solutions are often used as a low-cost alternative for SMEs or to connect small suppliers and customers who do not have their own integrated EDI system. For example, a large company may offer an EDI portal to its small suppliers so they can upload their invoices or order confirmations. On the supplier’s side, all they need is a browser and Internet access to participate in electronic exchange, without installing specialized software or developing integrations. This facilitates the digital inclusion of all supply chain participants.

How does it work in practice? The Web EDI user logs into the portal and can view the EDI documents their trading partner has sent (translated into a readable format on screen, typically a form-style view of a purchase order, for instance). Likewise, to respond or issue a document, the user fills out a web form with the necessary data—for example, creating an invoice by completing fields such as amount, description, etc.—and upon submission, the portal converts that information into the appropriate EDI standard and delivers it to the recipient. Similarly, when the company receives an incoming document, the portal displays it to the user in a readable way and may also allow it to be downloaded in PDF or another format.

Features and uses of Web EDI:

Simple implementation: It does not require integration projects or the installation of complex systems. By registering users on the web platform, it is already possible to start exchanging documents. It serves as an entry point into the world of EDI for companies that are new or have limited technological resources.
Minimal investment: It is generally contracted as a low-cost subscription service or even free for certain users (sometimes large companies provide the portal to their suppliers at no cost to ensure adoption). There is no need to invest in hardware or expensive licenses.
Manual operation: The downside is that it is not automated with the user company’s internal systems. Each document requires a human user to manually input or extract data. This makes it unfeasible as transaction volume grows, since delays and typing errors may occur. Therefore, Web EDI is recommended for low or occasional transaction flows.
Limited functionalities: Portals usually allow basic transactions (sending/receiving purchase orders, shipping notices, invoices, etc.), but may lack advanced integration features. However, many EDI portals do provide conveniences such as preloaded templates, product catalogs, field validations, and basic traceability (confirmation that the recipient opened or accepted the document, for example).

In summary, Web EDI is the right solution to quickly and cost-effectively include small or occasional trading partners in electronic exchange. It can also be useful in the early stages of a pilot EDI project. However, as a company’s exchange volume grows or it seeks full efficiency, it typically migrates to automated EDI integration (either through SaaS or an internal implementation), since avoiding manual re-entry of data is key to achieving greater automation benefits.

Outsourcing EDI (Managed EDI Services)

Finally, Outsourcing EDI is a model in which the company completely outsources the management of its EDI platform to a specialized third party (an EDI service provider). Unlike SaaS EDI, which primarily externalizes the technological infrastructure, outsourcing also includes the daily operation and administration of the solution. In other words, the provider takes on all the tasks required to configure, monitor, and keep the client’s data integration solution running.

With Outsourcing EDI, the client company no longer needs to access the platform to manage anything, since the provider’s professionals assume those responsibilities, ensuring optimal performance of the solution. This covers everything from initial setup (mappings, partner connections, exchange testing) to proactive system monitoring (checking that all messages are transmitted correctly, resolving communication issues, retrying in case of failures, etc.), and ongoing maintenance (adding new partners or documents, updating formats when standards change, handling legal updates in different countries, etc.).

In practice, Outsourcing EDI usually combines a robust SaaS EDI platform with a dedicated team of provider experts assigned to the client’s account. For example, EDICOM offers this service through EDICOM Managed Services, where specialized technicians act as the company’s externalized “EDI office.” These technicians are responsible for continuous administration: onboarding new partners, maintaining integration flows, supporting trading partners, 24/7 platform monitoring, and more. For the client company, this means it can focus on its core business while entrusting EDI operations to specialists. Simply put, the provider becomes an extension of the company’s IT department in all matters related to electronic data interchange.

Benefits of Outsourcing EDI:

Dedicated specialists: The provider assigns staff with extensive expertise in EDI, standards, and protocols, ensuring professional management. This typically results in fewer errors, faster problem resolution, and quicker adoption of platform improvements.
Time and resource savings: The company does not need to maintain a large internal EDI team or continuously train it; it can cut operating costs by not keeping 24/7 staff for these functions. Infrastructure expenses are also avoided, since outsourcing typically relies on the provider’s cloud (SaaS solution).
Comprehensive service and continuous monitoring: The provider commits through SLAs to service levels (availability, response times) and permanently monitors the platform. For instance, if a transaction fails to reach its destination, the provider’s team detects it and acts before the client even needs to intervene. This ensures reliability in exchanges with all trading partners.
Operational scalability: Adding new business partners or increasing message volume is easier, since the provider has the procedures and teams to absorb that additional load (for example, by quickly activating pre-defined EDI maps for certain documents or connecting with popular retailers whose integration has already been done for other clients). The client company can grow without worrying whether its internal EDI team will be sufficient.

In summary, Outsourcing EDI is an excellent option for medium and large companies that want to obtain the benefits of EDI without diverting their own resources to its management. It is especially useful in complex environments with many international partners, multiple standards, or strict regulatory compliance, where having an expert partner makes the difference. By delegating EDI operations, the company ensures service continuity (since the provider typically has redundancy in staff and infrastructure) and gains peace of mind knowing that its critical B2B communications are in professional hands. As a result, the business can focus on its core value chain—sales, logistics, customer service—knowing that the EDI automation that underpins those processes works optimally and is supported by a dedicated team.

Comparison of the different types of EDI Solutions

In the following comparison table, we can see the differences among the various types of EDI solutions: SaaS EDI (Cloud EDI), In-House EDI, Web EDI, and Outsourcing EDI.

	SaaS EDI	In-House EDI	Web EDI	Outsourcing EDI
Data Processing	Automated	Automated	Semi-automated	Automated
ERP integration	Yes	Yes	No	Yes
Document Volume	Medium-High	Medium-High	Low-Medium	Medium-High
Service Management	Client	Client	Client	Supplier
E-invoicing	Yes	Yes	Yes	Yes
Hardware Location	Provider's data center	Client Facilities	Provider's data center	Provider's data center

Success Story: ASICS and Process Automation with EDI

The ASICS success story clearly shows the benefits of a well-implemented EDI solution. The company launched a digital transformation project with EDICOM to automate its Order-to-Cash cycle (from order to payment) and speed up the onboarding of new retailers into its distribution network.

Discover the four episodes told first-hand by ASICS!

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Conclusions

We have explored the main types of EDI solutions for companies from SaaS and Web EDI to In-House models and Outsourcing services understanding their features and applications. Each approach offers particular benefits depending on the context. There is no “one-size-fits-all” solution; the choice will depend on the company’s size, transaction volume, IT capabilities, budget, and business strategy.

For IT managers or administrators learning about this technology, it is important to evaluate the options with both a technical and operational perspective. Considerations such as ERP integration, legal compliance requirements (e.g., mandatory e-invoicing in certain countries), future scalability, and the desired level of support must be weighed when defining the organization’s EDI roadmap.

In any case, adopting EDI represents a step toward business process automation and the company’s digital transformation. The solutions described here help eliminate manual tasks, accelerate information flows, and establish more efficient and secure business relationships with customers, suppliers, and logistics partners. They also contribute to sustainability by reducing paper consumption and improving the traceability of operations.