How to Explain EDI to Your Boss (and Secure Funding for Your Next Project) (2024)

If you're an experienced EDI manager, you understand EDI’s role in seamless business operations. And you know how challenging it can be to convince non-technical decision-makers to invest in modern EDI solutions.

But what if you’re new to EDI? And you’re now responsible for managing your company’s EDI system, internal team, outside vendor—or all of the above?

Either way, EDI managers, you’re the EDI champion. You need to be able to make a compelling case for system upgrades or at least the services of an SME who can come in, run deep diagnostics, and give you an actionable roadmap to optimize your current environment.

EDI has been a cornerstone of efficient data exchange for decades and remains the backbone of global supply chains. Yet many companies still rely on legacy systems that struggle to keep up with today's demands.

The Business Case for Modern EDI

Here's how outdated EDI tools can hinder your business:

• Limited Visibility: Legacy systems may not provide the real-time insights needed to track inventory levels, monitor shipments, and anticipate potential disruptions. This lack of visibility can lead to stockouts, delays, and missed opportunities.
• Inefficiency and Errors: Manual data entry and outdated processes associated with older EDI systems can be prone to errors and inconsistencies. This can lead to costly rework, slow down operations, and damage customer relationships.
• Scalability Limitations: As your business grows, your legacy EDI system may struggle to handle increased transaction volumes and data complexity. This can hinder your ability to scale operations and expand into new markets.
• Compliance Challenges: With ever-evolving regulations and data security threats, outdated EDI systems might not have the robust security features or compliance capabilities needed to protect sensitive information.

The Benefits of Modern EDI Solutions

Modern EDI solutions offer three main advantages over legacy systems:

• Streamlined Integrations: Modern EDI integrates seamlessly with other business systems like ERP and WMS software. This enables automated data flow and streamlined workflows.

• Hybrid Deployment Options: Virtual/cloud-based and hybrid-based deployment capabilities give companies options for a modern EDI environment beyond traditional on-premises deployment.
• Enhanced Data Security: Modern EDI solutions prioritize data security and offer features like encryption and access controls to ensure the safety of sensitive business information.

Building Your Case for EDI Investments

We’ve highlighted the limitations of outdated EDI and outlined the benefits of modern solutions. But how do you move from a high-level overview to closing the sale? Here are four pro-tips that can help you make a convincing case:

1. Gather Data: Don't make claims without evidence. Document the specific limitations of your current system and how they negatively impact your operations. Quantify the costs associated with errors, delays, and missed opportunities due to outdated technology.
2. Tailor Your Message: Understand your decision-maker's priorities. Focus on how modern EDI aligns with their overall business goals. For example, if they prioritize efficiency, highlight how automation can save time and resources.
3. Quantify the Benefits: Whenever possible, translate the advantages of modern EDI into numbers. For example, estimate cost savings or increased efficiency gains. Partner with sales leadership to project potential revenue growth associated with system upgrades or external expertise.
4. Highlight Futureproofing: Modern EDI is an investment in the future. A robust and flexible system allows you to adapt to changing industry trends and integrate with new technologies. More importantly, it helps ensure you stay competitive going forward.

Download our Slide Deck, “What is EDI?”

By effectively communicating the value proposition of modern EDI you increase your odds of securing the resources you need to modernize your systems and optimize your operations.

At the same time, EDI is difficult to explain to those who don’t deal with it every day. So, we have distilled EDI down to ten slides that explain, in a highly visual way, the following: What EDI is, how it works, and why companies can no longer go to market with legacy EDI systems.

Download "What is EDI? (And Why Companies Should Understand, Embrace and Fund It)” now to help you make a strong business case for EDI investments.

Conclusion

Modern EDI is no longer just a tool for data exchange; it's a strategic asset that empowers businesses to thrive in the digital age. By building a strong case for investment and leveraging the right communication strategies, you can convince your boss and other stakeholders of the essential role modern EDI can play in your organization.