I don't disagree with Dan at all, but I did notice the word "small" in
your
original question. There are many companies out there, including ours,
that
provide EDI via web access, which is much less expensive than the
scenario
Dan has put forth. By allowing the small supplier to either use a web
form
for data entry, upload a simple text file or any application output, the
"EDI intermediary" takes on the tasks of mapping (if needed), training,
the
total costs of EDI expertise and most of the infrastructure costs, as
well.
If you, as a customer, feel the value of receiving data using EDI is
worth it
(and who on this list won't champion that?)Â you can even offer to absorb
or
subsidize this type of service for your suppliers/trading partners.
I am not a sales person, just an EDI techie, but I do see this type of
"web EDI" as a true boon to those of us who've had to answer the
questions
"Why is it taking so long to get our suppliers on EDI????" and "Do I
need a
computer to do EDI?"
>From the trenches,
Leah
Â
Chandrashekar,
I'd like to echo and amplify what has been said already.
First, you'll have to determine how integrated your EDI system
is to
be. "Rip and Run" is cheap, as mentioned before. Next most expensive
is
producing flat files for input to your business systems. Finally, most
expensive is an EDI system that is integrated with your business systems
and
produce proprietary format files for things like SAP, etc.
Second, you have to determine your coverage hours and what
staffing
you need, including consultants. The only EDI consultants we've ever
hired
cost us $1,000 US per day plus expenses.
Third, who is going to do the mapping and trading partner
maintenance? Those people must be included in your budget. Don't
forget
training and the training costs for your people.
A VAN is the most expensive alternative you have. An industry
VPN,
like ANX for the Automotive industry or IDX for the Electric Supplies
industry will be the next cheaper. Direct dial in to your partner will
be
cheapest. For IDX we pay a flat fee per month, plus 4.5 cents per
kilocharacter.
As far as EDI software goes, do you have an existing platform
for
it? NT, UNIX or Mainframe? Are those costs in your budget? What
communications method are you going to use, Async or BiSync? Do you
have
the software to facilitate your communications such as CLEO?
Based on your volume, do you need just a regular telephone line,
a
T1, or frame relay? That cost has to be in your budget.
I've probably missed a few things, but the list members will be
kind
enough to correct me.
----- Original Message -----
From: "Chandrashekar T S (BanW/BKA-C)"
> We are trying to get an estimate of what it costs a small trading
partner
to
> invest in an EDI system and what thier running costs would be,
including
the
> costs of data transmission.
>
> I would be happy to recieve some rough estimates for the purpose of
planning
> an EDI budget.
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