I'd like to add some clarification to some comments made by members:
" A VAN is the most expensive alternative you have"
This is not always the case and the current rates that VAN's are charging
have dropped dramatically. I conducted an online survey recently and a
majority of users are paying 16 cents or less without monthly charges.
It is very much situation dependant. If Translation software is required,
then the provider should provide the support, mapping, etc as part of the
price. Not all of us have forgotten about SERVICE. If that provider is
also a VAN, chances are you'll receive a good rate but it will be based on
volume.
As for integration into your host system - most major systems are already
supported and any delays or high costs are typically associated with
unknown, or customized programs.
Finally, there are many internet solutions that may just suit your situation
and Trading Partners. They are usually less expensive then the upfront
software costs, but may have other limitations.
Bottom line is the stereotype of VAN's and EDI is not nearly as expensive
and difficult as it may have been in the past. In fact it is still a solid
solution over new and highly promoted alternatives.
Survey results can be viewed at:
http://www.commport.com/sales_van_survey.asp
Derrick Hammett
Director of Sales & Marketing
Commport Communications International, inc.
41 Industrial Parkway S., Unit #2
Aurora, Ontario, Canada, L4G 3Y5
Phone: 905-727-6782 Fax: 905-727-7251
-----Original Message-----
From: Dan Mehlhorn [mailto:[EMAIL PROTECTED]]
Sent: Wednesday, June 13, 2001 9:39 AM
To: [EMAIL PROTECTED]
Subject: Re: EDI VAN Charges.
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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