What is needed to implement EDI?
Implementing an EDI system requires buying any necessary hardware, a communications modem, and appropriate EDI software, which ranges in cost from $1,500 to $10,000, depending on the computer platform and functionality. It is necessary to sign up with a VAN, which typically requires an initial sign-up fee. Also, there is a monthly maintenance fee, plus transmission charges with potential discounts for volume. Additionally, there are the ongoing costs for support and personnel. Many companies initially hire a consultant to handle the task of integrating the EDI software with their existing applications. Technically there are three main components, which must be addressed before electronic trading can commence – Standards, Software, and Communications. back to top Standards EDI standards define the structure of the data that make up the electronic equivalents of paper based documents. In other words, there are standardized methods for describing the components that make up a trading docu
