EDI for Small Business


EDI for small business offer a range of services that help them manage their EDI requirements. These services include mapping and translation of data between different EDI formats, connectivity and communication services, as well as data transformation and integration with existing systems.

These days, most companies use EDI to send invoices, purchase orders, and other documents between each other. EDI makes it easier for companies to communicate with each other, and it saves money by eliminating paper forms and manual processing and increases efficiency.

Why Do Small Businesses Need an EDI Solution?

An EDI solution allows businesses to exchange data between themselves using computers instead of paper forms. These solutions are often referred to as “electronic data interchange” (EDI) because they were originally designed to facilitate business transactions. However, these days, EDI solutions are also being used to automate processes within organizations.

Small businesses face many challenges in implementing an EDI solution to automate and improve business operational efficiency. Some of the challenges include high costs, limited resources, and a lack of knowledge on how to use EDI. But for those who want to scale and improve their trading partner relationships with big retailers should consider incorporating EDI into their current business infrastructure.

Today all large retailers require businesses to be EDI compliant to do business with them. This makes it mandatory for all business types irrespective of small, medium, or large to start implementing and using EDI to exchange data electronically.

The best option for small businesses to become EDI compliant is to choose the right EDI service provider, which can offer scalability, security, and customer support at affordable costs. It is also important to choose a provider that understands the unique needs of your businesses and offers personalized solutions that meet those needs.

There are several different types of EDI solutions available today.

Let’s explore the 2 most common ones,

Here are some of the most common types of EDI solutions used by small businesses

Cloud-Based EDI Solution
EDI Outsourcing or Managed EDI Services

With Cloud EDI you only need internet and a computer to start exchanging EDI documents with your trading partners. You don’t have to install any software, require any prior EDI knowledge, or hire any EDI specialists. Also, with Cloud EDI you can easily scale your business by adding new trading partners easily and start exchanging EDI documents from anywhere in the world. Commport Communications offers the most affordable and best Cloud EDI solution with world-class customer support. Get started today!

Some of the advantages of cloud based EDI solution are,
  1. Easy to setup
  2. Affordable pricing
  3. Access from anywhere in the world with just a computer and internet connection
  4. No need to install any software or invest in a hardware infrastructure
  5. No prior EDI knowledge is required to use the system
  6. Minimal training is required & easy to learn

With EDI outsourcing a 3rd party EDI provider like Commport Communications will manage all the EDI aspects for you. You don’t have to install software or invest in a cloud EDI solution, your 3rd party EDI provider will have all the latest technology, infrastructure, and resources to make your business EDI compliant.

Some of the advantages of EDI outsourcing services are,
  1. Easy to add new trading partners and help scale your business growth. Your 3rd party EDI provider may have existing relationships with all the major retailers and make it easy for you to connect
  2. You don’t have to invest in an EDI infrastructure and technology and no need to hire any additional resources which saves time and money.
  3. Your 3rd party provider will always have the latest technology. Which makes your business EDI complaint and EDI ready which your competitors may lack.
  4. Most EDI outsourcing providers offer you flexible pay as your payment option.

9 Reasons Why Small Business Must Invest in a EDI Solution

1. Save Time & Money

One of the biggest reasons why small businesses should consider implementing an EDI solution is because it will save them time and money. A study conducted by the U.S. Small Business Administration found that small businesses spend $1.5 billion annually on paper documents. That means that every year, small businesses waste more than $100 million just to send out invoices, receipts, and other paperwork.

2. Reduce Errors

Another reason why small businesses need an EDI solution is so that they can reduce errors. In fact, according to the National Association for Accountancy & Technology (NAAT), there are approximately 1.2 million errors made each day in the United States alone. This translates into nearly $50 billion dollars lost each year due to mistakes. With an EDI solution, small businesses can eliminate these errors and save time.

3. Increase Productivity

An EDI solution can help your business become more efficient by reducing errors and increasing productivity. According to NAAT, “EDI solutions provide a means to automate processes, improve accuracy, and streamline workflow.”

4. Boost Customer Service

A good customer service system will make your customers feel valued and appreciated. It will also allow them to contact you with any questions or concerns they might have. This will give you the opportunity to resolve issues before they escalate into larger problems.

5. Simplify Accounting

If you’re looking for ways to save money while improving efficiency, then an EDI solution is perfect for you. An EDI solution allows you to automate processes so that you can spend more time doing things that matter instead of spending time on tasks that aren’t as important.

6. Easy to Implement

In fact, implementing EDI solutions is easy. You just need to make sure that your company has the right hardware and software installed. Once you do, you’ll be able to start using EDI with ease. Also, small businesses can opt-in for cloud-based EDI solutions or EDI outsourcing services for cheaper and affordable options.

7. EDI Help Your Business Grow

If you’re interested in growing your company, then you should consider using EDI solutions. These programs allow you to automate tasks, streamline workflows, and make data easier to access.

8. Easy to Scale and Add New Trading Partners

EDI solutions help companies scale by automating repetitive tasks, improving efficiency, and reducing costs. In fact, some studies show that EDI implementations can reduce labor costs by as much as 30%.

9. Meet Trading Partners Compliance Requirements

Most major retailers require a business to be EDI compliant to do business with them and implementing an effective EDI solution makes your business EDI complaint and opens up your business opportunities.


A small businesses can benefit from using EDI service providers. By choosing the right provider and integrating their EDI solutions with their existing systems, small businesses can achieve greater efficiency, accuracy, and security in their business processes.Complying with relevant standards, investing in the right EDI solution provider and infrastructure, and staying up-to-date with regulatory changes are essential for successful EDI implementation in the healthcare industry.

Ready to find out more about Commport EDI Solutions?

Contact us today for a free quote!
Frequent;y Asked Questions

EDI is good for a small business depends on various factors, including the business’s size, industry, transaction volume, and growth plans. When implemented strategically and aligned with the business’s needs and goals, EDI can offer significant advantages in terms of efficiency, competitiveness, and operational excellence. Small businesses should carefully assess their specific situation to determine if EDI is the right choice for them.

EDI is a system that allows businesses to exchange electronic documents, such as purchase orders and invoices, in a standardized format. It’s important for small businesses because it streamlines communication with partners, reduces manual data entry errors, and improves efficiency in supply chain processes.

Yes, small businesses typically require EDI software or a service provider to implement EDI effectively. There are various EDI solutions available, including cloud-based options, that can be tailored to the specific needs and budget of a small business.

EDI can be cost-effective for small businesses, especially when they have a significant volume of transactions with partners. While there may be initial setup costs, the long-term benefits of reduced administrative costs, improved accuracy, and faster order processing often outweigh the investment.

Small businesses should choose EDI solutions that prioritize data security and compliance with industry standards. This includes using secure communication protocols, encryption, and regularly updating software to mitigate vulnerabilities. Additionally, staying informed about industry-specific EDI regulations is crucial for compliance.

Implementing EDI can make small businesses more competitive by enhancing their ability to meet customer demands efficiently. It can lead to quicker order processing, reduced lead times, and improved customer satisfaction. Furthermore, as small businesses expand, EDI can facilitate easier integration with larger trading partners, opening up new growth opportunities.

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