Saas for EDI -- Is it Always the Less Expensive Solution???

The following was stated in a question about ranking EDI processing. The 1st option was stated in the following manner:

EDI SaaS Model Delivering 40-45% EDI Cost Reductions



I do NOT necessary recommend the utilization of SaaS (Note: that when most EDI marketers reference EDI SaaS (Software as a Solution, and they really mean Translation as a Solution (TaaS). They are not the same thing.). TaaS may not be as effective, controllable, and cost effective as it is often touted (and in comparison against what??). My recommendation of an architectural solution such as TaaS is determined AFTER an architectural evaluation. Taken into consider are:




• Current and future volumes
  
• Types and complexity of EDI/B2B transactions
  
• Types of communication protocols.
  
• Robustness 3rd Party Solutions
  
• Costs analysis and various types of models
  
• Reputation for service of 3rd Party TaaS vendors.
  
• Management capability of the client to oversee their 3rd party TaaS provider.

I have seen some companies outsource their EDI programs and later bring them back – Hewlett Packard, for example, here in Silicon Valley. This requires dismantling their processes from their 3rd party TaaS vendor, while reestablishing their in-house EDI team and processes -- a costly and disruptive effort at best. There are several large EDI/B2B providers of TaaS, with numerous boutique firms also in the fray. For several small transactions and volume, TaaS may be the way to go. This solution is not always the cheapest. If you go with the cheapest, the support suffers. However, if you hire one of the major providers, you are locked into them. If you are enhancing your processes over time, you will need to negotiate change requests & costs with your provider. All of this need to be considered when making this critical decision.


Another low-cost, but effective model I often suggest is: the installation of an in-house translation product such as Softshare’s Delta and ECS (disclaimer – I am a partner). A consultant can install the product and create the maps. Softshare and several other providers offer robust, fast, low-cost solutions that can be easily implemented. In Softshare’s case, they also have a reputation for excellent service, and have been in existence nearly 25 years with the same owners, and management team.


An internal resource can be trained on monitoring the daily activities and raising a flag if there are problems. They do not necessarily need to have the skills to resolve mapping issues.


This solution may be more controllable, and result in lower cost than paying a SaaS provider monthly processing fees. And the client has greater flexiblity and understanding of the process.