EDI Shack

Wednesday, 14 October 2020 05:45

The Cost of EDI

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The biggest question in EDI is always: What does it cost?

Of course there is no one answer, it depends on who you're dealing with. Are you dealing with a VAN, an integrator, or doing it in-house? Costs vary wildly, and paying more doesn't guarantee you a better system.

 

VANS - A lower cost and a more expensive cost structure

Below is a fairly typical lower cost structure

  • Setup costs: $1,500-$2,500 per transaction set for mapping
  • Yearly subscription fee: $10,000
  •  For each trading partner: minimum $2,000 per year, $3,000 per year for more than 2,000 transactions, or $5,000 per year for more than 5,000 transactions.
  • For a company doing 25,000 transactions per year. the cost would be about $25,000 per year or roughly $1.00 per transaction.

 

Below is a fairly typical (but expensive) cost structure

  • Setup costs: $3,000-$5,000 per transaction set for mapping
  • Yearly subscription fee: $25,000
  •  For each trading partner: minimum $2,000 per year, $3,000 per year for more than 2,000 transactions, or $5,000 per year for more than 5,000 transactions.
  • For a company doing 25,000 transactions per year. the cost would be about $75,000 per year or roughly $3.00 per transaction.

 

 Yeah, for some companies it's not a problem, but for most small companies paying a VAN is out of the question, it's just too expensive. Fortunately, there are many newer integrators to deal with now, unfortunately their prices are usually lower, but not that much lower.

 The cost of VAN's and integrators force most small companies to roll their own EDI systems. While this is lower cost, most small companies don't know enough about EDI to make good decisions on who to hire to get a robust, scalable EDI systems, and they end up with a mishmash of EDI components and no comprehensive system that "just works".

We are not making the claim that our EDI Magic programs and components are the only logical choice, the best choice or the least inexpensive choice if you don't use a VAN or integrator. However, we can't estimate the cost of an open source solution as it depends almost entirely on who you hire to do it for you. We can estimate the costs for EDI Magic though.

We deal with either the Logistics industry or the medical (HIPAA) industry quite often so here's an estimate for a scenario for both of these.  

 

EDI Magic
Below is sending a 210 (invoice) and receiving a 997 in reply Below is sending a 270, and an 837 and receiving 999's, 271's and 835's in reply
  • EDI Magic Program                    FREE
  • EDI Magic Service                      FREE
  • EDI ANSII X12 210 component   $795
  • Component cost includes 5 hours custom programming
  • 997 component code is FREE but will require some custom programming to setup
  • Each component purchase included 5 hours of custom programing eg. this order includes 5 hours of custom programming.
  • EDI Magic Program                  FREE
  • EDI Magic Service                    FREE
  • 270 outgoing component        $795
  • 271 incoming component        $595
  • 837 outgoing component        $595
  • 835 incoming component        $595
  • 997 incoming reply                 FREE
  • Each component purchase includes 5 hours of custom programming. eg. this order includes 20 hours of custom programming.
 Total cost (excluding extra programming) $795   Total cost (excluding extra programming) $2580

 

 

 

Read 848 times Last modified on Wednesday, 05 May 2021 17:47