What is the limitation of EDI?

4 months ago
E-Commerce

While countless businesses enjoy the benefits of EDI, some companies are still cautious to try it out due to the following limitations of EDI.

1.      Cost of Implementation.

It is true that EDI provides massive cost savings benefits but for small businesses re-designing and implementing software applications to fit in EDI into current applications can be quite costly. Such limitations of EDI must be considered if you plan on implementing such system.

2.      Electronic System Safety

EDI also necessitates substantial investment in computer networks and security systems for maximum security. Any EDI system installed would require protection from hacking, malware, viruses, and other cybersecurity threats.

3.      Preliminary Setup Consumes Time

Not only is the implementation of EDI system expensive to install, but it also consumes a considerable amount of time to set up the essential parts. Thus, such limitations of EDI can hinder fast-tracking of services if urgently required.

4.      Several Standards to Maintain.

Numerous businesses looking to implement EDI also consider the several standards involved. These limitations of EDI do not allow small businesses to exchange data with larger establishments that make use of latest edition of a document standard. Some known measures include ANSI ASC X12, GS1 EDI, HL7, TRADACOMS, and UN/EDIFACT.

5.      Suitable Backup System

EDI implementation also requires regular maintenance as the business functionality is highly dependent on it. Some robust data backup system is needed in case of system crash or for statistical purpose. Such limitations of EDI can cost some substantial amount to implement.

Rusma Khadka
Sep 21, 2022
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