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EDI
Build or Buy? Making the Right EDI Choice
Discover how to choose between building in-house or buying a cloud EDI solution for faster, error-free B2B operations.
Thamindu Dilhara
Published: 17 Oct 2025
Table of Contents
In today’s fast-paced digital marketplace, the pressure is on. Orders keep flowing in, and supply chains are becoming more complex. Manual data entry is no longer just a bottleneck, it’s a real risk. There has to be a better way to communicate with trading partners. A method that automates the endless exchange of documents such as purchase orders, invoices, and shipping notices.
That “better way” is Electronic Data Interchange (EDI).
Meet ‘‘BrightSupply’’ A Mid-Sized Manufacturer at a Crossroads
Let’s imagine a mid-sized manufacturer. We’ll call them ‘‘BrightSupply’’. They just landed a big deal with a major retailer. Great news!
But there’s a catch: the retailer only works with suppliers that can exchange purchase orders (EDI 850), invoices (EDI 810), and shipping notices (EDI 856) via EDI.
Now BrightSupply is asking the same question many growing businesses face:
“Should we build our own EDI solution in-house, or buy a ready-made one from a trusted provider?”
This is their journey, and it might be yours too.
New to EDI? Learn the fundamentals, including EDI standards, transmission methods, and how electronic document exchange works, in our comprehensive guide here
Realizing the Need & Defining Requirements
BrightSupply started with manual processes: emails, spreadsheets, and lots of human effort. It worked, but slowly, with frequent errors.
The new retailer required:
- EDI 850 Purchase Orders processed automatically
- EDI 856 Advance Ship Notices before shipments
- EDI 810 Invoices matching compliance rules
Suddenly, manual entry wasn’t an option.
Before jumping in, BrightSupply mapped out what they really needed:
- Which documents mattered first (POs, ASNs, invoices)
- Priority partners to onboard (the retailer was #1)
- Transaction volume expectations (hundreds initially, scaling to thousands down the line)
- Internal capabilities (no deep EDI expertise on staff)
- Budget flexibility they wanted a scalable solution, not a quick fix
Build vs. Buy: The Big Decision
This was the big decision point.
Option 1: Build In-House
The IT director first suggested building their own EDI solution. At first, it sounded good:
- Full control over how it was built.
- Data would stay completely in-house.
But the reality was different:
- Specialized Skills Needed – They’d need developers who knew EDI standards like X12 and protocols like AS2.
- High Upfront Cost – Development hours, servers, software licenses all before sending a single transaction.
- Ongoing Maintenance – Every partner update meant rewriting maps, testing, and deploying again.
- Scalability – Adding a new partner could take weeks of work.
Option 2: Buy a Managed Cloud EDI Solution
They also looked at outsourcing. The benefits were clear:
- Faster Go-Live – Some providers could get them up and running in a few days (or at most within a couple of weeks).
- Lower Cost – Subscription pricing avoided big upfront expenses, with the possibility of upgrading to a higher subscription in the future when message volumes grow.
- Built-In Expertise – The provider handled mapping, compliance, and security updates.
- Easy Scaling – Adding partners or document types was simple and quick.
In the end, buying made more sense. It’s not just for cost, but for reducing risk.
Choosing the Right Service Provider
BrightSupply knew they couldn’t afford to gamble on just any provider. This wasn’t about buying a piece of software. It was about finding a long-term service provider who could support their growth. The team sat down to outline what truly mattered.
- Support for multiple EDI standards (X12, EDIFACT) and modern API options.
Learn more about EDI standards in detail here - Strong security practices and compliance certifications.
- A proven track record with retailers similar to theirs.
- Easy onboarding and good customer support.
When they discovered EDI Generator by Aayu Technologies, the choice became clear. The platform not only met all of their technical and security requirements but also offered the kind of expertise and responsiveness they were looking for. BrightSupply realized they weren’t just choosing a tool. They were gaining a service provider who understood the challenges of retail compliance and could guide them through scaling with confidence.
From EDI Integration to Smooth Operations
With the service provider chosen, it was time to connect the dots. EDI Generator by Aayu Technologies made this easier than BrightSupply expected. Purchase Orders flowed directly into the ERP as sales orders. Advance Ship Notices generated shipping labels and packing slips automatically. Invoices landed in the accounting system, already aligned with compliance rules.
The platform included pre-built templates for major retailers. This made the integration process take just days instead of months.
Deployment followed a phased approach. BrightSupply started with one partner and one document type. Once stable, they quickly expanded to ASNs, invoices, and more trading partners. The cloud-based setup meant no servers to manage. There were no unexpected downtimes and no after-hours patching required.
Testing added confidence. Internal simulations proved data accuracy, while partner testing confirmed that transactions were accepted on the retailer’s side. Built-in error alerts flagged issues early. Many problems were resolved automatically, reducing manual intervention. By the time BrightSupply went live, the rollout was smooth and secure.
Operations improved overnight. Automation replaced manual entry, freeing up staff time. Real-time dashboards gave visibility into every transaction. Most importantly, ongoing compliance updates were handled by the provider, so BrightSupply didn’t have to worry about changing retailer requirements. Their IT team could finally focus on higher-value projects instead of firefighting EDI problems.
The real win came in scaling. New retailers were onboarded quickly. New document types, like inventory reports, were added without disruption. Analytics built into the platform gave insights that helped improve fulfillment times. With a subscription model, expansion required no large reinvestments. Adding new partners or document types was simply a matter of quick configurations and fast onboarding.
Recommended Read: EDI Integration Benefits for B2B: Streamline Supply Chain, Reduce Costs & Errors
The Takeaway
BrightSupply’s story is one we’ve seen play out many times.
Building EDI in-house sounds tempting, but it comes with hidden costs. It included hiring skilled staff, maintaining infrastructure, and keeping up with compliance changes.
For most businesses, buying a managed EDI solution like ours isn’t just easier — it’s the smart business move.
When you choose a provider like us, you get:
- Faster time to value
- Lower risk and predictable costs
- Expert support and 24/7 monitoring
- A solution that grows as you grow
So before you start designing servers and hiring EDI developers, ask yourself:
Do you really want to become an EDI software company or do you want a service provider who already is?
With the right service provider, EDI just works. You can focus on what you do best: running and growing your business.
Thamindu is a Project Manager at Aayu Technologies with two years of experience managing projects and driving process improvements. He is passionate about agile methodologies, streamlining workflows, and using analytics to achieve better results. Outside of work, Thamindu loves learning new things, traveling and seeking adventures, spending time with friends, and caring for animals.
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