What to Look for in EDI Software: A Guide for Suppliers

Why EDI Software Matters Now

For suppliers that start out with independent retailers, expanding to big box stores can be a shift in your team’s day-to-day. Most teams will start out by manually inputting EDI documents from retailers’ portals back to their back-end systems (think QuickBooks/NetSuite). 

But, as you scale, without an EDI Integration Platform (also known as EDI Software), your team is stuck manually relying on order data all day when all of it could flow on its own. 

Even for established suppliers who have been selling into retail stores for decades, the EDI software they use is dated and disconnected from all the other channels and systems used in B2B order operations. 

The good news is, the EDI software landscape has changed a lot with EDI interface integration and tools built to optimize your entire supply chain. 

This guide is for B2B teams exploring EDI software so you can navigate your options and the features that matter most. 

What Is EDI Software?

EDI (Electronic Data Interchange) is a way documents are structured so that businesses can simplify trade. EDI Software automates the exchange of documents using standardized formats. Instead of downloading a PDF and filling out a PO yourself, the software helps automate the process. 

The Three Types of EDI Solutions on the Market

Choosing the right EDI software starts with understanding the kind of solution you're evaluating. 

1. Legacy EDI Providers

These platforms were built decades ago and still dominate retail supply chains. They’re EDI-first but built to service retailers. Suppliers are often told they have to use providers like SPS Commerce or True Commerce, which simply isn’t true. For retailers, these systems are highly engrained into their order tech stack and are vital to the way they do business

Pros: Large retailer network, reliable document exchange

• Cons: Clunky portals, expensive onboarding, enterprise pricing, hard to scale
  
  

Best for: Large retail enterprises 

2. Modern EDI Software 

This category includes newer tools focused solely on making EDI easier. They modernize the interface and are more cost-effective, but still treat EDI as a silo.

• Pros: Faster setup, more transparent pricing 
• Cons: Often focused on EDI only. Not built to manage other B2B workflows like emails, sales reps, or non-EDI channels
  
  

Best for: Teams that need EDI compliance quickly but don’t require order orchestration across other channels. Have no plans to sell beyond big box stores in the next 2-5 years. 

3. Order Management Systems with EDI Integration

These platforms aren’t just EDI tools, they’re built to manage your entire B2B order lifecycle. They connect EDI orders and other order sources (email, sales reps, portals, marketplaces) into a single workflow without all the development fees. 

But here's the key: Look for a modular OMS. You can start with EDI integration and add more later as your needs evolve.

• Pros: Unified B2B order flow, ERP integration, partner-specific rules, automation across channels, affordable EDI automation, modern dashboards
  
  
• Modular Advantage: Start with just EDI if that’s your priority
  
  
• Cons: May require investment beyond EDI
  
  

Best for: Manufacturers, wholesalers, and suppliers looking for long-term scalability without committing to a full rip-and-replace

What to Consider When Evaluating EDI Platforms

Choosing the right EDI software starts with understanding your business type, current needs, and future requirements. 

Business Size and Order Volume

Consider how many orders you're processing each week, and how many additional SKUs or partners you plan to add over the next 12-24 months. A system that works at 100 orders per month may buckle at 10,000 without the right infrastructure.

Retailer Partner Requirements

Retailers often impose strict document standards. Your EDI platform needs to be able to handle partner-specific logic.

Internal Technical Resources

If you have an in-house IT team or EDI specialist, you may be comfortable managing a more technical platform. If not, look for a tool that your operations team can manage.

System Integration and ERP Compatibility

Think beyond document exchange. What systems must your EDI solution connect to? Native integrations are far more efficient than relying on middleware/iPaaS tools. 

Automation 

Some businesses aim for full automation from day one. Others prefer dashboards and alerts to monitor EDI flow and handle exceptions manually at first. Know what level of control your team needs.

Time to Value

Not all platforms can get you live in the same time frame. Legacy systems usually take months to implement, while more modern tools can often be configured in weeks. 

Cost and Pricing Transparency

Predictable pricing matters, especially as you scale. Legacy tools tend to have complex pricing structures that inflate with each connection or partner you add. 

Critical Features to Compare in EDI Platforms

Native ERP Integration
Look for integrations with your ERP. Batch exports or file uploads leave room for delay and error.

Exception Handling
Your system should detect and flag EDI order errors before they cause chargebacks.

Retailer-Specific Logic
Your platform should automatically apply trading partner rules, without requiring workarounds or further IT investment.

Scalable Onboarding
As you add partners, onboarding should get easier. Preconfigured integrations save significant time and effort.

No-Code Configuration
A modern platform should minimize the need for development work. 

Making the Right EDI Choice Starts with the Right Questions

Before you compare features or pricing, align your team around a few essential questions to help avoid picking the wrong tool for the job.

What are the immediate requirements, and where do you plan to grow?

Don’t just think about the connections you need today. Are you expecting a second retailer next quarter? A short-term fix shouldn’t limit long-term flexibility.

What channels are part of your B2B order flow?

If you’re only thinking about EDI, you may be missing the bigger picture. Are reps still taking orders by email? Are you downloading POs from portals? The right platform should consolidate workflows.

What needs to be integrated?

EDI doesn’t exist in a vacuum. What systems need to be updated when an order is received, validated, or acknowledged?

Who’s responsible for managing EDI internally?

Is this a tool your ops team will use every day? Or will IT own it? Make sure the interface, configuration, and ownership model fits the needs and capabilities of your teams.

How fast do you need to move?

If you’re facing a compliance deadline or an upcoming seasonal volume spike, onboarding timelines become strategic.

What does value look like?

A cheaper platform that adds hours of manual work each week isn’t actually cheaper. Consider the cost of errors, chargebacks, delayed shipments, and missed opportunities when evaluating ROI.

Red Flags That Signal an EDI Platform Isn’t Built for You

Even platforms that look good on paper can introduce friction once they’re in use. If you’re seeing any of these, proceed with caution:

Unclear timelines or project scopes - If a vendor can’t tell you how long implementation will take or what onboarding includes, you may be in for delays and extra costs.

Manual handoffs between EDI and ERP - Integration needs to be real-time, reliable, and error-aware.

Opaque pricing or support tiers - Beware of platforms that quote low transaction fees but charge separately for onboarding, support, and trading partner setup. 

Vendor lock-in - If every exception requires a custom script, you’ll have a hard time scaling unless you have a significant IT team that’s well versed in EDI. 

How to Know It’s Time to Rethink EDI

If you’re still unsure whether now is the right time to invest in EDI software, look closely at how your order operations are functioning day to day. When a single trading partner can trigger a scramble, it’s a sign that your manual workflows or current system isn’t built to flex. 

Order re-entry isn’t just inefficient; it becomes a drag on productivity and morale. Missed shipments aren’t technical problems; they’re risks that sacrifice customer relationships. And if your team lacks visibility across B2B orders, you're operating in the dark. 

If you're growing and selling through more retailers, more reps, more volume, but your current tools can't keep up, those cracks will only widen. EDI should support scale, not stand in its way.