EDI VAN providers need to lower their prices

Question for those of you who have been paying attention: what does EDI VAN stand for? Yes, it really is an abbreviation and not some sort of transportation vehicle. The correct answer is Electronic Data Interchange Value Added Network and it’s the subject of Liaison Technologies’ and NewEDI’s recent survey. Among its findings, the survey reveals that mid-market companies believe most EDI VAN providers are using old business models, resulting in higher prices and less value in today’s tougher economic climate.

Prices did not keep up with the times

While EDI technology has not changed for over four decades, the infrastructure that delivers EDI transactions has gone through a tremendous transformation, both in terms of access and cost. The survey (with nearly 700 respondents from businesses generating under $10 million to over $500 million in annual sales revenue) indicates that most providers are considered at par technologically but are offering a price structure that doesn’t reflect the lower cost of delivering these services in today’s environment.

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