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NAGASA - What will all of this cost?

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Electronic Commerce

 

What will all of this cost?

Three costs exist when implementing an EDI workflow:

  • Establishing the EDI link
  • Integrating existing business processes with EDI
  • Establishing the automated data collection component of the system in a warehouse or inventory
  • Benefits begin after taking the first step; optimal returns occur after all three components are in place. In terms of specific costs, research done in 1996 indicated that expenditures for software alone are:

Type of SystemCostPC users$19KMid-range$32KMainframe$67K

Costs for any additional hardware, training, documentation, VAN costs, and system application changes would add to these figures. While reviewing these figures, keep in mind the substantial economic and process benefits that result from EDI implementation. Further, industry practitioners report that companies typically require four-to six months to start up transmission of their first EDI document and experience a 2-to-3 year payback period for the cost of the EDI implementation.

For more information about EDI or to get a copy of the complete NAGASA Electronic Commerce Implementation Guideline, contact NAGASA:
Phone: 202-328-8441 Fax: 202-328-8513
e-mail: information@nagasa.org
Mail: 1604 New Hampshire Avenue, NW , Washington, DC 20009

 

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