EDI Costs Plummet As Billing Services Move to Internet
Small carriers that thought zapping invoices to shippers electronically was a pipe dream may be in for a shock when they learn that electronic data interchange is being offered at a price they can afford.
Software providers and value-added networks are rolling out products that use the Internet as a communications vehicle for EDI, allowing carriers to transmit forms electronically — and they are targeting small companies as their primary customers.
Using traditional EDI, these services — such as load tendering, status reporting and invoicing — still cost thousands of dollars a year to set up and run. But some shippers are using systems that allow smaller carriers to conduct EDI transactions over an Extranet, a secured Internet location, which eliminates high setup costs. What’s more, advancements in the Internet may bring the costs of EDI down further.
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 | Projected EDI Growth  Source: Faulkner & Gray EC Research |
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These small firms have long resisted acquiring the technology because of the cost. But now, as the price for EDI drops, smaller carriers can offer services that rival those of their bigger competitors.
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