Q: How do I decide which option
is best for my company?
A: The most important factors
for you to consider are:
- Transaction volume (purchase orders, invoices,
shipping notices, etc.)
- Number of large trading partners (customers)
and specific requirements
- Current level of IT staff and technology support.
- Current business (accounting) systems and protocols.
Q: What cost elements should I
take into consideration?
A: To implement EDI “in-house”, the
following costs must be considered: translator software,
communications software, in-house or consulting
expertise, EDI standards updates, software version
updates, and separate VAN services or electronic
mailboxes. In general, the time frame for implementation
can range anywhere from 3-6 months, with costs ranging
from $15-30K. Additional, on-going operating costs
are in the range of $100,000 per year.
For Web-form, the modest up-front cost is about
$1-5,000, with Web-form services costing about $1.50
per individual form. However, as transaction volume
increases, data entry costs also rise.
The RedTail Service is a variable cost solution.
This means that as total transaction volume increases,
the unit cost of a transaction decreases. A modest
monthly subscription fee covers all service needed
to stay current with trading partners’ electronic
requirements, in addition to providing the necessary
back-up and support for your trading relationships.
For the supplier doing several hundred transactions
per month, RedTail can be 40-60% less expensive
than either a web-based method or bringing EDI in-house.
Q: What are the advantages of outsourcing EDI through RedTail?
A: Red Tail becomes your virtual
electronic trading department, complete with our
expertise and a variable cost structure. RedTail’s
capacity is virtually unlimited, enabling it to
grow as your company grows. In addition, it affords
you our state-of-the-art technology, with the
capacity of meeting the changing requirements
of any current or future trading partners.
Q: How is the Red Tail outsourcing
service priced?
A: We charge a modest, one-time
installation fee that covers the set-up and configuration
of the RedTail Transaction Manager?. Additional
partners can be added, for a small fee, at anytime.
On-going expenses consist of a monthly subscription
and a fee per transaction. The subscription covers
service, all trading relationship alignment, trouble-shooting,
customer support and maintenance of the transaction
audit trail. Subscription charges are based upon
the number of trading partners that you have and
transactions are priced according to monthly volume.
As transaction volume increases, the price per
transaction decreases.
There is no large investment to get started and
no additional or hidden charges, including VAN
service charges, software and expensive consulting
support. RedTail provides full electronic trading
capabilities as a variable cost to your business.
For a more detailed price quoteation, please
contact Sales at 866.764.7601 or email sales@redtailsolutions.net.
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