When it comes to EDI (Electronic Data Interchange), businesses often face a critical decision: use a consolidator or build a direct integration. On the surface, consolidators like SPS Commerce or TrueCommerce may appear convenient — but convenience can come with hidden costs that compound over time.
If you're serious about scaling efficiently, avoiding unnecessary fees, and owning your data flow, it's time to look at the long-term impact of each approach.
What Is an EDI Consolidator?
An EDI consolidator acts as a middleman between your business systems and your trading partners. Instead of directly exchanging documents like purchase orders or invoices, your data is routed through the consolidator’s platform. They handle mapping, compliance, and document exchange on your behalf.
Sounds great — until you look at the fine print.
With consolidators, you’re often hit with:
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Monthly “connection fees” per trading partner
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Per-document transmission fees
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Limited customization options
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Longer timelines for changes or updates
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Difficulty switching platforms down the line
What Is a Direct EDI Integration?
A direct EDI integration connects your ERP, WMS, or accounting platform directly to your trading partners — with no intermediary.
At Crackerjack-IT, we build direct EDI connections tailored to your systems and processes. You get:
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Full control over mapping logic
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Real-time visibility into data flow
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One-time integration fees with low ongoing maintenance
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The ability to scale without increasing per-partner costs
Hidden Costs of Using EDI Consolidators
While consolidators offer a quick path to EDI compliance, the long-term math often doesn’t work in your favor. Let’s say you have 15 trading partners and send 100 EDI documents a day — those “per-transaction” and “partner access” fees add up quickly.
Plus, you’re locked into their ecosystem. Want to switch ERPs? Add a custom field? Support an edge case document? Good luck — you’re stuck waiting in line for support or paying extra for every change.
Why Direct EDI Integration Pays Off Long-Term
A direct EDI integration may require more setup upfront, but it gives you:
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Lower total cost of ownership
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Faster onboarding of new partners
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Custom mapping and business rules
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No recurring partner fees
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Independence from 3rd-party vendors
For businesses processing high EDI volume or requiring tight system control, direct integration isn’t just a better option — it’s a smarter investment.
Which Approach Is Right for You?
| Use a Consolidator If... | Choose Direct EDI If... |
|---|---|
| You're a small business just getting started | You’re scaling with 20+ EDI transactions a day |
| You only need a few trading partner connections | You want to own and control your data flow |
| You’re okay with ongoing per-document fees | You’d rather invest once and reduce long-term costs |
If your EDI costs are climbing or your team is hitting roadblocks when making changes, it may be time to rethink your integration strategy. At Crackerjack-IT, we’ve helped dozens of businesses move away from consolidators and regain control of their operations.
Let’s talk about building a direct EDI integration that works for you — and pays off for years to come.