Whether you’re a business executive or technical leader, this article will walk you through the basics of Odoo-EDI integration. We’ve created a practical roadmap and checklist to help you navigate this process confidently and efficiently.
If you’re looking for basics on what is Odoo and what is EDI, check out these articles and resources.
Trading Partners
First thing to consider is, who are your Trading Partners? In world of EDI, Trading Partners are companies you want to send and receive transactions (i.e. sales orders, purchase orders, invoices, etc)
Often on the list of Trading Partners are large retailers, like Amazon, Home Depot and Grainger. Another potential use case for EDI integration is your 3PL partner, like ShipBob, ShipMonk and more.
Action Step: list out each of your trading partners.
Transactions
For each trading partner, you next need to outline what transactions you want to communicate with them. Typically in Odoo, you will want to send and receive transactions around the following activities:
- Sales Orders
- Purchase Orders
- Shipping
- Invoices
- Payments
- Account Credits and Debits
- Inventory
Action Step: under each trading partner, list out the type of transactions you require.
Direct Integration vs VAN Integration
At a high level, there are two ways your system can transact with a Trading Partner – (1) directly or (2) via an intermediary, also known as Value Added Network (or VAN)
- Direct or Point-to-Point Integration: as the name implies, the two systems talk directly to each other. Further, the implementation and maintenance load is your responsibility to carry.
- VAN Integration – Value Added Networks (VAN) are a intermediaries who, in the best case, facilitate the integration and maintenance of your EDI transactions. A benefit when utilizing a VAN is that your Trading Partner may already be setup there.
| Direct | VAN | |
|---|---|---|
 | Cost effect at Scale & Scope No intermediaries reduces transaction times Greater control over data Potentially, better security | Managed Setup with VAN Quick access to Trading Partners on the Network Monitoring & Maintenance built into system Single Point of Connection for Trading Partners Risk managed by VAN - i.e. backups, uptime, etc. |
 | Increased technical complexity Multiple integrations with different protocols can be complex to map and integrate Monitoring & Maintenance required build out IT overhead | Cost Structure Customizations, configuration & support routed and approved by VAN Data routed through VAN could slow down transaction Contract Lock-in |
 | Upfront costs are higher No per transaction costs Unknown costs for maintenance | Lower upfront costs, generally Annual/Monthly minimums Per transaction fee increases with number of transactions Per Trading Partner fee, regardless of volume |
Rule of Thumb Advice*
If you have (some or all of the following)…
- A strong Odoo integration partner and/or internal IT resources
- Well established relationships with your Trading Partners
- High transaction volumes
- Long-term cost optimization is a priority
…Then, Choose Direct Integration
If you have or want (some or all of the following)…
- Limited IT resources
- Trading Partners already on a VAN
- Lower transaction volumes
- Interest in predictable (if, higher) costs
…Then, Choose a VAN
*Disclaimer: your business, risk tolerance, IT infrastructure, transaction volume, number of Trading Partners is unique to your business. Let’s talk.
What does integration really mean…?
Below is a high-level diagram of the integration works with Odoo + EDI.
- This is your Odoo database with all your business data.
- a. An App is installed in Odoo to extract, transform and load data to or from an EDI document
- Documents travel over the internet. The method of transfer (FTP, AS2, HTTPS, etc) will depend on your integration approach (Direct or VAN) and trading partner.
- Trading Partners send or receive EDI documents.
Let’s Design Your Perfect Odoo EDI Integration!
Cost Considerations
Costs vary widely depending on your business requirements. The number of trading partners, number of transactions, number of types of transactions, technical resources available on all sides and more play a major role in defining costs. Talk to a professional to get more information.
| Direct Integration Costs | VAN Integration Costs | |
|---|---|---|
| Setup/Initial | ||
| Development | $10,000 to $50,000 | $5,000 to $15,000 |
| On-Going | ||
| Infrastructure* | $500 to $5,000 | n/a |
| Maintenance* | $0 to $5,000 | n/a |
| Subscription* | n/a | $500 to $2,500 |
| Trading Partner Fees* | n/a | $50 to $200 |
| Per Transaction Fee | n/a | $0.05 to $1.00 |
| On-Going Monthly Total** | $500 to $5,000 | $1,000 to $5,000 |
* Monthly
**Your business requirements will dictate cost, we can help you model it out.
Get a Comprehensive Checklist to Simplify Your Odoo EDI Integration!
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