Apr 23

Saving Money with B2BGateway EDI

saving-moneyUsing B2BGateway’s cloud based, fully-integrated EDI solutions removes the need for your organization to re-key data, thus eliminating costly errors and reducing overhead! We sometimes get questions from customers that go along the line of: “We have a new CEO, CTO, CIO, etc, and (s)he wants to know how B2BGateway EDI solutions save our organization time and money?

Let’s answer that question with a real life EDI example from one of our clients (Let’s call them ABC Inc. for this purpose).

ABC Inc. has eight trading partners setup with B2BGateway EDI. They all require Purchase Orders (850), Invoices (810) and Advance Ship Notices (856). Excluding set up fees, ABC Inc.’s monthly bills to transmit EDI data with B2BGateway were as follows:

EDI from B2BGateway
November 2014$213.64
December 2014$234.61
January 2015$154.87
February 2015$122.33
March 2015$204.99
April 2015$229.08
Six Month Average$193.25

Manual Data Entry Example

Now let’s see what it would cost if ABC Inc. was doing EDI manually in house. We still have eight trading partners, all requiring Purchase Orders (850), Invoices (810) and Advance Ship Notices (856). Let’s calculate ABC Inc.’s bill for a month where 750 orders were received (averaging 4 orders daily per trading partner).

The average employee can manually process about 8 to 10 documents per hour. We will assume the same for invoices and ASNs as well. This means that 750 orders just became 2,250 documents to manually process.

  • Hiring part time employees at $15 per hour to key in 2250 documents would take about 250 hours of manual data entry.
  • Since there is only about 160 working hours in a typical month, we’ll need to hire 3 people to type in all this data in a reasonable amount of time!
  • This works out to about 83hrs x 3 people x $15 per hr = $3,735
  • On the absolute best day, the order entry errors will be zero, however, on an average day 5% of transactions will have errors. That means that with 2,250 documents, there will be about 112 with issues that will need to be retyped – and we haven’t even mentioned chargebacks yet!


You can see here that in a single month, ABC Inc. would end up spending 20x the amount of money and would have the potential for lots of errors which means costly chargebacks. The simple and smart choice is to contact B2BGateway and speak to someone about your EDI needs today!

B2BGateway EDIManual Data Entry
Avg. Monthly Fees$193.25$3,750.00
ChargebacksNoneToo Many!
Total CostNot Much!Way Too Much!!

The above figures are for illustration purposes only please contact our Sales@B2BGateway.Net today to see how B2BGateway can drastically reduce your monthly processing costs.

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