EDI Software vs Simple CSV Converter: Which Do You Need?

Quick Decision Framework

The Full Breakdown: Feature Comparison

Cost Comparison: 5-Year Total Cost of Ownership

The upfront monthly price difference seems obvious ($500-$5,000 vs $99), but let's look at the true total cost of ownership over 5 years for a small vendor processing 50 EDI files per month:

When Full EDI Software Makes Sense

Don't get us wrong—full EDI software platforms like SPS Commerce and TrueCommerce are powerful solutions that many businesses absolutely need. Here are scenarios where the investment is justified:

1. High Transaction Volume

Threshold: 1,000+ EDI documents per month (30+ orders per day)

At this scale, manual data entry from CSV files becomes a bottleneck. The time saved with automated ERP integration pays for the software cost.

Example: A distributor receiving 50 EDI 850 purchase orders per day from 20 retailers would spend 3-4 hours manually entering CSV data into their ERP. Full EDI software with real-time integration eliminates this entirely.

2. Complex Trading Partner Requirements

Threshold: 50+ trading partners with different EDI specifications

Each retailer has unique EDI requirements (different segment usage, mandatory fields, compliance rules). Managing 50+ sets of requirements manually is error-prone and time-consuming.

Example: Walmart requires MAN*GM segments with SSCC-18 barcodes in 856 ASNs. Target requires CTN packaging codes. Home Depot needs specific GLN location identifiers. An EDI platform manages these requirements automatically.

3. EDI Transmission Responsibilities

Requirement: You must send EDI files directly to trading partners (not via web portal)

Some retailers require direct EDI transmission via AS2, SFTP, or VAN networks. You can't use email or web portals. Full EDI software handles these protocols.

Example: Costco mandates EDI 856 ASN transmission via AS2 protocol before shipment arrival. You need EDI software with AS2 transmission capability—a CSV converter won't work.

4. Compliance Monitoring and Alerting

Requirement: Automatic OTIF tracking, chargeback prevention, SLA monitoring

Full EDI platforms monitor retailer compliance requirements and alert you to potential chargebacks before they happen.

Example: Walmart's OTIF (On-Time In-Full) metric can trigger a 3% COGS penalty if you fall below 90%. Full EDI software tracks your OTIF percentage in real-time and alerts you when you're trending toward penalties. A CSV converter doesn't monitor compliance.

When a Simple CSV Converter is All You Need

Many small to mid-size vendors are sold EDI software they don't actually need. Here's when a $99/month CSV converter is the smarter choice:

1. You Receive EDI Files (But Don't Send Them)

Common scenario: Retailers email you EDI 850 purchase orders or provide them via web portal download

If you're not transmitting EDI files back to retailers (or you use their web portal to submit 856/810 responses), you don't need EDI transmission software. You just need to convert incoming EDI files to readable CSV format.

Example: A small vendor receives Walmart 850 purchase orders via email. They need to read the order details (quantities, ship dates, department numbers) to fulfill the order. They submit their 856 ASN via Walmart's Retail Link portal. PlainEDI converts the 850 EDI to CSV in 30 seconds—no $500/month software needed.

2. Low to Moderate Volume

Threshold: Under 200 EDI files per month (fewer than 10 per business day)

At this volume, manual CSV import into your ERP/accounting system takes 30-60 minutes per day. That's cheaper than $500-$5,000/month EDI software.

Cost comparison:

• 50 files/month with PlainEDI: $99/month (unlimited) or $195/month (pay-as-you-go at $3.90/file)
• 50 files/month with full EDI software: $500-$1,500/month + implementation costs

3. Few Trading Partners (<10)

Common scenario: You sell to Walmart, Target, and 3-5 regional retailers

With only a handful of trading partners, you can manually learn their EDI requirements. You don't need automated trading partner management for 5 retailers—you need a way to read their EDI files.

Example: A food supplier works with Albertsons, Kroger, and Costco. Each retailer has different EDI formats, but the supplier only processes 5-10 orders per week from each. They convert incoming 850 purchase orders to CSV, review the data, and manually enter it into QuickBooks. Total time: 2-3 hours per week. Full EDI software would cost $6,000-$18,000 annually to save 2 hours per week.

4. No ERP System (or Manual Data Entry Anyway)

Common scenario: Using QuickBooks, Excel, or manual processes

If you don't have an ERP system with EDI integration capability (like NetSuite or SAP), full EDI software's main benefit (automatic ERP sync) doesn't apply. You're manually entering data either way—might as well enter it from a clean CSV file instead of cryptic EDI segments.

Example: A small manufacturer uses QuickBooks for accounting. QuickBooks doesn't integrate with EDI software without expensive middleware. They receive Target 850 purchase orders, convert them to CSV with PlainEDI, and manually create sales orders in QuickBooks. This takes 5 minutes per order vs. reading raw EDI (15-20 minutes per order).

The Hybrid Approach: Start with CSV Converter, Upgrade Later

You don't have to make a permanent decision. Many businesses start with a simple CSV converter and upgrade to full EDI software when they hit scale thresholds.

Growth Path Example

Total savings: By starting with PlainEDI for 2 years, you saved $11,624 compared to paying for full EDI software from day one ($12,000 full EDI vs $2,376 PlainEDI).

Common Myths About EDI Software

Myth #1: "You need full EDI software to be Walmart/Target compliant"

Truth: Walmart and Target require you to process EDI files and meet compliance metrics (OTIF, ASN accuracy). They don't care whether you use $5,000/month software or a $99/month CSV converter—as long as you ship on time and submit accurate ASNs.

Many small Walmart suppliers use web portals (Retail Link) to download 850 purchase orders and submit 856 ASNs. They convert the 850 files to CSV to read order details. This workflow is fully compliant.

Myth #2: "CSV converters can't handle complex EDI files"

Truth: Modern CSV converters (like PlainEDI) parse the full X12 EDI specification including hierarchical structures, multiple loops, and retailer-specific segments. The output CSV contains all data from the EDI file—nothing is lost.

For example, PlainEDI correctly parses Walmart 850 purchase orders with multiple ship-to locations (N1 loops), department numbers (REF segments), and MABD dates (DTM segments). All this data appears in the CSV output.

Myth #3: "You'll outgrow a CSV converter in 6 months"

Truth: It depends on your growth rate and business model. Many businesses process under 500 EDI files per month for years. If you're growing slowly or working with a small number of trading partners, a CSV converter remains cost-effective indefinitely.

The "outgrow" threshold is typically 1,000+ files per month OR 50+ trading partners OR mandatory direct EDI transmission (AS2/SFTP). Until you hit those thresholds, a CSV converter works fine.

Myth #4: "Full EDI software is easier to use"

Truth: Full EDI platforms have steep learning curves. Implementation takes 6-12 weeks with dedicated training. You need IT staff to manage connections, mappings, and troubleshooting.

CSV converters like PlainEDI are instant: upload an EDI file, download the CSV. No training, no setup, no IT support needed. For small teams without technical resources, CSV converters are significantly easier.

Real-World Scenarios: Which Solution to Choose?

Scenario 1: New Walmart Supplier (First Year)

Scenario 2: Growing Distributor (100+ Orders/Day)

Scenario 3: Amazon Seller Expanding to Walmart/Target

How to Evaluate Your Needs

Ask yourself these questions to determine which solution you need:

The Bottom Line

Full EDI software platforms (SPS Commerce, TrueCommerce, DiCentral) are powerful enterprise solutions that make sense for high-volume businesses with complex trading partner networks. If you process 1,000+ EDI files per month, work with 50+ trading partners, or need direct EDI transmission to retailers, the $500-$5,000/month investment is justified.

But for small to mid-size vendors who:

• Receive EDI files via email or web portal downloads
• Process under 200 EDI files per month
• Work with 1-10 trading partners
• Use retailer web portals to submit EDI responses
• Don't have an ERP system with EDI integration

...a simple CSV converter like PlainEDI ($99/month unlimited or $3.90/file) provides everything you need at 87% lower cost. You can always upgrade to full EDI software later when your business scales to the point where automation ROI justifies the investment.

Frequently Asked Questions