Changed EDI providers with weeks to spare before a critical deadline
Moved from sales-led conversations to practical technical expertise
At a glance
- v2food needed to set up EDI for a new Sydney factory, but after four months the project had stalled and the basic scope was still unresolved.
- The v2food project manager was increasingly frustrated by the over-engineered solutions suggested by the incumbent provider and anxious about the timeline, cost and complexity for what should be a simple solution. The conversations felt very sales-led.
- v2food decided switching providers and starting from scratch was less risky than trying to continue with the incumbent.
- After v2food reached out to MessageXchange for help, MessageXchange quickly understood the requirements, designed a fit-for-purpose hybrid solution and provided a compelling cost-benefit case.
- Within weeks, v2food met its critical project deadline and launched on time.
- The switch delivered thousands of dollars in year-on-year savings and a payback period of less than a year.
- v2food now has a trusted EDI partner for retailer onboarding, change management and responsive technical support.
- v2food encourages other suppliers to compare the true cost of staying with their current EDI provider before a critical issue forces the decision.
“MessageXchange was agile and understood the brief very quickly. They listened properly and focused on solving, not selling. Their support during the transition was extremely responsive. Looking at who we were working with before, I would never go back.”
“EDI is one of those costs that go unnoticed by businesses, because for 90% of the time, it “runs quietly in the background”. However, the switch has delivered a material YoY cost benefit as well as an EDI partner that is so much more competent, responsive and solution-oriented for both operational issue handling and complex change management.”
Neran Maddugoda, Operations and Supply Chain Manager, v2food
Background
v2food is a leading Australian plant-based brand, supplying chilled and frozen meat alternatives to major retailers and food service businesses, such as Coles, Woolworths and PFD Food Services.
For v2food, EDI is essential for trading with major retailers like Coles and Woolworths, and the most efficient way to manage orders with integration to their NetSuite ERP system.
Before switching to MessageXchange, v2food relied on a global EDI provider. Despite investing significant time in a new project, progress stalled. Deadlines were at risk, technical discussions struggled to move forward and meetings often felt more focused on additional products and services rather than solving the issue at hand.
Challenge
When v2food purchased a factory in Sydney, the team needed to set up a new EDI location so that it could dispatch from the new site.
The project was business-critical and urgent. v2food needed a lightweight EDI solution that could be delivered by the February 2025 launch date.
However, the project soon lost momentum. The solution proposed by the EDI provider was more complex than it needed to be, meetings often involved different stakeholders and v2food felt discussions increasingly focused on additional products and services, rather than delivering the project.
As the deadline approached, v2food needed a partner that could simplify the project and get it moving again.
After four months, the basic scope still had not been determined. Multiple leaders from v2food also had to get involved, including the CFO, Head of IT and Head of Supply.
“We had nine meetings with over 11 representatives from their business and still could not agree on the project deliverables. A lot of the time was spent explaining that their proposed design did not need to be so complex or expensive and that it still did not meet basic requirements of the brief – they just were not listening. That was the tipping point where we needed to change tack, even though it was risky, because we were running out of time.”
— Neran Maddugoda, Operations and Supply Chain Manager, v2food
Contract flexibility posed another challenge.
“We were told we had to sign a contract to allocate resources to and commence the project. Then we were locked into it and had to pay for not finishing it. The provider was very rigid. We ended up paying for a project that never reached an agreed scope and a service which we stopped using in February but continued paying for till September. No amount of escalation could change that,” Neran said.
However, with little time left, v2food decided the greater risk was staying with its existing provider.
Solution
v2food contacted MessageXchange to see whether the project could still be rescued, and the difference was immediate.
“MessageXchange understood what we wanted, and the predicament we were in. They were not trying to sell. They were trying to solve for what we need.”
v2food needed a practical, cost-effective approach that suited their order volumes, without full integration.
As a result, MessageXchange focused on understanding the operations and designing a custom hybrid solution that met v2food’s exact requirements. This involved its EDI Gateway and its EDI web portal, called Colladium:
- The Gateway connects to v2food’s NetSuite ERP system and retailers. It handles EDI message flows, file translations, message routing logic and error reporting.
- Colladium is used by the company to receive purchase orders, and generate ASNs (advanced shipping notices) with SSCC labels, and invoices.
MessageXchange supported v2food throughout the transition with a practical, straightforward approach. Direct access to analysts and integration consultants helped resolve technical challenges quickly and gave key stakeholders, including the Head of IT, confidence that the project would be delivered.
“MessageXchange came from a technical point of view, whereas our provider at the time focused more on selling. It’s important to cut through the nonsense, and that’s what MessageXchange did,” Neran said.
Results
Major cost savings
Although switching EDI providers involved initial set-up costs, MessageXchange helped v2food turn a risky decision into a clear business case, which moved the project through internal approval quickly.
“We knew immediately that we had made the right choice. Within our first two meetings, MessageXchange provided both a solution and a compelling enough cost-benefit story to say, ‘Look, the project can be saved and we’ll even be saving thousands of dollars year on year.’ The ongoing saving paid back the setup costs in less than a year and was healthy enough for our CFO to sign off without hesitation.”
The ROI met v2food’s internal payback threshold for the CapEx required to move to MessageXchange.
Fast project delivery
Within weeks, MessageXchange helped v2food move the project forward and meet the deadline.
“We met the timeline with not much time left. MessageXchange really dug us out of a hole. They helped confirm our view on how easy this should be.”
Excellent EDI expertise and support
For v2food’s current size, volumes and operations, the hybrid EDI setup supports its trade effectively without disruption.
“The tool and service are solid, and work really well. MessageXchange does what a good EDI platform should do, which is running in the background with no issues.”
v2food found that while a large global EDI provider may seem like a safer choice, MessageXchange provided an excellent service, in-depth understanding of Australian suppliers, and a smooth retailer onboarding process.
“I had worked with MessageXchange before at a business that handled a much higher message volume than v2food, and we never experienced any issues that were not promptly resolved,” Neran said.
Pain-free change management
EDI can feel invisible when everything is working, until a problem arises. That was where v2food saw a clear improvement.
“With our previous EDI provider, you wouldn’t notice them until you have an issue, and then they became the bane of your existence. But when we have to make a change, there’s a very significant difference with MessageXchange: the speed at which they respond, the effectiveness and the fairness in how they charge you for support.”
Commercial practicality and flexibility
For v2food, another important difference was the way MessageXchange handled commercial conversations.
“MessageXchange is fair and has common sense when it comes to contracts and negotiations. It’s very easy to talk to account managers and have normal B2B conversations.”
In contrast, v2food found their previous EDI provider highly complicated, with rigid contracts that left no room for discussion.
Advice for suppliers
v2food’s advice to other suppliers struggling with their current EDI provider is simple: compare the numbers and see what the current setup is really costing you.
EDI may only become noticeable when there is a problem. That makes it easy to stay with a provider that feels “good enough” until a change, issue or contract problem suddenly exposes the friction.
“Your EDI provider probably isn’t something you think about, until something goes wrong. You want to be with MessageXchange when you’re there. Anyone who’s dealt with the two companies would say the same.”
v2food recommended some practical steps that companies can take.
“Reach out to MessageXchange with your current contract, ask what they can do, then take that cost-benefit case back to the business. You may realise how much money you’re wasting on what should be a simple service to provide. Don’t find yourself in the critical situation we found ourselves in and get on the front-foot – your future self will thank you for it.”
Ready for a better EDI experience?
Like v2food, you may find that switching is still safer than staying with the wrong provider. Don’t wait until the next EDI issue happens. Let’s chat about what a better EDI setup can look like for you today.