Wal-Mart Moving to Internet-based EDI


Via Frank Scavo comes this news about Wal-Mart requiring Internet-based EDI as opposed to older, VAN-based EDI connections to all of its suppliers by October. Wal-Mart, of course, is an 800-pound gorilla and suppliers are falling all over themselves to meet the deadline. From the article:

Black & Decker and drugmaker Abbott Laboratories are among a handful of major companies that this week said they have purchased and installed special software to help meet new requirements for doing business with Wal-Mart, the world's largest retail chain, with more than 4,700 stores around the globe. ... Although Wal-Mart declined to specify the dollar value of the various projects, one analyst estimated Wal-Mart suppliers are collectively spending tens of millions, if not hundreds of millions, of dollars on software to comply

The big winners are EDI software system companies like webMethods and Tibco. The losers are the operators of the value added networks like GE and Sterling Software, although GE is making the move to provide Internet-based services as well and retain the business.