The EDI vs API Debate
For decades, EDI (Electronic Data Interchange) has been the standard document exchange system. API is becoming a popular alternative to EDI. It continues to gain use for trading partner communications within the supply chain. Which solution should you choose?
What are EDI and API?
Application Program Interfaces
API is the newcomer to information exchange. Since its development in the early 2000’s, API often find use in Cloud SaaS (Software as a Service) applications.
APIs quickly move data between one system and another. They enable devices to speak to each other in real time. Web service APIs provide easy integration to back end business systems.
APIs allow companies to leave parts of their software available or “open” so other software can easily integrate to them. One term you may encounter is “RESTful API.” REST stands for Representational State Transfer. It relies on a stateless, client-server, cacheable communications protocol, usually HTTP.
Electronic Data Interchange
EDI emerged during the 1970’s as a way to streamline business processes. These include ship notices, invoicing and purchase orders. It has been the long-time industry standard due to its security and reliability.
It establishes a set of messaging standards, transferring data from system to system without using paper. This reduces the need for manual labor.
EDI allows the exchange of business documents in electronic format. Trading partner companies can then transfer documents such as purchase orders, invoices, ASNs, BOL and more.
API Versus EDI Integration
So what’s the difference between API and EDI integration? Both transmit data from one business partner to another. But each has its strengths and weaknesses.
EDI vs API, Which Should You Choose?
Increasingly, trading partners may use a mix of APIs and legacy systems, including EDI. Another issue to consider is compliance and security. Some information, such as financial data, may be subject to audits. API integration may not be a suitable solution to adhere to compliance regulations.Contact Us Today!
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