When to use APIs vs EDI

#API #EDI

As businesses continue to look for more efficient ways to conduct business and trading, the question of whether to use EDI or API arises. EDI has been the standard method of document exchange for over 50 years, while APIs are a newer technology that is growing in popularity.

The main difference between EDI and API is that EDI is an asynchronous call for batch exchange, while API is a synchronous call for real-time exchange. EDI is designed to handle mass data, making it suitable for batch data conversion of bundled information via system-to-system. On the other hand, API is not intended for mass data and is best suited for real-time single request for information.

Another difference between EDI and API is that EDI has established messaging standards set with industry and region-specific options, while API has no widespread and established standards. However, API integration may be easier for new partners, especially those who are pre-connected to the provider’s network. EDI is a trusted solution to fulfill compliance regulations, while API may not be suitable to adhere to compliance regulations, especially those related to sensitive financial data.

When deciding between EDI and API, businesses should consider the advantages and disadvantages unique to each system. API implementation may be less costly than EDI, but it may require increased complexity in adding new trading partners and collaborating on communication standards. Businesses may also choose to use a mix of API and EDI integrations to handle different types of interactions.

Robust EDI software with API capabilities can offer businesses the best of both worlds. It allows businesses to handle batch data conversion of bundled information via system-to-system using EDI, while also providing real-time single requests for information using API. This type of software can also provide easy integration to back-end business systems using web service APIs, reducing the complexity of adding new trading partners.

In conclusion, while EDI remains the standard document exchange method, API is growing in popularity as a real-time data exchange alternative. The choice between EDI and API depends on the unique needs and preferences of each business. However, robust EDI software with API capabilities can provide businesses with the best of both worlds, offering both batch data conversion and real-time data exchange options.