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API Vs EDI, Which One Should You Choose?

API Vs EDI, Which One Should You Choose?
Application Programming Interface (API) and Electronic Data Interchange (EDI) are the building blocks of any highly optimized supply chain management system. Both the interfaces permit a safer and swift data exchange between systems.

However, even though API and EDI are largely used across numerous business software solutions, they certainly have their difference. These differences must be understood to make an informed decision when it comes to choosing the software best suitable for your requirements.

EDI has been around for few years now and thus is more widely adopted. API is slowly gaining more popularity among users, and is becoming a preferred choice for the data transfer activities. Analyzing each software will help us to understand how they operate.


API or Application Programming Interface, is a series of programming standards and instructions for gaining access to web-based software applications that permit the software platforms to exchange information. API acts as an interface between different software programs and supports them to interact efficiently. This also allows the software systems to interact with each other without any sort of interventions from the users.

API offers real-time linking between software applications that helps them in exchanging data inside a second. Such fast data exchange allows all the information to be updated quickly without any manual interference.


EDI or Electronic Data Interchange is highly popular communication technology that’s used to efficiently transfer information from system to system. It offers companies a secure and easy way to transfer data to other companies electronically. It uses the standardized electronic formats, which is simple for systems to process the data, while significantly cutting down or even eliminating the need for manual intervention.

There is no reason to worry about data security as EDI solutions are developed to offer access only to pre-determined and authorized users, and to use archives and audit trails to precisely monitor use. EDI is one the most secure ways for exchanging data.

With the help of EDI, companies can send large amount of information at the same time, including the capacity to exchange large quantities of documents in a single transfer. This is not only efficient and convenient, but also contributes hugely in minimizing any possible inaccuracies.

API Vs EDI, Which One Should You Choose?

API system has some innovative features that are responsible for its growing popularity. However, EDI still holds its ground because of its robust reliability and security features.

In the end, the individual requirements determine the choice between API and EDI. There are numerous software available in the market thus, clearly defining your requirements becomes critical.

EDI is an older technology; however, as it’s been utilized for so many years, it still is a highly popular standard, which also makes it a safer and convenient option since many companies have installed it.

On the other hand, API technology is new and not so widespread. However, its features for seamlessly syncing web applications makes it a strong candidate for extensive use in the future.

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About The Author

Anuprit Orse

Anuprit brings a vast experience across functions viz. business management, key account management, and sales operations & has a keen eye for identifying, nurturing and developing new opportunities and has proven record of connecting businesses. Being a focused entrepreneur, Anuprit also offers his edge as an influencer and seed funder to budding enterprises. Over the last 15 years’, he has helped set up several ventures – Prolific Sales Pvt. Ltd., SG Cubes Pvt. Ltd., Business Morphosis, and Creazione IT Solutions. All these have gone on to deliver ample success in the subsequent years. Anuprit has also worked as an independent consultant to a number of companies ranging from start-ups to Fortune 1000 assisting them close deals with companies like HP, Xerox, AWS, Microsoft, Air Canada, Northrop Grumman, Cisco, SAP, Adobe & Honeywell Automation. Here, he assisted them in devising precise strategies to identify customer segments for their respective products and services. He also has a strong knack of devising successful marketing campaigns resulting into a distinct growth of businesses.