EDI vs. API Integration: What’s the Best Choice for Your Business?

As businesses look to streamline operations and improve data exchange efficiency, two popular technologies stand out: Electronic Data Interchange (EDI) and Application Programming Interfaces (APIs). While both are designed to automate data exchange, they cater to different needs. But which is the best choice for your business? In this article, we’ll break down EDI vs. API integration, helping you understand their key differences, advantages, and when to use each. What is EDI (Electronic Data Interchange)? EDI is a standard for exchanging business documents like invoices, purchase orders, and shipping notices electronically between systems, without the need for manual intervention. EDI eliminates paper-based processes, reducing the risk of human error and speeding up communication across different systems and partners. Advantages of EDI: Standardization: EDI uses predefined formats (like ANSI X12 or EDIFACT), making it suitable for global trade. Automation: Reduces man...