Nowadays, businesses are increasingly relying on technology to streamline their operations and enhance efficiency. Two commonly used technologies in this regard are Electronic Data Interchange (EDI) and Application Programming Interface (API). EDI is a technology that facilitates the exchange of data between businesses in a standardized electronic format. On the other hand, API allows various software applications to communicate with one another and exchange data in real time.

From Paper to Pixel: Understanding EDI

Electronic Data Interchange (EDI) is a technology that enables the electronic exchange of business documents and information between different companies. 

The benefits of using EDI are numerous. 

  • It helps to streamline business processes by automating manual tasks, reducing errors, and improving overall efficiency. 
  • EDI offers enhanced data security and accuracy compared to traditional paper-based methods. 
  • It can significantly enhance supply chain management by facilitating faster and more accurate communication between trading partners. 

How Does the EDI Integration Work?

EDI integration involves the exchange of electronic documents between two or more business systems. EDI services providing companies translate documents into a standard format that can be read by the recipient’s system. The documents are then transmitted through a secure communication channel such as the Internet or a private network. EDI Integration involves the process of connecting and integrating EDI data with a company’s internal systems and processes. 

Simplified Process of EDI Integration

The EDI integration process includes the following:

  • Planning
  • Configuration 
  • Mapping 
  • Testing 
  • Implementation

Choosing the Right EDI Integration Partner for your business

Choosing the right EDI integration partner or EDI network services provider is critical to the success of an EDI implementation. Factors to consider when selecting an EDI integration partner include:

  • Industry Experience
  • Command on Technology
  • Customization enabled 
  • Customer Friendly
  • Pricing

Complete Overview of EDI Managed Services

The device-to-device or the encrypted computer-to-computer exchange of business files and documents in a common digital(electronic) format is known as electronic data interchange or EDI.  EDI Managed Services are specialized services offered by third-party providers to help businesses manage their EDI operations.

Advantages of Using EDI Managed Services

  1. Cost-Effective
  2. Top-Notch Expertise 
  3. Scalability 
  4. Reliability
  5. Security

What is API?

API stands for Application Programming Interface, a set of protocols, tools, and standards that enable different software programs to communicate with each other. APIs define how software components should interact, and what data and services can be exchanged between them.

The Applications of API

  1. Social media platforms 
  2. E-commerce platforms
  3. Financial services industry 
  4. Healthcare industry
  5. Travel companies 
  6. APIs are used in IoT applications 
  7. Cloud computing platforms such as Amazon Web Services (AWS) and Microsoft Azure
  8. Marketing automation platforms 

Some Key Benefits of Using API in Real World

There are several benefits of using APIs, including:

  • Increased efficiency
  • Improved interoperability
  • Enhanced functionality
  • Better scalability

API Integration: How API integration works And the API integration process

The following steps are often included in the API integration process:

  • Identify the systems to be integrated
  • Understand the API specification 
  • Develop integration code
  • Test and deploy

Conclusion

EDI is a standardized method of exchanging electronic business documents between two or more companies while API is a collection of tools and protocols used to create software services and applications.  It is important to choose the right integration partner and consider managed service options to ensure the success of your integration.

Original Source: https://www.a3logics.com/blog/know-different-types-of-edi-services-and-which-one-suits-your-business-better