API vs EDI: Key Differences and Integration Benefits
APIs and EDIs handle data exchange differently, but both remain key technologies in logistics and supply chain operations. Let's break down how they work, their differences, and when to use each.
What is EDI?
Electronic Data Interchange (EDI) transfers business documents between companies using standardized formats. It's been the backbone of business communication since the 1970s, particularly in shipping and logistics.
EDI works by converting documents like purchase orders, invoices, and shipping notices into a standard electronic format. Companies like Maersk use EDI to exchange shipping information with their partners.
Common EDI Standards
- ANSI X12 (North American standard)
- EDIFACT (International standard)
- TRADACOMS (UK retail standard)
What is API?
Application Programming Interface (API) is a modern way for software systems to communicate directly. APIs use web protocols to send and receive data in real-time, making them faster and more flexible than EDI.
APIs excel at quick, small data exchanges. They're perfect for tracking containers, getting rate quotes, or checking shipment status.
Key Differences Between API and EDI
Data Format
EDI uses fixed data formats with strict rules about document structure. APIs typically use JSON or XML, which are more flexible and easier to work with.
Speed
APIs provide real-time communication. EDI often works in batches, processing multiple documents at set intervals.
Implementation
EDI needs significant setup time and technical knowledge. APIs are usually faster to implement and require less specialized expertise.
When to Use Each Technology
Choose EDI When:
- Working with large retailers or shipping lines that require EDI
- Handling high-volume, standardized transactions
- Dealing with partners who use legacy systems
Choose API When:
- You need real-time data exchange
- Building modern, cloud-based solutions
- Integration speed is a priority
- Working with newer technology partners
Integration Challenges
Both technologies come with their own integration hurdles. EDI requires mapping between different formats and maintaining compliance with standards. APIs need ongoing maintenance and version management.
But here's the good news: modern solutions can help you manage both. Melrose's AI-powered platform simplifies these integrations, letting you connect with partners using either technology.
Real-World Applications
EDI Use Cases
- Shipping line bookings with Maersk
- Container terminal communications
- Purchase order processing
- Invoice exchanges
API Use Cases
- Real-time container tracking
- Rate quote requests
- Equipment availability checks
- Instant booking confirmations
The Future of Data Exchange
While EDI isn't going away, APIs are becoming more common. Many companies now use both technologies together, getting the best of both worlds.
New AI-powered solutions are making integration easier. For example, Melrose's new EDI product can set up EDI integrations in days instead of months, using AI to convert custom EDI specs into TMS and API formats. We believe that systems should be compatible across the board, whether its API, EDI, or even unstructured data.
Common Integration Partners
EDI Partners
- Maersk
- Blume
- Major retailers
- Terminal operators
API Partners
- Maersk
- Opentrack
- Flexivan
- Modern logistics platforms
TMS Integration Options
Your Transportation Management System (TMS) needs to work with both EDI and API data. Common TMS platforms that support these integrations include:
- Custom TMS solutions
- PortPro
- Macleod
- Cargowise
Getting Started
Start by mapping your current integration needs. Which partners require EDI? Who offers API connections? Then consider a solution that can handle both.
Modern platforms like Melrose can help you manage EDI and API connections in one place. This reduces complexity and speeds up partner onboarding.
Ready to simplify your integrations? Book a demo to see how Melrose can help you manage both EDI and API connections efficiently.