EDI is commonly used for structured, standardized, batch-oriented B2B document exchange. APIs are commonly used for real-time access to system functions and data through synchronous calls.
EDI vs. API
for B2B Integration
EDI and APIs are both integration technologies for exchanging data between systems, but they are designed for different communication patterns. EDI is used for structured, standardized, often batch-based B2B document exchange with trading partners. APIs provide real-time access to system functions and data, often through synchronous calls. For many B2B integration scenarios, the strongest approach is not EDI or API alone, but the right combination of both on one integration platform.
Key takeaways
- EDI is well suited to structured, high-volume B2B transactions, long-term trading-partner relationships, and industry-specific message standards.
- APIs are well suited to real-time access, modular requests, API-enabled cloud applications, and sequential business processes.
- EDI and APIs can complement each other when real-time and file-based processes run on a shared integration platform.
What are EDI and APIs in B2B integration
Electronic Data Interchange (EDI) has been used for decades to connect external B2B systems and trading partners. It exchanges structured business data electronically and supports automated supply chain processes without paper-based or manual handling.
Application Programming Interfaces (APIs) provide system functions in real time so other applications can access and use them. In B2B integration, APIs can complement EDI when processes require real-time interaction, modular requests, or access to API-enabled applications.
How do EDI and APIs support supply chain processes?
In supply chain-oriented industries, EDI is a standard method for system-to-system information exchange. It has supported supply chain management since the 1970s and continues to play an important role in automotive, logistics, consumer packaged goods, retail, manufacturing, and utilities.
EDI typically uses a file-based or batch communication style with asynchronous calls. Over time, this structured approach has led to EDI messaging standards used across industries and regions.
APIs have a long track record as software interfaces to web services and systems. The API approach used today developed from service-oriented architecture, REST, and web services over HTTP. For B2B transactions that need real-time interaction, REST or RESTful web services can provide interoperable access to textual representations of web resources through predefined stateless operations.
What is the difference between EDI and API?
EDI and APIs are both integration technologies, but they differ in history, communication style, message formats, data-size expectations, typical scenarios, error handling, standards, and business drivers.
| Dimension | EDI | APIs |
|---|---|---|
| History | Established since the 1970s and grown over time. | SOAP has been available since around 2000; REST has grown in cloud and web-service contexts. |
| Transport protocol | Various protocols, including AS2, AS3, OFTP2, SFTP and others. | HTTP/S as the underlying transport protocol for API calls. |
| Call pattern | Asynchronous calls with acknowledgement messages for structured data. | Synchronous calls for real-time exchange of structured data. |
| Message format | EDIFACT, ANSI X12, and other standardized formats. | XML, for example AS4, and JSON for REST. |
| Format description | Message guidelines. | OpenAPI standard, Swagger, and WSDL. |
| Directory of available formats | Relevant EDI guideline. | API catalog of the API provider. |
| Data size | Capable of handling mass data. | Not intended for mass data. |
| Typical scenarios | Batch-driven processing, system-to-system exchange, data conversion, and B2B/EDI connections to external trading partners via AS2, OFTP2, or VAN. | Near-real-time information requests, real-time booking in sequential steps, Enterprise Application Integration (EAI), and connections to API-enabled cloud applications. |
| Content error handling | Due to asynchronous batch file processing, error handling typically takes place in the application, such as the ERP system, that books the received files. | Due to the synchronous approach, an error typically stops the API call and error handling takes place on the sender side. |
| Standards | Highly standardized with industry-specific flavors. | No widespread and established standards. |
| Business drivers | Process optimization and cost reduction in long-term business partnerships. | Digitalization, data monetization, and new integration approaches, including ad hoc integration. |
Figure 1: EDI vs. API comparison table
It is technically possible to replace established EDI B2B integration technologies with APIs, but each organization must determine whether replacement is feasible for its business processes, partners, standards, and data volumes. Optimal business value comes from choosing the right integration technology for the use case.
When should you use EDI, APIs, or both?
Use EDI when the integration scenario depends on structured, standardized, high-volume document exchange with trading partners and industry-specific message formats.
Use APIs when the integration scenario depends on real-time access, modular information requests, sequential business steps, or API-enabled applications.
Use both when batch-oriented B2B processes and real-time interactions need to work together. In these scenarios, EDI and APIs can complement each other as part of a broader B2B integration strategy.
How can EDI and APIs work together on one platform?
EDI and web service APIs can work together on one platform. APIs can add real-time access to B2B transactions, while EDI continues to support structured, file-based batch processes.
The SEEBURGER BIS Platform supports this one-platform approach by enabling B2B integration scenarios that include EDI and APIs, as well as Managed File Transfer (MFT), Industrial Internet of Things (IIoT), and e-invoicing. The platform offers more than 55 communication adapters for integration scenarios across these areas.
Frequently asked questions about EDI vs. API
What is the main difference between EDI and API?
Is EDI still used in supply chain integration?
Yes. EDI continues to support supply chain processes in industries such as automotive, logistics, consumer packaged goods, retail, manufacturing, and utilities.
Are APIs better than EDI for real-time processes?
APIs are often more suitable for real-time business processes because they support synchronous calls and modular requests. That does not make them a replacement for every EDI scenario.
Can APIs replace EDI?
APIs can technically replace some established EDI B2B integration technologies, but every organization must assess whether replacement is feasible for its processes, partners, standards, and data volumes.
When is EDI the better choice?
EDI is often the better choice for batch-driven processing, system-to-system exchange, mass data, data conversion, and B2B connections to external trading partners through protocols such as AS2, OFTP2, SFTP, or VAN.
When is an API the better choice?
An API is often the better choice for near-real-time information requests, real-time booking in sequential steps, Enterprise Application Integration, and connections to API-enabled cloud applications.
Can EDI and APIs work together?
Yes. EDI and APIs can complement each other when real-time API processes and file-based EDI processes run on the same integration platform and can interact with each other.
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