How does EDI work?
The EDI process operates without the need for paper or human intervention.
An Electronic Data Interchange (EDI) solution enhances the reliability of information exchanged among businesses. By removing manual and duplicate data entry, companies experience fewer errors. EDI solutions leverage ERP system data, not just facilitating information transfer, but also guaranteeing its accuracy and compliance with transaction conditions. Consequently, businesses cultivate stronger relationships with trading partners, reducing costly chargebacks, late deliveries, and pricing discrepancies.
Difference between API and EDI
| Features | API | EDI |
| Accessibility | Cloud Based | File Based |
| Interaction | Bidirectional communication | One-way communication |
| Speed | Real-time data exchange | One-way communication |
| Updates | Individual transactions | Batch data |
| Setup | One-to-Many connections | One-to-One connections |
When considering API vs EDI, the answer may not be an either/or situation. While EDI is likely to continue to handle the majority of B2B interactions, businesses are increasingly using a mix of API and EDI integrations.
EDI solutions are designed to exclusively grant access to pre-approved users, featuring audit trails and archives to monitor usage and uphold security measures. By employing electronic confirmations to verify document receipt, they promote transparency within business interactions.