APIs versus EDI: What You Need to Know?
EDI (Electronic Data Interchange)
EDI = Electronic Data Interchange Definition: Electronic exchange of standard business documents such as purchase orders, invoices, inventory levels and shipping notices between companies. EDI eliminates the manual processes involved in ordering and distribution, creating seamless electronic trading between both buyer and supplier. EDI uses a standardized messaging format that replaces the need for human intervention. Before the age of EDI, exchanging data was carried out on paper. Supplier either had to mail documents or deliver them personally. EDI reduces costs and improves operational efficiency across the organizations. Because electronic exchange is so efficient, customers like Amazon, Walmart use EDI prefer to work with vendors that have EDI systems in place.
API
An API (application program interface) is a set of routines, protocols, and tools for building and integrating software applications.
Think of an API like a menu in a restaurant. The menu provides a list of dishes you can order, along with a description of each dish. When you specify what menu items you want, the restaurant’s kitchen does the work and provides you with some finished dishes. You don’t know exactly how the restaurant prepares that food, and you don’t really need to.
Similarly, an API lists a bunch of operations that developers can use, along with a description of what they do. The developer doesn’t necessarily need to know how, for example, an operating system builds and presents a “Save As” dialog box. They just need to know that it’s available for use in their app.
APIs are capable of syncing with partners whenever there is a change in benefits. That said, some partners only offer instant syncing for certain actions.