As supply chains become more digital, global, and complex, businesses are under growing pressure to modernize the way they connect, communicate, and operate.
Two of the most critical technologies enabling this transformation are Electronic Data Interchange (EDI) and Application Programming Interfaces (APIs). While both are used to exchange data between systems and partners, they work in fundamentally different ways—and understanding when and how to use each is key to building a future-ready supply chain.
In this blog, we’ll break down EDI vs. API, explaining their differences, and why EDI remains vital despite the rise of modern APIs. And, explore how combining the two can give your business the flexibility, speed, and scalability needed to thrive in today’s dynamic environment.
What is the difference between EDI and API?
Electronic Data Interchange (EDI) and Application Programming Interfaces (APIs) are both methods of exchanging business data, but they serve different purposes and operate differently.
EDI (Electronic Data Interchange) is a standardized method for exchanging structured business documents like invoices or purchase orders in batches—ideal for high-volume, stable transactions.
APIs (Application Programming Interfaces) enable real-time, flexible data sharing between systems, suited for dynamic tasks like live shipment tracking or inventory checks.
Understanding EDI vs. API is essential because each serves a distinct role. EDI excels at handling high-volume, standardized transactions, while APIs enable real-time, flexible data exchange.
By understanding their strengths, businesses can strategically use both to create a connected, agile supply chain that balances stability with speed and adaptability. This hybrid approach ensures seamless integration across partners, systems, and workflows.
EDI simplifies key transactions
EDI enables fast, structured, and automated data exchange between trading partners, which simplifies key transactions, such as sending orders, giving notice of deliveries, confirming receipt of deliveries, booking transport, sending invoices, among others.
EDI is understood globally and follows recognized formats, such as EDIFACT, ANSI X12 for seamless data exchange. It’s secure and efficient at handling large volumes of data transactions, but it can be complex and costly to set up the initial configuration and trading partner mappings, especially for smaller companies.
Despite being trusted and used for decades, for years now, many believed that EDI would be phased out and replaced by Application Programming Interfaces (APIs). However, given its value in delivering structured, error-free data exchange in an increasingly complex global marketplace, EDI usage continues.
Companies around the world, from suppliers and logistics providers to retailers and manufacturers, rely on an EDI strategy to exchange critical business documents securely, quickly, and in a standardized format.
APIs enable instant data exchange
APIs allow instant data exchange without waiting for batch processing and offer integration flexibility with a wide range of systems, such as CRMs, ERPs, analytics tools, and other cloud-based applications within your digital ecosystem. However, where EDI is all about standardization, API formats vary, requiring custom integrations with each partner, which can be costly and time-consuming in multi-partner environments.
Many businesses use APIs to communicate between disparate systems within their system chain. Since APIs provide real-time data exchange, this can improve supply chain transparency and visibility.
And, APIs connect to e-commerce platforms and support the integration of analytics tools, allowing businesses to gain insights into performance metrics and adapt to changing conditions.
The importance of a strategy that connects EDI and API
The supply chain workforce is changing. Some professionals are retiring, others joining don’t know much about EDI and want to go forward with API-first strategies.
There are also business challenges, like rising costs, but fewer resources, supply chain disruptions, and technology innovation initiatives, and more. Given these factors, it’s less about EDI vs. API, and more about taking a “best of both worlds” approach, which sets you up for success.
Rather than replace EDI, integrate it with APIs, other cloud platforms, and AI/ML, so you can enhance automation and flexibility within your digital ecosystem. This connected approach will reduce costs in the long term, improve operations despite possible disruptions and workforce changes, and ensure compliance with global standards.
With a connected strategy, you can bridge the gap between bulk transaction support and real-time data exchange, making it easier to handle high-volume processes and dynamic, immediate updates needed to keep the flow of business going.
You can more easily integrate with ERP systems, such as Microsoft Dynamics, Oracle NetSuite, Oracle Fusion, and SAP S/4HANA, that are already in place instead of ripping and replacing to make new technology fit with legacy technology.
How to get started with EDI and API integration
Every day you try to keep operations running smoothly, find ways to innovate and drive efficiencies, reduce costs, and simplify your supply chain. But you are asked to do this with limited resources and budget, making it hard to keep up with the speed of technology.
When managing all these connections and the information attached to them, it’s important to think long-term, not just one year at a time. You need solutions that evolve with you and continuously add new capabilities to assist you as your business grows.
You don’t have to go it alone. There are several solutions out there, but what you need is a partner and a solution that will take the time to understand your digital ecosystem, so everything is done right from the start.
Here are questions to ask when selecting an EDI and B2B integration solution and partner:
- Knowledge and Know-How: Can they ensure a successful implementation—on time and on budget?
- Automated Workflows: Can they help you find ways to reduce manual tasks and errors and increase productivity?
- Enhanced Visibility: Does the solution – as built out of the box – enable access up-to-date information for better decision-making, gaining insights into your supply chain operations?
- Cost Reduction: Will the solution reduce long-term costs, including total cost of ownership (TCO), and avoid hidden implementation fees?
- Compliance: Can they ensure adherence to industry standards and regulations?
- Ongoing Support: Will you receive regular customer support, including help with data validation and mappings from onboarding through implementation and after go-live?
EDI and APIs: How OpenText can help
OpenText Business Network supports both EDI and API-based integration—allowing businesses to connect with all partners, regardless of their technology maturity. This hybrid approach ensures end-to-end visibility, flexibility, and scalability across your digital supply chain.
OpenText’s B2B Integration solutions create a unified environment connecting your ERP system (Microsoft Dynamics 365, Oracle NetSuite, Oracle Fusion, SAP S/4HANA, etc.) with EDI and APIs in one digital ecosystem.
OpenText offers pre-built ERP EDI-to-API adapters on a modern, scalable B2B platform and VAN—enabling faster deployment without requiring deep EDI expertise.
Our trusted, flexible solutions let businesses connect once to everything. With our expertise, you’ll streamline supply chain operations and build a foundation for innovations like AI/ML that maximizes your business data value.
Ready to get started? Learn more about OpenText’s Easy EDI integration.
