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EDI

EDI vs API

EDI and APIs both move business data between systems, but differently. EDI exchanges standardized batch documents like the 850 purchase order and is the entrenched standard in retail supply chains. APIs exchange real-time structured data, usually JSON, and dominate modern software. Most distributors need both, because their partners are split between them.

Key differences

EDI is document-oriented, batch-based, standardized as X12 or EDIFACT, and required by large retailers. APIs are transaction-oriented, real-time, and flexible, but there is no single API standard across retail. EDI is mature and auditable; APIs are faster to integrate when both sides control the specification.

Why you usually need both

A distributor's large retail partners mandate EDI, while ecommerce platforms and newer buyers expose APIs. Forcing every partner through one channel breaks somewhere. A platform that speaks EDI, API, and document extraction covers every partner without picking a side.

Related Terms

EDI (Electronic Data Interchange)
EDI (Electronic Data Interchange) is the computer-to-computer exchange of business documents like purchase orders and invoices in a standard electronic format. It replaces paper, fax, and email so two trading partners' systems can transact directly, without anyone re-keying the data.
ERP (Enterprise Resource Planning)
An ERP (Enterprise Resource Planning) system is the central software a company runs its operations on, tying together finance, inventory, purchasing, sales orders, and fulfillment in one database. When an order arrives, the ERP is where it becomes a sales order, gets picked and shipped, and is invoiced. Examples include NetSuite, SAP, and Microsoft Dynamics.
EDI Capable
Being EDI capable means a company can send and receive business documents electronically in a standard EDI format that its trading partners accept. A retailer asking if you are EDI capable wants to know whether you can exchange orders, invoices, and ship notices as compliant X12 transactions without manual handling.

Learn More

ERP-EDI Integration GuideMulti-Format Order ProcessingERP Integration

Frequently Asked Questions

Not in retail. EDI still carries most order volume and remains mandatory with large retailers. EDI and APIs coexist, each handling the partners suited to it.

EDI exchanges standardized batch documents and is the established retail standard. An API exchanges real-time structured data, usually JSON, and is common in modern software integrations.

Sources: ASC X12 standards body

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