Will API replace EDI?

In 2015 Electronic Data Interchange took a few headlines when data in supply chains took Centre stage. In 2016, however, predictions were made with suggestions that it would be faced out in favor of nimbler and newer technologies. We learned more on the potential of new technologies at disrupting data interchange. These new technologies include API.

On the confusion whether EDI is a protocol or a technology, EDI Integration is a technology used for transmitting data across systems. It is a tool for communication and not a business protocol as earlier thought of. It has been there for a very long time. It was started in the 1970s. The technology has not been modernized with the growing internet capabilities, unlike most of the other technologies which have become sophisticated in over the past 45 years. Although it seems like a very crucial tool for communication in the industry, it has a little value as compared with innovative and newer options such as Application Program interfaces (API).
 
The Electronic Data Interchange increases the cost of freight transportation due to its technical shortfalls. This has created high inefficiencies and limited end-to-end visibility. With this technology, 3PLs and shippers are spending less time on revenue generation and more time on administrative tasks. They lack access to big data which is required to make effective business decisions. The Electronic Data Interchange carries out data transmission over timers. Just like fax machines, information is stored and forwarded with no confirmation. The storage delay leads to daily occurrences that increase missed pickups and requires more emails and calls to manage the automated processes.
 
Those who continue to use the Electronic Data Interchange are going to stay. Although EDI has many challenges in the current supply chain. It is too rigid, expensive to maintain and difficult to implement in a very dynamic market, it is reliable, stable and popular among many industries. On the other hand, the future of supply chain lies in the use of APIs. They are a message format allowing faster data transmission between systems. It increases revenue and productivity for businesses in the process. The code is also simplified by defining how a program interacts with other software, thus saving IT resources, time and data entanglements.
 
Setting up Electronic Data Interchange integration may take months with more cost. This is due to the time consuming and cumbersome implementation process required. However setting up of the Application Program interfaces is a onetime process, which results in accessing the entire carrier network. The code here is structured and simple. It will take about a week to connect 3PL and shippers to the network completely. Amosoft uses both EDI and API to help transportation companies in all stages of IT development and building best-in-class integration platforms. In the process, it ensures a worry-free and seamless implementation experience.