Difference between EDI and API:
1) EDI (Electronic Data Interchange) is a structured data file that is formatted using any of the EDI standards XML, CSV, EDIFACT, ANSI X12 etc. Both organizations that are trading EDI documents between each other have to decide on a common EDI standard.
API stands for Application Programming Interface and is a collection of protocols and tools that facilitate the interaction and communication between software applications quicker than EDI does. Data transfer that can take hours for EDI, API can do it in minutes. APIs provide easy integration to back end business systems. APIs have no set standards
2) EDI has been around since the 1970s and has achieved a gold standard status in business by being widely accepted.
API is a fairly new concept developed in the 2000s to exchange data information between cloud SaaS applications.
3) EDI implementation may be more expensive than an API implementation considering on-going maintenance and support. However, EDI is more widespread and deeply engrained within organizations for it to be completely replaced with APIs.
Should I choose EDI or API?
This answer is generally not either/or and totally depends on your business needs. Businesses can and are making using of both technologies in tandem with each other because API gives deeper context to the back-end ERP integrations for example, while EDI helps with the initial order cycle.
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