The concept of a standardised data set being a key strategic activity for organisations is clear, and there are many great examples of how this approach has unlocked significant operational and commercial value. But many organisations are still at the decision stage – should you always choose modern, efficient APIs over the pensioner of EDI every time….?
Up to recently, the choice was straightforward – EDI. Since its introduction in the 1960s EDI has steadily gained traction as the preferred way to exchange documents in the B2B transaction process. However within our sector, adoption has remained stubbornly low – we estimate less than 3% of transactions occur via EDI with the business we work with.
The preferred method
The evolution of API has challenged EDI as the preferred method of data exchange, and there are many reasons for this:
- Classic EDI was designed in an era of batch business processes, so even today it is uncommon to use these formats for near real-time B2B communications, which firms increasingly require
- EDI is not a single standardised protocol, but has many dialects, creating possible friction when attempting to connect
- Information shared between two parties via EDI is still focussed on supply chain “milestones” for core business processes, such as PO notification, shipments or invoicing. Given it;s age it is clear why modern data requirements such as images, pricing, ingredients, allergens and ESG info is not able to be shared
- As an asynchronous point-to-point document exchange protocol that is normally file based, EDI enables firms to periodically exchange data, but not to engage in emerging, continuous digital business processes.
The future of the digital integration journey
Many of the points above were taken from IBM Sterling’s report into the Future of EDI. One aspect they focus on is that:
“By adding API capabilities to existing EDI integration already in place and performing well, enterprises don’t need to choose or invest in a separate infrastructure. Instead, they can unlock the power of efficient, effective and optimised collaboration with all trading partners.”
We wholeheartedly agree.
And of course, the inference is that for those organisations who are not embedded within the EDI world, then API is clearly the optimal place to begin the digital integration journey.
The choice of application and use case is far broader with an API based solution than EDI. The data which is shared using EDI is limited to sales order communication, shipments and invoices. It is akin to going to a car showroom today and driving away in a Morris Minor.
API gives you the ability to reimage your integrated communications approach. A direct digital connection to each and every one of your suppliers and customers. Realtime, always available communications and data sharing – pricing, promotions, shipping dates, order adjustments, ingredients, images, ESG – call can be unlocked with an API-based solution.
As a modern API-based data integration protocol, Cerve are Global experts in the Food and Beverage Supply Chain. We work with Distribution Partners and Suppliers alike to create seamless, real-time data exchange, covering the widest possible data set, to unlock a range of use cases and applications to reduce costs and increase revenues.
Contact David Walker at david@cerve.com to open up the data standardisation discussion.
