Why use EDI? Relevance, benefits, and future

Many believe that Electronic Data Interchange solutions are outdated, soon to be replaced by APIs. But the numbers tell a different story—EDI usage continues to grow, proving its value in structured, error-free data exchange. Companies rely on it for transactions that demand security, efficiency, and compliance with global standards.

Keep reading to learn why it is still widely used, what makes it so effective, and where it’s headed next.

Is EDI Still Relevant?

Electronic Data Interchange is still a core component of global business transactions, and its adoption continues to grow. And businesses still rely on it heavily.

Supply chains, logistics providers, retailers, and manufacturers depend on it to exchange critical business documents quickly, securely, and in a standardised format. Unlike some emerging technologies that require extensive changes to existing systems, EDI is a well-established, proven solution.

As the old saying goes, “If it isn’t broken, don’t fix it.” Companies that have built their processes around it see no reason to abandon a system that efficiently handles orders, invoices, and shipment notifications.

Instead of replacing EDI, many businesses are enhancing it with APIs, AI-driven analytics, and cloud-based platforms to improve flexibility and automation.

Some maintain in-house, while others switch to managed EDI services and outsourcing to providers like Comarch.

Why EDI is important

EDI enables fast, structured, and automated data exchange between trading partners. It eliminates the need for manual document handling, reducing errors and accelerating business processes.

By standardising communication, it simplifies key transactions, including:

• Sending orders
• Informing about deliveries
• Confirming deliveries
• Booking transport
• Sending invoices

Why Use EDI? 5 Benefits

1. Cost Efficiency

EDI reduces expenses associated with paper-based processes, including printing, storage, filing, and mailing. Integration with cloud-based systems, such as CRMs and analytics tools, allows businesses to cut operational costs even further and minimise resource usage.

2. Accelerated Commerce

EDI speeds up supply chain operations by automating order processing, invoicing, and shipment tracking. It also minimises manual errors that cause delays, ensuring transactions move smoothly from one stage to the next.

3. Enhanced Accuracy

With API-driven connectivity, EDI improves data reliability by reducing human intervention in data entry and document handling. This translates into fewer fulfilment errors, fewer vendor disputes, and greater consistency in business transactions.

4. Data Enrichment

On top of transferring data, EDI also enhances it. By integrating with various systems like ERPs, CRMs, WMS, and more, it allows businesses to gain real-time insights into customers, orders, inventory, and more. This integration provides valuable data that helps companies make informed decisions and improve customer interactions. Additionally, data can be enriched either through pre-established dictionaries or by manual processes, ensuring that the information remains accurate and relevant.

5. Heightened Productivity

Thanks to EDI automating repetitive manual tasks, employees can now focus on activities requiring human intervention, such as supplier management, business expansion, and customer service improvements. Instead of handling paperwork, teams can drive innovation and growth.

EDI vs. API: Which is Better?

While both Electronic Data Interchange and Application Programming Interfaces (APIs) coordinate data exchange, they fulfil distinct business purposes. For organised, automated transactions, it has long been the industry standard, but APIs offer flexibility and real-time communication. Select the best option by analysing your company’s current needs and future plans.

API: Pros and Cons

✅ Pros:

• Real-time communication – Instant data exchange without waiting for batch processing.
• Flexibility – Easily integrates with a wide range of systems within the customer’s digital ecosystem, including modern cloud applications, CRMs, ERPs, and analytics tools. It ensures that APIs can adapt to various business needs.
• Instant data access – Enables immediate updates and responses for improved customer service.

❌ Cons:

• Lack of standardization – API formats vary, requiring custom integrations for each partner.
• Costly customization – Businesses must invest in development and maintenance.
• Complexity in multi-partner environments – Managing multiple APIs can create integration challenges.

EDI: Pros and Cons

✅ Pros:

• Standardisation – Uses globally recognised formats (e.g., EDIFACT, ANSI X12) for seamless data exchange.
• Reliability – Ensures secure, structured transactions with minimal errors.
• Efficiency – Automates bulk data processing, reducing manual intervention.

❌ Cons:

• Complex setup – Requires initial configuration and mapping.
• Batch processing limitations – Data isn’t exchanged in real time like APIs.
• High initial costs – Implementation can be costly, especially for smaller businesses.

Choosing the Right Solution

Use EDI if you need:

• Structured, standardised communication with multiple trading partners.
• Bulk transactions (e.g., invoices, orders, shipment notices) are a key part of your business.
• Reliability and security are more important than real-time speed.

Use API if you need:

• Real-time updates and instant data access.
• Modern cloud-based platform integration.
• Flexibility to adapt to different partner systems without rigid standardisation.

Combine EDI with APIs: Best of Both Worlds

A hybrid approach that combines EDI with APIs offers businesses the best of both worlds. This method bridges the gap between bulk transaction support and real-time data exchange, making it easier to manage high-volume processes and dynamic, immediate updates.

While traditional Electronic Data Interchange remains crucial for structured, bulk data exchange, APIs offer the flexibility and speed required for real-time interactions, especially with cloud-based applications like WMS and ERP systems. Platforms like Comarch support both traditional integration and API-driven connectivity, ensuring that businesses can manage and optimise their operations across various touchpoints.

Key Benefits of Combining EDI and APIs

Benefit	EDI’s Role	APIs’ Role
Bulk Transaction Processing + Real-Time Updates	Provides structured, efficient data exchange	Provides instant, real-time data updates
Integration with ERP, WMS, and Other Systems	Integrates with legacy systems	Supports integration with modern cloud-based applications
Integration Flexibility	Supports integration with many systems, especially in B2B environments	Offers the flexibility to scale and integrate new systems
Accuracy and Reduced Errors	Ensures structured data exchange	Reduces errors by enabling immediate data corrections
Simplified Compliance	Ensures compliance with industry regulations	Helps meet evolving regulatory requirements through real-time data exchange
Faster Response Times	Efficient for batch processing but may have slower real-time capabilities	Enables businesses to respond quickly to market changes

The Future of EDI

Based on its history and adaptability, Electronic Data Interchange is certainly not going away. Businesses are integrating both EDI and APIs to balance efficiency and real-time data exchange. Instead of being phased out, it is adapting to modern digital ecosystems.

One major trend is the growing adoption among small businesses, driven by SaaS-based solutions and web platforms that reduce the complexity of traditional implementations. These solutions make it more accessible, allowing smaller companies to connect with large trading networks without heavy infrastructure investments.

At the same time, global standardisation efforts—such as PEPPOL and country-specific e-invoicing regulations—are reinforcing Electronic Data Interchange’s role in international trade. As compliance requirements grow, businesses rely on it to meet regulatory mandates, including e-reporting and legal requirements for exchanging logistics documents, while ensuring secure, structured, and error-free transactions.

Backbone of Global Commerce

Despite the rise of APIs, EDI will continue to be a foundation of business communication, providing a standardised, efficient, and reliable method for exchanging critical data. Rather than being replaced, it is changing—integrating with modern technologies like APIs, cloud platforms, and AI to enhance automation and flexibility.

Businesses should evaluate their integration needs to determine whether Electronic Data Interchange, APIs, or a hybrid approach best supports their operations. The right strategy and support can help you reduce costs, improve operations, and ensure compliance with global e-invoicing mandates.

Author

Comarch Data Exchange & Document Management Team.